B&Q boss says tax break that favours its Chinese rivals must be scrapped

Rachel Reeves must intervene to assist British retailers by ending an imports tax break that favours Chinese online rivals and rethinking plans for higher levies on large stores, the boss of B&Q has said.

- Sarah Butler

The outspoken plea to the chancellor from Graham Bell, the DIY chain's chief executive, comes as the government faces growing pressure over its management of the economy after the Bank of England said as it cut interest rates on Thursday that tax rises were contributing to rising inflation and unemployment.

A series of big retailers, including Poundland, River Island and Claire's, are expected to close large numbers of stores this year amid poor consumer confidence and increases in employers' national insurance payments, the minimum wage, packaging taxes and business rates. Reeves faces rising calls to help consumer businesses.

However, after a recent round of negative economic data prompted a warning this week from the NIESR thinktank of a looming deficit of more than £40bn, fears are growing that ministers are preparing the ground for tax rises in this autumn's budget.

Bell suggested that one area where the chancellor could really help British business would be to tackle the "de minimis" rule, which has underpinned the rise of the fast-growing online specialists Shein and Temu.