Brown proposes new £1,000 limit

Long-haul travellers from Britain and other European states should be allowed to return from trips outside the EU with shopping worth up to £1,000 without having to pay duty or tax.

Gordon Brown called the limit - last revised in 1994 to £145 - "out of date". The Treasury has proposed to the European commission and to other EU member states that the bar be "raised significantly", suggesting a level of £1,000.

Travellers' allowance limits do not include wine, spirits, tobacco or perfume. But Mr Brown's proposals are likely to be welcomed by tourists and other travellers picking up cheap clothing, jewellery and electrical goods abroad.

Shopping opportunities in the US have proved particu larly attractive to many UK travellers in recent months as the value of the dollar has weakened against the pound. Other popular destinations for long-haul travellers looking for better prices than those available on UK high streets include the Middle East and the far east.

Coleen McLoughlin, girlfriend of Manchester United footballer Wayne Rooney, fell foul of the low allowance when she was reportedly charged £3,000 at Manchester airport after a £15,000 New York spending spree.

Mr Brown's call for the duty-free shopping allowance to be increased would need to win the unanimous backing of EU member states. The Treasury said: "The government supports the freedom to shop across international borders and is against excessive restrictions being applied to travellers who bring goods into the country for their own use."