Three people have been arrested following a series of immigration and tax evasion raids on souvenir shops in central London. Officers from HM Revenue and Customs (HMRC) and the Home Office conducted surprise inspections at six stores in Westminster that sell royal family and UK-themed merchandise.
Details of the Raids
During the operation, a £40,000 fine was imposed on one business for employing an illegal worker. Home Office officers made three arrests related to immigration offences. Trading Standards also confiscated goods worth £5,433, including 289 illegal disposable vapes, 173 squishy toys, counterfeit bags, hats, scarves, and unsafe travel adapters. Additionally, till data was downloaded to cross-check with tax compliance records.
Government Response
Dan Tomlinson, Exchequer Secretary to the Treasury, stated: “HMRC is stepping up its action to go after illegal activity on our high streets. Owners of dodgy shops that are evading tax: we are coming for you. Too many high streets have been blighted by illegal activity that harms local communities and undercut honest businesses, and we’re determined to fix this. We’re increasing our action across the UK to target the criminals using shops as a front for tax evasion, money laundering and fraud. This is a sustained, nationwide effort – and HMRC and its partners will use every power available to dismantle these criminal networks.”
The raids coincide with the Home Office’s launch of a new £30 million High Street Organised Crime Unit. This initiative aims to coordinate HMRC with other government bodies, including Trading Standards, police, and the National Crime Agency, to combat criminal networks that undermine legitimate businesses.
Local Authority Perspective
Caroline Sargent, Westminster Council's lead on enforcement, commented: “This operation was a perfect example of what can be achieved when central and local Government work together to clean up the high street. As a local authority we seize large amounts of counterfeit goods - more than £330,000 in the last year alone - but HMRC involvement on issues like tax fraud or money laundering takes those efforts to another level. The shell companies behind candy stores and vape shops are notoriously difficult to unpick and the involvement of HMRC is hugely welcome. Likewise, we know these shops are sometimes staffed by people with no right to work in the UK, and again central Government takes the lead here. We want the West End and our high streets to be places with attractive shops and restaurants. We are going to be ramping up these operations in the coming months so our high streets are not overrun with tat.”
