Fears as UK high streets are taken over by organised criminal gangs | Politics | News
Shoppers believe black market vape and tobacco shops are ruining high streets and endangering children, new polls have found. It comes as MPs launch an investigation into the increasing use of high streets by organized crime gangs who evade taxes, sell counterfeit goods, employ people illegally and sell illegal tobacco products. A survey has found that 69% of the public, or more than two-thirds, are concerned that black market tobacco or nicotine products are ruining the high street and local communities.
More than 80 percent of parents said they were concerned about tobacco and nicotine products sold on the black market being made available to children. The survey, by Merlin Strategies, was published as the House of Commons Treasury Committee launched an investigation into the National Crime Agency’s warnings that at least £1 billion is laundered through criminal high street shops each year. As part of the investigation, MPs are looking into £1.3bn of tobacco duty that goes unpaid each year in the UK. New figures from HMRC show the estimated tax gap for cigarettes is £800 million, compared to £500 million for hand-rolling tobacco.
Claire Jolly, Senior Corporate Affairs Director at cigarette and e-cigarette maker Philip Morris Limited (UK & Ireland), said: “The illicit market in the UK is out of control and our children and communities are paying the price. The government needs to get this spiraling issue under control by quickly introducing a tightly enforced licensing scheme. The message is clear: people are fed up.”
Anti-smoking campaigners accuse tobacco firms of trying to solve the problem of tax avoidance to deter other countries from imposing high tax rates. The UK currently has higher tobacco taxes than most countries; therefore cigarettes are cheaper in other parts of Europe.
Hazel Cheeseman, chief executive of Action on Smoking and Health, told the Treasury Committee: “Much of the illicit tobacco currently on the high street is straight up criminal and part of organized crime.”
He warned: “We need legs in terms of trading standards…trading standards have retreated and the legs are not there to adequately enforce the law.”
The Home Office has vowed to crack down on “dangerous” vape shops, barbers and nail salons in a bid to stop organized crime gangs taking over the high streets.
Home Affairs Minister Shabana Mahmood recently announced plans for new laws allowing police and local councils to close businesses for 12 months, up from the current three.
Authorities are also reviewing the inclusion of e-cigarette shops, barbers and car washes on the skilled worker sponsorship list to prevent criminals from obtaining visas.
Police and trading standards will receive £30 million to fund the fight against street crime as thousands of businesses are raided.
