The UK government has announced a new specialist unit to target retail outlets suspected of laundering criminal money, including vape stores, barbers, mini-marts, and sweet shops. Officials estimate that £1bn per year is laundered through such businesses.
New National Crime Agency Unit
A £20m National Crime Agency (NCA) cell will coordinate investigations and raids into businesses acting as fronts for gangsters, the Home Office said. The NCA and police forces in Greater Manchester, the West Midlands, Kent, and Essex will recruit 75 officers to bolster efforts.
Labour vowed to crack down on “dodgy” outlets such as US candy shops in its general election manifesto, amid investigations into tax evasion and counterfeit goods. The move comes as Reform UK and the Conservatives blame Labour for a decline in UK high streets, with household brands collapsing and shoplifting rising.
Trading standards departments will receive an extra £6m to strengthen responses to sham businesses in at-risk local authorities. New training will help officers identify suspicious businesses, strengthen compliance, and boost enforcement. The funding comes from a £30m pot set aside by Chancellor Rachel Reeves in last November’s budget.
Scale of the Problem
There is growing concern that many such businesses act as fronts for money laundering, tax fraud, and illegal work. The NCA estimates at least £12bn of criminal cash is generated in the UK each year, with £1bn laundered through high street businesses like mini-marts, barber shops, vape stores, and sweet shops. Some businesses are also linked to fake goods, tax evasion, illegal working, and drug supply.
As many as half of convenience stores and vape retailers in some areas are estimated to have links with organised crime, according to trading standards. Up to a third of American candy stores and one in four takeaways in specific areas are suspected of being fronts for criminal activity.
New High Street Organised Crime Unit
A new High Street Organised Crime Unit, chaired by Security Minister Dan Jarvis, has been established to bring together government departments, policing partners, and trading standards. Home Secretary Shabana Mahmood said: “Criminal gangs have exploited our high streets to launder their dirty money and undercut honest businesses. We are hitting back with a nationwide crackdown to shut these fronts down, seize dirty cash, and drive organised crime off our high streets and put bosses behind bars.”
Coordinated raids under Operation Machinize 2 have targeted cash-intensive businesses in the “grey economy,” with the NCA raiding over 2,700 premises, leading to 924 arrests. Police seized more than £10.7m of suspected illegal proceeds, 111,000 illegal vapes, 70kg of cannabis, and 4.5m illegal cigarettes.
Public Perception of High Streets
Research released in January showed that people feel high streets have declined more than any other part of their local area. Improving shopping precincts was the third most important local issue for voters, behind good healthcare and reducing crime, according to a YouGov poll. Reform UK supporters were more likely than others to say their area had significantly declined, underlining what researchers called a “deep sense of place-based resentment” towards Westminster.
