Leading British retailers have launched a fierce critique of the government's decision to postpone a crucial tax rule change, a move they say unfairly benefits Chinese online giants Shein and Temu at the expense of the UK high street.
Retail Giants Voice Outrage Over Four-Year Delay
The Labour government, in its recent budget announcement, confirmed it will wait until 2029 to close a customs loophole known as the de minimis threshold. This rule currently allows low-value goods imported from outside the UK to enter without attracting VAT or customs duty, enabling ultra-cheap retailers to undercut domestic businesses.
Primark, Currys, and Boohoo are among the prominent names condemning the timeline. George Weston, chief executive of Primark's owner Associated British Foods, stated the delay "would prolong the damage caused and would be unacceptable." He acknowledged a commitment to close the loophole was positive but insisted it "needs to be brought in rapidly to prevent further undermining of UK retailers."
An "Unlevel Playing Field" and Flood of Parcels
The British Retail Consortium (BRC), representing the wider industry, revealed stark data showing the scale of the issue. They report that 1.6 million parcels are now arriving in the UK daily, a figure that has doubled from the previous year. Helen Dickinson, chief executive of the BRC, urged the Chancellor to take decisive action, pointing out that the US has already removed its threshold and the EU will follow suit next year.
"This will help protect British consumers from the risks of imported goods that don’t meet the UK’s stringent environmental and ethical standards, while promoting fairer competition," Dickinson added.
Dan Finley of Debenhams Group, which owns Boohoo and PrettyLittleThing, called the wait "disappointing." He highlighted the direct competitive threat, stating, "There is no doubt that Shein and Temu are major competitors to us and they have disrupted our business." Finley also criticised the created imbalance, noting UK online sellers now face duties when selling to the US and EU, while overseas rivals retain their tax advantage when shipping to Britain.
Calls for Government to Go "Further and Faster"
The collective message from retail leaders is one of urgency. Alex Baldock, the boss of Currys, pressed the government to move "further and faster" on both the de minimis and business rates changes. Dan Finley drew a direct comparison with international efforts, questioning, "They managed these changes in nine months in the US. I’m not sure why we can’t do it in the same amount of time."
Retailers argue that accelerating the rule change would not only level the competitive field but also benefit public finances. Finley estimated that acting sooner would mean "more money in the coffers of the Treasury and less burden on the UK taxpayer." With the high street under sustained pressure, the industry's demand for swifter action presents a significant challenge for the government's economic policy.
