Chancellor Rachel Reeves is preparing a major offensive against the proliferation of dubious businesses blighting Britain's town centres, as part of her upcoming Budget, The Mirror can reveal.
A Cross-Government Assault on Rogue Traders
Facing significant pressure, the Chancellor is set to introduce a cross-government strategy in her November 2026 Budget statement to tackle the firms operating in plain sight. Insiders confirm that the current regulatory landscape is fragmented, with no single body holding sole responsibility for the issue.
Local authorities manage trading standards, while HMRC handles tax affairs and the Insolvency Service monitors bankruptcies. Simultaneously, the Home Office oversees illegal working and the National Crime Agency (NCA) investigates serious crimes like money laundering. Treasury ministers are now applying pressure behind the scenes to create a cohesive plan.
Proposed Measures and National Context
Suggestions presented to ministers include establishing a dedicated taskforce led by HMRC and the Insolvency Service. This unit would spearhead efforts to combat tax evasion and fraud, aiming to claw back significant sums of taxpayer money. While the details are still being finalised, the government's intent to revive Britain's high streets is clear.
This initiative dovetails with the Pride in Place strategy announced by Keir Starmer in September, which pledged £5 billion to rebuild deprived communities. A key part of these plans will grant local communities the power to block new vaping and gambling shops from opening.
In a demonstration of what coordinated action can achieve, the NCA's Operation Machinize earlier this year targeted cash-intensive businesses often used for money laundering. In a mere three-week crackdown, 380 premises were visited, and freezing orders were secured for bank accounts totalling over £1 million.
MPs and Enforcement Agencies Welcome the Move
MPs from across the country have been vocal in demanding action. Labour MP for Kensington and Bayswater, Joe Powell, stated his residents and legitimate businesses are fed up with the blatant tax dodging that was previously allowed to run riot.
Jo Platt, Labour MP for Leigh and Atherton, who runs the Shut Down Dodgy Shops campaign, emphasised that illicit high street activity is a symptom of a wider national issue rooted in financial secrecy. She advocates for robust enforcement and coordinated action to safeguard local economies.
The scale of the problem was highlighted by a recent BBC probe that exposed a Kurdish crime network connected to more than 100 mini-marts, barbershops, and car washes across the UK, from Dundee to south Devon, using fake company directors to facilitate illegal working.
An HMRC spokesman affirmed their commitment, noting that while the majority of businesses are honest, they will use all civil and criminal powers to pursue those who undermine the tax system. Similarly, an Insolvency Service spokesman warned that rogue directors harm creditors and honest competitors, and that they have a range of powers, from director disqualifications to criminal prosecutions, to hold them accountable.
