Julia Lo Bue-Said said the chancellor’s decision to reverse plans to reintroduce VAT free shopping for overseas tourists is a "huge knock" to small businesses in the UK who rely on the tourist pound.
"The drop in the value of the pound against both the dollar and the euro had made the UK and attractive place for tourists, especially in the run-up to Christmas, and this reversal of VAT free shopping is just another reason for tourists to take their business elsewhere," she said.
"Inevitably, when travellers are looking at where to visit, they’ll now be more inclined to look at markets like Paris and Milan to do their Christmas shopping rather than visiting the UK.
"We know that tax free shopping is a key motivator for people deciding where to travel. This move just means yet more uncertainty for UK businesses and the high street and in reality risks putting off international visitors to the UK."
Lo Bue-Said said two years of "detrimental policies" caused "huge disruption" to the travel industry, and the latest round of "government chaos" is creating "further instability" to the sector.
"How much more can businesses take?," she asked. "This current economic volatility is absolutely not what we need right now. What we need so desperately is a period of stability and certainty to enable business owners to plan for their future and instil consumer confidence."
