Retailers have slammed the Treasury as ‘pathetic’ after it said it would speed up closing a loophole for overseas firms by just six months.

The Government has said it will move to scrap a rule that allows Shein and Temu to post parcels worth up to £135 to the UK without paying duty before October 2028.

Retailers say this policy is killing the UK High Street as it means foreign companies can undercut British firms, which have been hit with higher costs in recent years.

The Chancellor had announced a crackdown as late as March 2029 at last year’s Budget, sparking fury among retailers.

And news that the timetable has been moved forward by mere months has now incensed major household names - including the boss of Primark, who said it was an ‘unacceptable timeline’.

The lax approach comes after the High Street has been battered by a slew of policies, including a botched business rates reform that saw publicans ban Labour MPs in protest, National Insurance hikes and inflation busting hikes to minimum wages.

Businesses have said the culmination of these cost increases have left the High Street on its knees and many shops will shut by the time the loophole is closed.

There are fears of the UK being flooded with cheap imports when the EU cracks down on cheap imports next month, while the US has already closed a similar loophole.

British Independent Retailers Association chief executive, Andrew Goodacre, said the shortening it by such a small amount of time was ‘pathetic’ and ‘really shows no sense of understanding how big an issue this is for high streets.’

He added: ‘The lack of urgency from our own government risks leaving the UK as a dumping ground for cut-price overseas sellers.’

George Weston, chief executive of Primark owner Associated British Foods, said: ‘This is so dispiriting. A system that the government itself recognises damages UK high streets and loses the exchequer hundreds of millions in potential revenue is being left in place for two more years.

‘If the government expects to be seen as serious about rejuvenating town and city centres and preserving UK jobs then ministers must examine how this unacceptable timeline can be accelerated and show more support for UK retail.’

Retailers would like to see a £2.60 fee on imports worth £130.80 or less introduced immediately, which is what the EU has done ahead of bringing in permanent reforms from July 2028.

And British Retail Consortium boss Helen Dickinson, who represents big names from Tesco to Marks & Spencer, also said the latest update ‘does not go far enough.’

She said: ‘UK retailers cannot afford to compete on an unfair playing field against importers not paying tariffs.’

It comes just days after Prime Minister Keir Starmer resigned, with one retail industry source speculating that this was a last-effort attempt for the Treasury to 'look on the ball'. 

Debenhams Group boss Dan Finley, who owns Boohoo and Pretty Little Thing, said: 'Bringing the implementation date forward by six months does not change the fact that the UK remains years behind other major markets. The US has already acted and the EU will close the loophole next week, yet the UK will continue operating under the current regime until 2028.

'Every month this loophole remains open not only disadvantages UK businesses, but also means the Treasury misses out on billions of pounds in potential tax revenue.'