British retailers welcome planned return of VAT-free shopping for tourists

Government to consult on long-called-for scheme which is likely to cost almost 1.3bn

• Mini-budget: Kwarteng scraps top 45% rate of income tax and cuts stamp duty

Retailers and the hospitality industry have welcomed the planned return of VAT-free shopping for international tourists, saying it would help to boost sales.

The government said it would consult on introducing a new tax-free shopping scheme for Great Britain and would modernise the one in place in Northern Ireland.