High Street Shops: Illicit Activity

We have 10 or 12 people, including the Minister and Opposition spokespersons, wishing to speak. There are lots of people here, and I am sure there will be lots of interventions. I will therefore impose a four-minute limit on speeches, but that will have to be reduced if we have too many interventions. I have fired the starting gun.

I beg to move, That this House has considered the matter of tackling illicit activity in high street shops. It is a real pleasure to serve under your chairship, Mr Dowd. Before I start, I want to put on the record my thanks to my hon. Friends the Members for Great Grimsby and Cleethorpes (Melanie Onn) and for Leigh and Atherton (Jo Platt), who have been leading the dodgy shops campaign in Parliament. I am pleased to see that there are 50 MPs working to support this important issue. My hon. Friend the Member for Great Grimsby and Cleethorpes could not make it here today, but I will raise some of the issues that she asked me to raise. High streets are at the centre of our communities. When our constituents look at them, they judge how our towns feel and how they feel about our towns. In Halesowen constituency, people want to see our high streets succeed. We have many independent and successful shops such as Bella’s Beautiful Things in Halesowen, Betty Stitchkit in Quarry Bank, and Cradley Heath DIY in Cradley Heath. We also have fantastic community groups that work hard to make our towns beautiful, such as Halesowen in Bloom and Cradley Heath and Old Hill in Bloom, whose volunteers do fantastic work. But the truth is that, as the challenges to retail have increased, old established shops are closing and new shops are popping up in their place: vape shops, mini-markets and barbers. Although the majority of those shops are perfectly legitimate, there is increasing evidence that what the public suspect is true: many are involved in money laundering, counterfeit goods and other criminality. In fact, the Chartered Trading Standards Institute, whose members are on high streets every day, tells me that in some areas up to half of mini-markets and vape shops have links to organised crime.

It is shocking that, in some hotspot areas, 50% of convenience stores or vape shops are linked to organised crime. My constituents in Derby South are really fed up with that, and so are legitimate business owners. Does my hon. Friend think it is time to crack down and shut down these dodgy shops once and for all?

Absolutely. My hon. Friend is completely right that we need to tackle those dodgy shops. I am pleased that the Government have made a range of announcements on that, but I will make further suggestions for where we might go even further. We see dodgy shops in Derby, and we do not just have to take the word of the CTSI. My constituents saw with their own eyes on the BBC in April that there was drug dealing in the open on Cradley Heath High Street.

My hon. Friend is right that dodgy shops and mini-marts are often a front for organised crime, particularly drug dealing, but also for the sexual and criminal exploitation of children, which we sadly know all too much about in Rochdale. I am delighted that the Government have listened to experts such as Rochdale trading standards on extending closure orders from three months to a year, and that they are looking closely at doing that. But there is also a big issue in my local shops of drug paraphernalia being sold next to sweets, and of drugs in resealable bags designed to look exactly like sweet wrappers. Does he agree that the Government should look at the Misuse of Drugs Act 1971 so that trading standards can intervene on this?

I am glad my hon. Friend raised that issue. He shared with me some photographs of paraphernalia that looks just like a packet of Skittles or a packet of sweets. It is completely unacceptable that we allow businesses to market these things, which only encourage illegality, to children. In my constituency, an undercover reporter was able to buy cannabis, cocaine and prescription drugs over the counter right in the centre of our towns. Although the police have taken action and there have been a number of arrests, we should not have to wait for the BBC to expose a crime for action to be taken. My constituents ask, “Why is this shop, which has been so publicly exposed as dealing drugs, still open?” I do not yet have a satisfactory answer.

I am grateful to the hon. Gentleman for securing this debate. On 17 July 2025, trading standards closed an illicit vape shop on Honiton High Street and seized a large amount of illicit tobacco. Does he think that this change in the law, which allows the closure of shops for 12 months rather than just three, will mean that these shops might close altogether?

Yes. It is a really positive development, because it allows His Majesty’s Revenue and Customs, trading standards and the police to investigate properly in those 12 months and build a case so that they can go after not just the shop but the people behind it. On Cradley Heath High Street, there is something that sits right in our faces: we have 12 mini-markets and vape shops right opposite the largest Tesco in the area. Although last year the Chartered Trading Standards Institute ranked Birmingham as the country’s No. 1 hotspot for dodgy shops, it is undeniable that the problem is going over the border into the Black Country and affecting our area.

Hotspot teams are looking at this issue in certain areas, but does my hon. Friend agree that it is also a problem in rural and coastal areas, such as mine in Falmouth? The problem is spreading across the country—he talks about it moving into the Black Country—so perhaps we should look at extending the hotspot areas much wider.

My hon. Friend makes a really good point about the challenges that seaside towns face. I agree that this blight is affecting the whole country, so we need to look at all the hotspots. The impacts of this problem are really big. Organised crime costs the UK £47 billion each year. Money from the economy that could be invested in the private sector or public services instead goes into organised crime, funding violence, people smuggling and other criminal activity. The local impacts are really serious, too. Legitimate traders are seeing footfall decrease, as law-abiding people avoid towns. Parents are worried that their children can buy vapes and laughing gas under age, in the open. Local residents fear for their safety when they see knife crime and other criminality spilling out of these businesses. Our high streets are the heart of our towns, and our communities care deeply when crime starts to encroach upon them. However, there has been real progress. I welcome what the Government have achieved in the last few months. There has been a series of very positive announcements, responding to the calls from our communities to do something about these dodgy shops.

Since the recent fire on Union Street in my constituency, there has been a lot of focus on illicit vape shops, and there have been calls for further legislation. We will see what the investigation says, and then action may need to be taken. Does my hon. Friend agree that this is about not just legislation but enforcement and having the resources available? I would welcome extra resources to ensure enforcement can take place.

My hon. Friend makes a really important point. Local authority trading standards were underfunded and under-resourced by between 30% and 40%, according to some estimates, during the 14 years of Conservative government. Local authorities and the police need resources to tackle this crime. I will give some good statistics. The National Crime Agency’s Operation Machinize has led to 3,000 premises being raided and close to 1,000 arrests. The £30 million that the Government are investing in tougher enforcement with the new high street organised crime unit is also welcome. There are many issues that enable these shops to operate, so it is important that all agencies work together: the Home Office, trading standards, the NCA, HMRC, immigration enforcement and local police. Immigration enforcement is important because, as has been mentioned before, we see evidence that asylum seekers are being employed and exploited in these shops. They are sometimes being paid only £4 an hour, which is completely unacceptable. The new unit gives me real hope that we can achieve co-ordination, and that organised crime groups will not fall through the gaps between agencies and will face the full force of the law. We have talked about resources. Seventy-five new police officers have been recruited, and there are extra resources for customs and trading standards to prioritise the work. The tougher enforcement standards, including the doubling of closure orders to 12 months, are vital for this work. When tackling serious organised crime, the National Crime Agency employs the 4P approach: pursue, prevent, prepare and protect. The Government have taken positive steps to enable the authorities to pursue offenders, with more co-ordination, resources and tougher enforcement. There is scope to do more to prevent the opportunities for these dodgy businesses to open in the first place. There is a good example in the Netherlands, where the Bibob Act allows public authorities to conduct integrity checks on individuals and businesses before granting licences and permits.

My hon. Friend is making an excellent speech on an important issue. As he will know, the Tobacco and Vapes Act 2026 recently came on to the statute book, which I hugely support as a member of the all-party parliamentary group on smoking and health. There is a licensing scheme under that Act, enabling local authorities to have more control over shops that sell products such as tobacco and vapes. There will be a clear method to facilitate the reduction of those shops on our high streets. Does my hon. Friend agree that it is important for the Department of Health and Social Care to get on with the consultation on that licensing scheme as soon as possible?

I agree that it sounds like a very helpful proposal. On the subject of permits and businesses, there is much more the Government can do to restrict the permitting of high street bookmakers, which many Members have spoken about. In the Netherlands, public authorities are allowed to conduct integrity checks on individuals and businesses before granting licences and permits, and local authorities have the power to refuse applications if they think there is a serious risk that a permit could be used for criminal activities. I can see the benefit of that, as the police or other intelligence agencies could advise whether individuals are linked to organised crime, or whether it is reasonable to assume that 12 mini-markets and vape shops in one small town centre are operating legitimately.

My hon. Friend mentioned mini-marts. We had none in Carlisle 12 months ago, and now we have at least 12 or 15. They are all distinguished by having wrappered windows that cannot be seen through. There is a presumption in planning guidance that windows should be active, whereas these are obviously inactive. Does my hon. Friend think that more needs to be done to enforce existing planning laws to ensure that these shops do not open or, if they do, that they are closed down for contravening planning guidelines?

My hon. Friend makes an important point. Why are they wrapping the windows? The first question must be: what are they trying to hide? We want our town centres to be welcoming, warm and open. That practice is completely against that type of approach. Could the Minister tell me whether the Government are considering similar measures to the Dutch Bibob Act? There are also far too many loopholes in Companies House, which BBC research reveals is wide open to abuse. Our dodgy shops group is proposing that greater powers be given to Companies House to identify and clamp down on fake company directors, with escalating fines or a “three strikes and you’re out” system.

In my patch in Thurrock, we unsurprisingly do not have a lot of London tourist tat shops, which are synonymous with dodgy directors changing hands every few weeks. We do, however, have a number of really suspect home goods shops, which sell goods that are often faulty. People have no recourse to a refund if the products go wrong, because the shops change hands every three to six months. Does my hon. Friend agree that we must do more to crack down on such evasion of responsibility by businesses changing hands through Companies House?