Brian Duffy, chief executive of The Watches of Switzerland Group, said the government’s reinstatement of VAT rebates for shoppers from overseas was “not just good news for London, but also cities across the UK”.
Quite.
But that’s not the only good news for Mr Duffy and all purveyors of pricey watches and other luxury goods.
Treasury brings back instant VAT rebates for overseas visitors
Axing the 45% top rate of income tax, lowering the basic rate from 20% to 19% and reversing the planned 1.5% national insurance rise will save over £5,000 for somebody earning £200,000 — the price of an entry level Rolex.
A cap on banking bonuses is also being nixed.
This might not necessarily make bankers richer, because salaries may be adjusted over time to create head room for higher performance-related pay, but there is nothing more likely to trigger the purchase of a Patek than a six-figure windfall.
The good news for Watches of Switzerland, and its competitors, does not end there.
Markets reacted to the mini budget by selling sterling.
The weak pound makes goods even cheaper to foreign visitors, as we saw after the Brexit vote in 2016, which triggered a spike in UK luxury watch sales that, arguably, propelled Watches of Switzerland to the multi billion dollar business it is today.
Many luxury watch companies have already raised prices in the UK more than once this year.
Unless they hike them again, the UK will be the most attractive country in the world to visit and buy expensive timepieces, VAT-free.
Remarkably, Watches of Switzerland shares dipped by just over 1% on Friday, although that was half the fall of the FTSE 100.
Its stock price and market value is currently less than 50% what it was a year ago, despite hitting or exceeding its financial forecasts every quarter since the peak.
Yes, we have an inflation and cost of living squeeze, but I see no reason to think those forecasts will become any less optimistic, particularly with Mr Kwarteng in No.11 and Trussonomics being given a whirl.
US citizens will not be able to buy a Rolex here, I was told by the manager of WOSG group shop they are not allowed to sell Rolex watches to overseas buyers, anyway they will also not be on any waiting list either to buy a Rolex.