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The Chancellor has confirmed she is closing a loophole that allows overseas online firms to avoid customs duties on small parcels sent to the UK.

Speaking during her Autumn Budget announcement in the House of Commons on Wednesday, Rachel Reeves said she will stop such firms from "undercutting our high street businesses by ensuring customs duty applies on parcels of any value" to "support a level playing field in retail".

Currently, overseas retailers can send small parcels worth less than £135 to the UK without paying import duties. This threshold was introduced in 2021 in order to align the duty with new VAT rules introduced as part of the UK's post- Brexit customs model.

British high street retailers have criticised the policy, saying it has created an "uneven

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