WIREDGOV

In a major report launched today (30th April), on the impact of organised crime on UK high streets, the Chartered Trading Standards Institute (CTSI) and Anti-Counterfeiting Group (ACG) have revealed some of the UK’s main hot spot areas where dodgy high street shops are concentrated.

The joint report – Hidden in Plain Sight: Tackling Crime on the UK’s High Streets – calls on the Government to urgently invest in enforcement capabilities – including Local Authority Trading Standards – to give them the powers and resources they need to tackle what is a widespread and growing national problem, linked with serious and organised crime (SOC).

The new data includes a heatmap of the UK along with the top 10 towns and cities that are perceived to be hot spots for organised crime groups (OCGs) operating out of high street shops including those offering counterfeit and potentially harmful goods – with Birmingham, Liverpool, and London filling the top three spots.

The map highlights the nationwide proliferation of dodgy shops on our high streets, and demonstrates the significant challenge for Trading Standards, the Police and other agencies in tackling criminal activity that is resource intensive, cross-border in nature, and employs incredibly complex storage and distribution networks to evade detection. 

The report also reveals the extent of organised crime on UK high streets and sets out concerns from the first national survey of Trading Standards on this issue. CTSI found that:

• Almost all (97%) of Trading Standards Officers were aware of suspected organised crime groups operating out of retail premises on their local high street(s)
• There was almost universal recognition (99%) that Trading Standards had seen an increase in the number of cash-intensive businesses opening on the local high street(s) since 2020
• In some areas, respondents suggested that as many as half of mini-marts and vape retailers; up to a third of “American candy stores”; and one-in-four fast food takeaways are estimated to have links with organised crime
• Almost three-quarters (72%) of Trading Standards professionals said that they had experienced intimidatory behaviour or had been threatened with violence in the course of their duties.

As the budgets of Local Authority Trading Standards (LATS) services are not ringfenced, LATS have seen resource cuts of up to 50% over the last decade, as local authorities juggle competing pressures. This has caused significant resource challenges for local services, as staffing is stripped to minimum levels. The decline in LATS resourcing - coupled with resource challenges for other key enforcement agencies, such as the Police – coincides with the rapid spread of dodgy shops across the UK, as well as the complex criminal networks that underpin the criminality.

Dodgy shops have a profound impact on the safety of the public and the viability of the legitimate businesses around them. Their illegal trade deprives the Exchequer of billions of pounds in taxes and duties each year; puts the health of consumers at risk through the sale of illegal products and selling products to children; and they can often undercut legitimate businesses by selling cheap, illegal and counterfeit goods, and avoid paying utility bills. Under such significant financial pressures, legitimate business may be forced to close permanently – only for the vacant premises to be potentially snapped up by the same or an equally illegitimate business. This phenomenon hollows out our precious high streets and communities and has a damaging impact on local economies.

In addition, dodgy shops often bring with them associated criminality that may include anti-social behaviour, theft and violent crime, drug supply, modern slavery, and child sexual exploitation.

The report outlines a ten-point plan to reclaim the UK’s high streets that, if the recommendations are acted upon by the Government, will empower Trading Standards to contribute more effectively to disrupt and help to dismantle SOC, which affects our high streets.

John Herriman, Chief Executive at CTSI, said: “It is clear from this research that serious and organised crime is endemic across the UK, and the threat posed by illegitimate high street businesses is having a significant impact on the work of Trading Standards, and our ability to protect consumers and maintain the level playing field for legitimate business. 

“Local Authority Trading Standards services have faced damaging funding cuts of up to 50% over the past decade, with key enforcement partners experiencing similar resourcing challenges. While Trading Standards is not the main or only agency dealing with these issues, our report sets out the significant enforcement challenges from organised criminality operating in shops across UK high streets, and outlines a ten-point plan to strengthen and empower enforcement capabilities to better tackle the criminality.

“We recognise that the Government is focussed on this issue, but it must urgently bring together and properly invest in enforcement agencies – including Local Authority Trading Standards – to give us the powers and resources needed to tackle what is a widespread and growing national problem.”

David MacKenzie, Chair of CTSI, said: "The spread of illegitimate businesses on our high street has spread across the UK's cities, towns and villages - and Scotland is no exception. Such criminals have a serious impact on the safety of local communities and undermine legitimate businesses. Scottish Trading Standards services must be empowered by introducing enforcement options that are not available in Scotland - such as Closure Orders - which have been used to great effect in other areas of the UK. The Scottish Government must urgently give enforcement agencies - including Local Authority Trading Standards services - the resources and powers they need to tackle the issue."

Chloe Long, Deputy Director-General at ACG, said: “We strongly support the vital work of Trading Standards and are increasingly concerned by the sustained decline in resourcing over recent years. Across the country, highly committed officers and teams are ready to partner with us and our members to tackle counterfeiting on the high street, yet their efforts are too often constrained by limited capacity. At the same time, counterfeiting has become increasingly sophisticated and deeply embedded within serious organised crime networks. Addressing this growing threat is essential to protect consumers, legitimate businesses and local communities, and requires renewed investment and strengthened resources. Our recommended ten-point plan sets out clear, practical measures to empower Trading Standards teams to deliver effective, intelligence-led enforcement - helping to restore confidence in UK high streets and support sustainable economic growth.”