Debenhams boss urges Labour to quick observe packaging tax crackdown

The boss of Debenhams has urged the Government to fast-track a crackdown on a tax loophole that helps Chinese giants such as Shein and Temu.

UK retailers want to block foreign firms posting parcels to the UK worth up to £135 without paying tax.

Rachel Reeves intends to review the ‘de minimis’ loophole but has said doing so might take as long as until March 2029.

Dan Finley, chief executive of online retailer Debenhams, whose brands also include Coast and Dorothy Perkins, said Labour’s delay means there is not a level playing field for British firms.

Tax loophole: Retailers are urging Labour to tackle the ‘de minimis’ rules that help discounters like Shein

A consultation into the issue closed last week. UK retailers are also grappling with higher taxes and war in the Middle East looms large over already weak consumer confidence.

Finley said: ‘The decision to close the de minimis loophole was a welcome step, but we would have preferred a much shorter timeline.

‘The US delivered a similar change in just nine months, and delaying implementation until 2029 means lost revenue for the UK and continued unfairness in the market.’

But he said that changing the rules would ‘finally level the playing field on safety, compliance and tax for everyone.’

His calls echo those of George Weston, the boss of Primark owner Associated British Foods, who last month blasted Labour’s ‘unacceptable’ dithering on the matter as the High Street suffers.

Weston said the Government should copy the EU, which is introducing a fee for imports worth €150 or less this year – before it introduces permanent reforms from July 2028.

Andrew Goodacre, chief executive of the British Independent Retailers Association (BIRA), agreed that the UK should introduce a customs handling charge as an interim measure.

He said that ‘too much damage will be done to UK shops and high streets if we do not do it quicker.’