Labour MPs have called for a “crackdown” on “dodgy” vape, barber and souvenir shops, which a minister warned “undermine the legitimate” firms on Britain’s high streets.
Melanie Onn said she “really must press” the Government for long-term action to tackle these shops, which MPs heard had links to tax evasion and money laundering, and Joe Powell said well-known London streets such as Portobello Road and Notting Hill Gate are “blighted”.
Business and trade minister Gareth Thomas told MPs that the National Economic Crime Centre (NECC) had visited almost 400 premises during a three-week operation in March, freezing several bank accounts.
Mr Powell, the MP for Kensington and Bayswater, told the Commons: “Small businesses across my constituency on our high streets from Earls Court Road to Queensway, Notting Hill Gate and Portobello Road are fed up of being blighted by candy shops, low-grade souvenir shops, Harry Potter shops and, yes, even barber shops, with accusations of VAT and business rates evasion, and even links to money laundering and serious organised crime.”
He urged Mr Thomas to say “what steps” the Government is taking “to crack down on these operations and create a legitimate level playing field for our small businesses”.
The minister replied: “We’ve been working with colleagues in the Home Office and the National Crime Agency (NCA) to take action to crackdown on illegitimate businesses that threaten to undermine the legitimate ones that are on all of our high streets.
“In March, the NECC co-ordinated a three-week crackdown against barber shops and other cash-intensive businesses where there were concerns, visiting almost 400 premises, securing freezing orders over a series of bank accounts totalling more than £1 million.”
In response, Ms Onn said: “I really do need to press him because my constituents in Great Grimsby and Cleethorpes are equally as fed up as (Mr Powell) of seeing high streets dominated by dodgy vape shops, unlicensed barbers.”
She said “some of them are legitimate” but asked: “Is he working closely with the Home Office to try and tackle this blight because I think we probably need a national strategy, not a three-week operation?”
Mr Thomas said he recognised “a concern up and down the country” and added the NCA and Home Office “are seeking to take action against illegitimate business”.
He said a Government commitment to bolster police forces with 13,000 extra officers and special constables, backed by an uplift to forces’ “spending power” of 2.3% per year unveiled in Wednesday’s spending review, “will help”.
In a viral video, Conservative shadow justice secretary Robert Jenrick claimed “weird Turkish barber shops” were “chipping away at society”, along with fare evasion, when he caught passengers allegedly “bumping” London Underground ticket barriers on camera.
“The state needs to reassert itself and go after lawbreakers,” he said.
Sadiq Khan is driving a proud city into the ground.
— Robert Jenrick (@RobertJenrick) May 29, 2025
Lawbreaking is out of control.
He's not acting. So, I did.👇 pic.twitter.com/MZSVQ3Sdak
Conservative MP Graham Stuart said that if a book which Labour MP for Central Ayrshire Alan Gemmell is writing were a “political thriller about fighting for small business”, then he was “sure it features five heroes on the front bench opposite, doing everything they can to promote small business”.
Ministers laughed and pointed at Tory MPs when Mr Stuart added: “Readers will ask ‘who is the villain of the piece?'”
The Beverley and Holderness MP suggested the villain would be Rachel Reeves, “the Chancellor of the Exchequer who is doing everything possible to undermine business – 276,000 people having lost work since the autumn statement”.
He asked: “When will the ministers, the heroes of this story, fight against the Chancellor who’s getting so much so wrong?”
Mr Thomas said: “It’s a little while since I’ve been called a hero by (Mr Stuart) but I’m glad that I’ve finally had some recognition from him in that regard.
“I don’t think the Chancellor of the Exchequer is a villain at all.
“Indeed, I think the spending review that she announced yesterday will help to unlock investment in our high streets and in our small businesses up and down the country – the record investment in research and development, the record investment in infrastructure, and the additional capacity to the British Business Bank will help to unlock billions of pounds of new investment and many more job opportunities across the country.”
Labour former minister Liam Byrne later called for “a plan to cut industrial energy costs now”.
The Commons Business and Trade Committee chairman said: “As our committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now.
“When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?”
Business Secretary Jonathan Reynolds replied: “The very significant increase in industrial energy prices under the terms of the last government are a significant issue for our competitiveness, and yes, that is something we’re seeking to address.”
