The Entertainer boss warns UK to become 'dumping ground' and blasts Labour over tax reform delays

This allows overseas sellers to send low-value goods into the UK without paying customs duties.

It comes after ministers delayed plans to abolish a controversial customs threshold until 2029, the boss of toy retailer The Entertainer has warned.

In a strongly worded letter to ministers seen by The Times, Mr Murphy described the timetable as an "unacceptable delay to reform" that would continue to disadvantage British retailers already facing significant economic pressures.

The current rules allow overseas sellers, including Chinese ecommerce giants Temu and Shein, to ship parcels worth less than £135 directly to UK consumers without incurring customs duties.

By contrast, British retailers importing products in bulk are required to pay duties, VAT and compliance costs on all shipments entering the country.

Mr Murphy said the arrangement had created "an uneven playing field with respect to foreign marketplace sellers" and argued that extending the system until 2029 was "wholly indefensible and deeply damaging to UK retailers in an era already characterised by extreme economic challenge for the sector".

The Entertainer operates more than 150 stores across Britain and is among a growing number of retailers calling for ministers to accelerate reforms.

Major UK retailers including Sainsbury's, Currys and AO World have also criticised the current system, arguing it gives overseas competitors an unfair commercial advantage by allowing them to sell goods at significantly lower prices.

The concerns come as other major economies move to tighten rules governing low-value imports.

The United States scrapped its equivalent $800 exemption for low-value imports last August, while the European Union is due to introduce temporary customs duties on cheap parcels from next month.

Britain, however, is not expected to begin imposing similar duties until some point in 2029.

Ministers have defended the slower approach, citing concerns that introducing changes too quickly could create border disruption and customs delays similar to those experienced following reforms in the United States.

Mr Murphy warned that the UK's slower response could encourage overseas sellers to redirect goods away from countries introducing tougher controls and into the British market instead.

He said the UK risked becoming an "e-commerce dumping ground" if action was not taken sooner.

Helen Dickinson, chief executive of the British Retail Consortium, also raised concerns about the potential consequences of the delay.

She said: "With the US and EU already moving quickly to close this loophole, the UK stands alone, increasing the risk that even more goods could be dumped on our market."

Industry figures have also warned that the customs threshold may create safety risks for consumers.

Research by the British Toy and Hobby Association found that 86 per cent of 90 toys purchased from seven online marketplaces, including Temu, Shein, Amazon, eBay and TikTok Shop, failed safety tests.

A further four per cent of the products were found to be in breach of UK labelling requirements.

Mr Murphy said the exemption had become a "route by which unsafe goods can and do enter the UK" before reaching consumers.

Geoff Sheffield, chairman of the Toy Retailers Association, said: "These toys not only put children at risk of harm and damage the reputation of the entire industry, but they undercut genuine UK toy retailers."

A Treasury spokesman said the Government remained committed to removing the customs duty relief and reforming declaration processes to ensure "all goods are appropriately controlled".