Over the past two years, the United Kingdom’s retail sector has faced a pronounced downturn, marked by declining high street sales, store closures, and shifting consumer habits. In parallel, there has been a surge in small parcel imports from China, particularly those valued under £135—shipments that largely enter the country without incurring customs duties.
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The UK Government is therefore receiving less revenue.
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It is reported that the spending on small parcels from China has risen from £5.1 billion in 2022 to £7.5 billion on 2024. I would suggest that this will only increase over the coming years and I would suggest this may well get to £10 billion in 2025.
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Shoppers who are benefiting from these imports are getting their goods at a significant discount to the Uk retail price, but not helping support the overall economy by way of Jobs,and the tax revenue that follows, uk company profits etc.
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So what would I do
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Very simple, I would add a customs duty of 10% on all small goods under £135. This would generate up to £1 billion per year. This would be collected at the point of sale, i.e. the online store.
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Another £1Bn to help pay of the national debt.
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