Government Acts to Defend UK Businesses from Unfair Trade Practices and Boost Fair Trade Competition
In a significant move to protect British businesses and promote sustainable economic growth, Chancellor Rachel Reeves has announced a series of immediate and strategic actions designed to tackle unfair international trade practices and promote a level playing field for UK retailers and manufacturers.
As part of the government’s wider Plan for Change, the new measures aim to mitigate the impact of aggressive foreign trading behaviours, including the dumping of cheap goods into the UK market, and ensure UK companies can compete fairly in an increasingly challenging global economy.
Key Announcements:
1. Empowering the Trade Remedies Authority (TRA)
The Trade Remedies Authority (TRA), the UK’s independent body responsible for defending against unfair trade practices, has been given a clear directive to accelerate protections for UK businesses:
- Increased support for SMEs
The TRA’s pre-application office will be reinforced with cross-departmental experts, including analysts, lawyers, and accountants, to better support businesses – especially small and medium-sized enterprises – in building robust cases against unfair trading.
- Faster investigations
The TRA will shorten the timeframes for launching and concluding trade investigations, ensuring UK businesses receive timely protection.
- Enhanced monitoring
New surveillance and data-gathering capabilities will be deployed to detect early warning signs of import surges and dumping practices, strengthening the UK’s ability to respond swiftly.
2. Review of the Low Value Imports Regime
The Chancellor has announced a comprehensive review of the customs treatment of Low Value Imports (LVIs), which currently allows goods valued at £135 or less to enter the UK free of customs duty.
Retailers such as Next, Sainsbury’s, Currys, and others have argued that this regime disadvantages UK businesses, enabling overseas sellers to undercut them by avoiding UK taxes and compliance obligations.
From next month, stakeholder engagement will begin, with the government keen to explore reforms that support fair taxation without unduly burdening consumers or increasing administrative complexity.
Stakeholders wishing to contribute to the review can email: lowvalueimports@hmtreasury.gov.uk
Industry Welcomes the Government’s Commitment
Retail and business leaders have expressed strong support for the Chancellor’s announcements:
Theo Paphitis
"This is a much-needed injection of confidence for retailers and a common-sense move to protect the UK economy. The sector has been crying out to level the unfair playing field."
George Weston
"We have long advocated for the closure of this tax loophole which undermines many UK companies. This review is a significant step forward."
Alex Baldock
"All retailers selling to UK consumers should play by the same rules. We are pleased that the government is urgently reviewing the low-value shipment loophole."
Fair and Open Trade: The Pillar of the UK’s Plan for Change
Speaking at the IMF Spring Meetings in Washington D.C., Chancellor Reeves emphasised the need for the UK to embrace open trade while ensuring fairness and resilience in the global system:
“We must stand up for free and open trade – crucial to deliver our Plan for Change to make everyone better off. But we must also ensure the system is fair, and the gains of global growth are more equally shared.”
The government’s recent actions build on earlier trade and industrial policy announcements, including:
- Suspension of tariffs on 89 products such as pasta, fruit juices, plastics, and spices – supporting domestic supply chains and keeping consumer costs down.
- Support for the Zero Emissions Vehicle Mandate, easing the transition to electric vehicle manufacturing.
- Strategic protection for British steelmaking, reinforcing UK industrial capabilities.
Business Secretary Jonathan Reynolds added:
“This government won’t stand idly by while cheap imports flood our markets and harm British industries. Today’s measures are about standing up for our national interest and giving British firms the tools to compete fairly.”
Conclusion
The UK government’s bold stance to tackle unfair international trading practices reflects a clear shift toward supporting homegrown businesses, restoring trust in trade systems, and delivering inclusive economic growth.
As the review of Low Value Imports begins and the TRA intensifies its efforts, UK businesses are being given a renewed opportunity to thrive – not through protectionism, but through fairness, transparency, and strategic support.
Prasun
Prasun Shrestha is a specialist in accounting and taxation and has served numerous clients based inside and outside UK achieve regulatory compliance and optimal performance.