The Fed backs crackdown on rogue traders

The Federation of Independent Retailers (the Fed) has welcomed new powers proposed by the Home Office to tackle illicit trading on the High Street.

The move follows months of lobbying by the Fed and other retail trade bodies to highlight the scale of the trade in illicit and black market goods – and its impact on legitimate retail.

The Home Office announcement includes legislation to give police and local authorities extra powers to close down businesses associated with illicit trading, including vape stores, barbers and nail salons.

The new legislation is expected to come into force later this year and will apply to England and Wales.

The Fed’s National President Hetal Patel said: “As responsible retailers, Fed members are hit hard by rogue trading and organised crime undermining legitimate retail.

“It diverts trade from those who play by the rules, but also puts honest, law abiding shop owners at risk of being unfairly tarred with the same brush, undermining the close relationship we have with our customers.

“The Fed has identified concerns about this challenge for a number of years, but particularly in recent months, including in a meeting I had with the Crime and Police Minister Sarah Jones MP at the Home Office in December. Fed members across the country have also met with their local MPs and PCCs to raise the issue and call for action.

“We are glad that the government is taking this matter forward and welcome the message this will send to those who break the law.”

At the moment, shops believed to be involved in illegal trading can be closed for up to six months, but in many cases they reopen before the police have completed their investigations. Under today’s announcement, maximum closure orders look set to be doubled after consultation with relevant parties.

Announcing the proposed legislation, Home Secretary Shabana Mahmood said: “High streets across the country have been hijacked by criminal gangs operating in plain sight – running vape stores, dodgy barbers, and nail salons to launder their dirty money.

“I have launched a nationwide crackdown to raid and close thousands of illegal businesses, arrest bosses and seize their dirty cash. But I will go further – introducing new laws to close these shops for good and put criminal bosses behind bars.”