Bira has criticised the Budget for delaying action on closing the “de minimis” loophole, which exempts imports valued at £135 or less from customs duties, until 2029. The association warns the move will prolong the competitive imbalance faced by independent retailers as low-cost parcels continue to flow into the UK from overseas sellers.
CEO Andrew Goodacre says the issue has become increasingly urgent as cross-border e-commerce surges. The British Retail Consortium reports that the value of small packages entering the UK rose by 53 per cent to £5.9 billion last year, up from £3.9 billion the year before.
“Why wait four years when the USA closed their loophole in six months and Europe is doing the same next year?” he says. “Four years is an extraordinary amount of time. We’re being told to live with unfair competition from overseas sellers dodging duties, VAT and safety standards while our members play by the rules and pay their taxes. We could learn from other countries who’ve acted far more quickly.”
The loophole has enabled a tide of cheap goods to reach UK consumers without customs charges, undercutting domestic retailers. Goodacre warns the delayed reform will hit independents hard during the intervening years.
“This was supposed to be about levelling the playing field,” he adds. “Instead, we’ve got another four years of being undermined by cheap and often unsafe imports while the government drags its feet.”