Labour’s ‘unacceptable’ dithering over the Shein tax loophole is piling fresh pain on the High Street, the boss of Primark’s owner has warned.
George Weston, chief executive of Associated British Foods, urged ministers to scrap a rule that allows firms such as Chinese giants Shein and Temu to post parcels worth up to £135 to the UK without paying duty.
Chancellor Rachel Reeves has revealed plans for a clampdown. But bosses at established UK retailers were left fuming after she said it could take place as late as March 2029, so that the Government could ‘consult on the technical detail’ first. Weston told the Daily Mail: ‘The current delay benefits those without a UK footprint and is unacceptable.’
He urged the Government to ‘look at all options’, including interim measures. Weston added: ‘The Government’s commitment to close the customs loophole that unfairly disadvantages the High Street is welcome, but this needs to be brought in rapidly to prevent further undermining UK retailers.’
Collection: British singer-songwriter Rita Ora models for Primark
The EU is introducing a €3 (£2.60) fee for imports worth €150 (£130.80) or less to tackle a similar loophole this year – ahead of bringing in permanent reforms from July 2028.
Andrew Goodacre, chief executive of the British Independent Retailers Association (BIRA), believes an interim flat fee would raise ‘enough money to remove business rates for high streets, fund High Street investments and with change left over’.
He said a fee of £10 on low-value imports could raise £10billion, should the value of these parcels hit £1billion next year.
He added: ‘I really cannot see why the Treasury would not see this opportunity, which is such a win for them and can be truly positioned as supporting [the] High Street.’
Clo Moriarty, chief executive of homeware retailer Dunelm, also called for action: ‘We would welcome anything that creates a level playing field.’
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