Mulberry closes its Bond Street store as the Government ends VAT-free shopping trends now

It has long been a destination for fashionistas seeking out the luxury bags beloved by the Princess of Wales and A-list stars.

But now the gleaming Mulberry store on Bond Street is to close its doors for good – a victim of the ‘tourist tax’ which means international visitors can no longer claim back 20 per cent VAT.

The moment it shuts its doors for the final time today marks an end to the renowned brand’s presence on the street, where it first opened up in 1995.

The latest setback for businesses that thrive on foreign shoppers comes after Chancellor Jeremy Hunt pressed ahead with the levy.

The incentive is still on offer in mainland Europe, with experts saying people are now flocking to France and Spain instead.

A Mulberry spokesman said last night: ‘The lack of VAT-free shopping in the UK has been particularly felt on Bond Street, which has always been an iconic shopping destination for tourists. The decline in visitors has impacted footfall and sales.’

They added that high rents and business rates have also conspired to make ‘the store commercially unviable resulting in us taking the difficult decision to close’.

Tourists visiting Britain were allowed to reclaim VAT on purchases until January 2021, when the tax break was axed by then Chancellor Rishi Sunak.

Kwasi Kwarteng tried to reintroduce the incentive in his ‘mini-Budget’ but Mr Hunt reversed the decision a month later.

The Treasury claims it will save £2 billion a year – a figure disputed by some economists who think it will actually hit the public purse.

In December, bosses at both Harrods and Selfridges backed calls for a review of the tax.

And last month the finance chief at rival Burberry, Julie Brown, said demand from foreign tourists in London had bounced back at a much slower rate than in Europe since the pandemic. The

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