A leading trade association has “strongly” welcomed the chancellor's announcement of plans to create a level playing field for British businesses against unfair international trade practices.
The British Independent Retailers Association (Bira) said the announcement from chancellor Rachel Reeves on Wednesday represents a “significant step forward” in addressing the concerns it has consistently raised on behalf of its members.
The government announced immediate action by the Trade Remedies Authority (TRA), the body responsible for defending the UK, against certain unfair international trade practices.
The chancellor also announced her intention to review the customs treatment of Low Value Imports, which allows goods valued at £135 or less to be imported without paying customs duty.
Some of Britain’s best-known retailers such as Next and Sainsburys have called to amend the treatment, arguing that it disadvantages them by allowing international companies to undercut them.
Speaking in Washington D.C. at the annual IMF Springs meetings, Reeves said free and open trade is good for the UK, but fairness needs to be injected into the global economic system.
“This government is meeting the moment to protect fair and open trade,” Reeves said.
“Following recent announcements reducing tariffs and support for the zero-emissions vehicles industry, today’s package will help businesses compete fairly with international exporters, supporting a world economy that provides stability and fairness for working people and businesses alike.”
Commenting, business and trade secretary Jonathan Reynolds said: “This government won’t stand idly by while cheap imports flood our markets and harm British industries. That is why I met with the TRA recently to agree urgent steps to tackle these issues in real time to deliver quicker protections for firms.”
Bira noted that it has been campaigning for independent retailers over concerns about the damaging impact of cheap imports entering the UK duty-free and often avoiding VAT, creating unfair competition with responsible UK-based retailers.
The trade body added that the chancellor's decision to review the customs treatment of Low Value Imports directly addresses one of its key concerns, pointing out that this system has disadvantaged British retailers by allowing international companies to undercut them, affecting high streets across the nation.
“This announcement validates what Bira has been pushing for on behalf of its members,” Andrew Goodacre, CEO of Bira, said.
“Since our October conference, the association has been working closely with BHETA and RAVAS – organisations aligned with Bira's thinking – to bring these issues to the government's attention. It is pleasing that the government has been listening and is now taking action."
The government's package of support includes increased assistance for businesses to report unfair practices, improved monitoring of trade data, and an acceleration of measures to deter import surges. Bira said these steps will help protect independent retailers who form the backbone of the high streets.
Beyond the issue of duty-free imports, Bira continues to advocate for action on VAT avoidance. Online marketplaces must be held accountable for collecting VAT from sellers, as they are legally responsible for doing so. The safety concerns associated with many imported products also remain a significant issue that requires addressing.
“While this announcement is welcome, Bira urges the government to act quickly and decisively. The association will continue to push on these issues as it looks to protect the interests of hard-working independent retailers across the UK,” added Goodacre.
