A Labour government will launch a crackdown on “dodgy” candy stores if it wins the next election, as part of plans to revitalise Britain’s high streets.
There are more than 20 of the US-themed sweet stores on Oxford Street, London, alone. Many of them appeared during lockdown as high-street stalwarts closed down and landlords faced the prospect of long-term empty shops.
While some of the stores are legitimate, others are under investigation by Westminster city council for tax evasion and selling counterfeit goods.
Some of the shops offer to pay minimal rents and take on the business rate liability but then avoid paying the business rates they owe.
Westminster city council is understood to be chasing unpaid business rates of about £9m left by these stores.
The shadow financial secretary, James Murray, said Labour in power would work with councils to support local high streets.
Murray said: “Millions of us will be heading to the shops in the coming days totake advantage of the Boxing Day sales. However, the sharp rise in dodgy candy stores has been blighting high streets and ripping off the taxpayer.
“We are calling on the government to work with councils, including Westminster city council, to incentivise legitimate businesses to open up on the high street – rather than these shell companies that avoid paying their bills and commit other offences.”
He has urged the government, before voters head to the polls next year, to trial a “new shops bonus” in Westminster for legitimate businesses opening up on the high street, which would provide three months’ worth of rate relief.
Refreshing Britain’s high streets has long been a part of Labour’s plans to drive economic growth. The party has a five-point plan to “reverse 13 years of decline and revitalise local high streets” while tackling late business rate payments.
At least £1m worth of allegedly illegal and counterfeit goods from the candy stores and souvenir shops on Oxford Street have been seized since the council started its operations more than a year ago.
Meanwhile, the council is working with Trading Standards on an investigation into some of the shops amid allegations some have evaded £8m worth of business rates.
Labour has also pledged to use the powers under the Economic Crime Act to toughen up the identity requirements for someone setting up a new company, to help councils chase down businesses that do not pay their bills.
Marks & Spencer’s chief executive, Stuart Machin, warned in April that London was “on life support”, in part because of the “proliferation of tacky candy stores” on Oxford Street, which had left the city “a national embarrassment”.
Adam Hug, the leader of Westminster city council, added: “Like councils right across Britain we want to restore our high streets as the proud centres of local shopping and social life they should be.
“We have reduced candy stores on Oxford Street by a third, but there is only so much we can do without national government playing its part too.
“That is why giving us these new powers would be a very welcome and important change to help us go much further, so we can make sure London’s West End has the buzz it deserves this Christmas and beyond.”
A government spokesperson said that where necessary the UK already had “some of the strongest controls in the world to combat money laundering” and was “continuing to strengthen” its approach further.
This article was amended on 27 December 2023 to include a comment from a government spokesperson.
