Reeves expected to scrap ‘low-value imports’ loophole that benefits Shein and Temu

A Shein pop-up store in London. The Singapore-headquartered company recently reported a 20% rise in global revenues to $37bn (£27.7bn). Photograph: Isabel Infantes/Reuters

Rachel Reeves is reportedly planning to close a tax loophole in her budget next month that allows overseas retailers including Shein and Temu to send small packages to the UK without paying any customs duties.

The arrangement, central to the business model of the online marketplaces where almost all sellers are based in China, has been criticised by British high street chains that complain it creates an uneven playing field.