By Stuart Greenfield

The Autumn Budget could see Rachel Reeves close a low-value imports loophole, leaving millions of online shoppers at risk of paying higher prices, and hiking costs for businesses selling via popular online marketplaces.

Currently, UK imports of goods worth up to £135 don’t typically incur any customs duty. There are calls from some businesses to change this rule to create a more level playing field, arguing that duty exemptions enable the likes of Temu and Amazon to undercut competitors.

Abolishing the £135 threshold could reportedly raise £600 million annually in customs revenue and is a move that seems increasingly likely. Recent days have seen proposals to accelerate similar plans in the EU, where a low-value customs exemption on goods worth up to €150 would be removed in the first quarter of 2026, two years earlier than planned.

All the signs point to the government planning to capitalise on the lucrative flow of so-called ‘cheap Chinese parcels’, while supporting domestic........

© LBC