Debenhams chief executive Dan Finley has called on the Labour Party to accelerate efforts to close a tax loophole that allows foreign online retailers, such as Shein and Temu, to sell goods in the UK without paying customs duties on parcels valued up to £135. The exemption has been criticized by UK retailers who argue it enables these companies to undercut domestic businesses.

Labour has committed to ending the duty-free threshold by October 2028, but Finley urged for a faster response, pointing to actions taken by the United States and European Union, which phased out similar exemptions in six and twelve months respectively. He suggested that the UK government should aim to implement changes within 18 months.

Finley also cautioned against introducing policies that could increase operational costs for British companies or add financial strain to consumers already facing economic pressures. His remarks come as Boohoo, the online retailer that owns Debenhams, reported a turnaround with pre-tax profits of £28.3 million for the first half of the year to August, a significant improvement over a £17.9 million loss during the same period last year.

With the holiday season approaching, Boohoo has launched a marketing campaign featuring model Olivia Attwood as part of its strategy to boost sales and compete in the competitive retail market. The firm's strong financial results have underscored the importance of addressing competitive imbalances created by the duty exemption for overseas shipments.