Rachel Reeves is contemplating taking action against questionable businesses in town centers such as dubious vape shops, barbers, and candy stores in her upcoming Budget announcement, according to information obtained by The Mirror.
The Chancellor is facing pressure to implement a comprehensive government strategy to address dishonest firms that are negatively impacting the vitality of British town centers in her statement on November 26.
Insiders revealed to The Mirror that the complex nature of the issue means that no single entity currently holds the responsibility for addressing rogue traders who are operating openly.
Various authorities are currently overseeing different aspects of these issues, with local government handling trading standards, HMRC monitoring tax matters, and the Insolvency Service keeping an eye on bankruptcies and disqualifying directors. Additionally, the Home Office is responsible for overseeing illegal employment, and the National Crime Agency (NCA) is focused on investigating crimes like money laundering.
It has been reported that the Chancellor is keen to take action on this matter, with Treasury officials intensifying pressure behind closed doors.
Proposals put forward to officials include the formation of a task force led by HMRC and the Insolvency Service, which would spearhead efforts to combat tax evasion and fraud, ultimately recovering taxpayer funds. While specific details are still being ironed out, the government has expressed a clear intent to revitalize the country’s town centers.
In a separate initiative, earlier this year, the NCA launched Operation Machinize, a nationwide effort targeting cash-heavy businesses like barbershops, vape shops, nail bars, and car washes, which are often used by criminals to disguise illicit cash flows.
During a three-week crackdown on high street crime, authorities visited 380 premises, securing orders to freeze bank accounts with a total exceeding £1 million. This ongoing operation demonstrates effective collaboration among various agencies, including HMRC, local law enforcement, and Trading Standards.
MPs from different regions have been increasing pressure on the government to take more decisive action to revitalize British high streets.
Joe Powell, a Labour MP representing Kensington and Bayswater, expressed frustration over tax evasion issues plaguing his constituents and legitimate businesses on the high street. He welcomed the government’s Pride of Place plan, indicating that granting councils the power to block dubious stores from obtaining planning permission is a positive step. Powell emphasized the importance of a robust crackdown by HMRC and the Insolvency Service to send a strong message to fraudsters.
Labour MP Jo Platt, representing Leigh and Atherton, highlighted the detrimental impact of illicit activities on high streets, stressing the need for coordinated action and enhanced enforcement measures to address broader financial secrecy issues affecting communities nationwide.
A recent BBC investigation uncovered a Kurdish crime network facilitating illegal work for migrants in mini-marts on high streets. The probe revealed a network of fake company directors involved in dozens of businesses across the country, from Dundee to south Devon.
Over the past five years, HMRC has concluded approximately 10,000 cases related to retail-focused investigations, collaborating with local authorities, law enforcement agencies, and other government bodies to combat illegal activities on high streets. This includes joint efforts with the Insolvency Service and Companies House to tackle rogue directors exploiting insolvency and dissolution processes to evade taxes.
HMRC and the Insolvency Service reiterated their commitment to supporting honest businesses and holding accountable those who undermine the tax system through civil and criminal enforcement measures.
In a statement, the Insolvency Service emphasized the importance of combating rogue directors and fraudulent companies, underlining the detrimental impact on trust in the business environment and urging collaborative efforts with law enforcement agencies and government partners to investigate misconduct and enforce accountability measures.
