(Bloomberg) -- London’s West End shopping district and other UK hotspots for tourism spending are expecting a boost from a decision to let foreign visitors claim back value added tax again.

Chancellor of the Exchequer Kwasi Kwarteng announced the move as part of a package of tax cuts Friday, reinstating an exemption that ended last year.

Non-U.K. visitors to Great Britain will be able to obtain a refund on the 20% tax for goods bought in the U.K. and exported in their personal baggage.

New Prime Minister Liz Truss’s Conservative government is trying to jump-start a stagnating economy as the Bank of England hikes rates to tame inflation.

The reversal of the decision of the previous Conservative government to scrap the tax refund was welcome news for retailers of luxury fashion and jewelry, popular with wealthy tourists.

Helen Brocklebank, chief executive officer of British luxury group Walpole, said Britain needed to be competitive with European countries that have similar exemptions.

Enticing tourists to shop in Britain could be an indirect boost to the hospitality sector, too. Industry bodies welcomed the decision, but called for more support for their sectors.

“While tax-free shopping for overseas customers is a welcome step to attract overseas tourists, a far more immediately impactful step would be to reduce VAT for our domestic customers,” UK Hospitality said in a statement.

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