FROM licensing barbershops to getting tough on rogue landlords – MPs hold UK’s first ever consultation on criminal High Street shops
A leading All-Party Parliamentary Group (APPG) has heard calls for the Government to take urgent action in 3 key areas to tackle the growing problem of money laundering and tax abuse through High Street outlets like vape shops, barber shops, mini markets and candy stores.
The first of its kind
The evidence came out of a major roundtable hosted by the APPG on Anti-Corruption and Responsible Tax bringing together experts from government, police, finance, regulators, trade bodies and more, for a major roundtable evidence-sharing session.
The two-hour discussion is thought to be the UK’s first ever consultation on this high-profile issue, which is damaging the retail sector up and down the UK. It was held in Westminster Hall in collaboration with the Royal United Services Institute (RUSI).
The APPG heard that, in order to build on the progress already made in the Pride In Place initiative (which will give communities the power to veto dodgy shops) the national and local government, enforcement bodies and other partners need to focus on the following areas:
- Boost funding to enforcement agencies and regulators, at least in part via frozen/seized criminal assets.
- Take firm action to protect vulnerable people who end up staffing or acting as nominee directors for High Street money laundering outlets eg overseas students.
- Improve communication and data sharing between enforcement agencies at both local and national levels, also between the public and private sectors.
Specific ideas which the APPG will be investigating included:
- A mandatory licensing or registration system for all hairdressers and barbers (regulation already exists in this area, but is currently only a voluntary requirement)
- Introducing greater penalties for those letting agents and landlords who, in order to maintain rental income/gain greater commissions, knowingly enable money laundering and tax abuse in their properties.
- Encouraging far wider use of the Companies Act, which gives enforcement agencies the power to wind up companies for a variety of reasons, including criminal enterprise.
“The next steps”
APPG member and former Chair Joe Powell MP said:
“The crackdown on dodgy shops across the country is something the public cares deeply about.
“Our high streets are being hollowed out by illegitimate businesses that often don’t pay the tax they owe, sell illicit goods and have links to serious organised crime. That has real consequences for those that play by the rules, and for communities fed up with seeing illegal activity in plain sight.
