London's Oxford Street, once a premier global shopping destination, has become a 'shining example' of Britain's high street crisis, overrun by American candy, souvenir, and Harry Potter shops that dodge taxes and intimidate investigators, according to a Daily Express investigation.
Raids and Lost Revenue Soar
Raids on these shops have skyrocketed over the past five years. Westminster City Council revealed in 2023 that up to £9 million in unpaid business rates had been lost due to the trend. Duncan Stephenson, policy and external affairs director at the Chartered Trading Standards Institute, warned: 'If our flagship high street in the UK that's a tourist hotspot has got dodgy shops, it reflects badly on the country. These dodgy shops are endemic across the UK, and London is one of the shining examples of that.'
'Phoenixing' Model Fuels Tax Avoidance
Unlike ghost shops elsewhere, London's candy stores often generate significant revenue but are deliberately shut down to avoid taxes. Josh Nicholson, head of housing and communities for Westminster City Council, explained: 'They are avoiding tax by 'phoenixing' – starting up, shutting down a few months later, then setting up again as something else. They're able to avoid business rates, VAT bills, and sometimes they've been found guilty of illegal working offences.'
Nicholson added that this model is highly lucrative: 'These shops are being fitted out very regularly with ghost directors. That reduces a lot of their costs; they're able to make a much greater margin and profit. Legitimate shops are just getting pushed out because they simply can't compete with the kind of criminality from some of the dodgy criminal sweet shops, vape, and tourist shops.'
Intimidation and Threats Against Investigators
Express reporters faced threats and aggression when attempting to speak with shop owners. At a souvenir shop raided last year for £80,000 in counterfeit goods hidden in a secret underground tunnel, a man tried to attack the videographer and threatened to 'break the f*****g camera.' At a luggage shop near Tottenham Court Road, staff followed and filmed journalists before an employee donned a security guard vest and became aggressive, refusing to show his SIA badge.
Council Admits Limited Powers
Councillor Tim Barnes, Westminster City Council, confirmed the details were passed to Trading Standards. He said: 'Our trading standards and council officers have similarly faced forms of intimidation, threats, and bullying behaviour. So I'm not surprised, but I'm saddened, and I'm really glad that the Express has helped to put a spotlight on things.'
Barnes expressed frustration: 'As somebody who lives in the area as well as represents it, the problem pains me every day. It is just harder to tackle than we'd like. Some of the issues are not things that councils normally have to deal with. They might be police matters; they might be the responsibility of other branches of government. When it comes to the avoidance of payments, avoidance of tax, and avoidance of rent, the sad truth is that we don't actually have the powers that you might expect that we would.'
Call for Government Action
Barnes appealed for stronger legislation: 'There have been a number of consultations with national government over the last couple of administrations; we've continually made this point that there should be some anti-avoidance legislation, but it hasn't come through. We need the support of people who experience this to report it, we need the experience of the Met to be able to tackle it, and we need the Government to give us the tools and legislation so we can go and pursue them, because we do take this very seriously.'
Laila Cunningham, Reform UK's candidate for London mayor, called the shops a 'symbol of Government failure.' She said: 'These are some of the most valuable retail spaces in Britain. They should be occupied by businesses that create jobs, pay their taxes and contribute to our economy. Instead, we've seen a proliferation of shops linked to unpaid debts, dissolved companies and repeated allegations of wrongdoing.'
