Despite increased enforcement actions, nine out of 10 shops raided for illicit tobacco, cigarettes, and vapes in 2025 remained open for business, according to an analysis of government data. Labour launched over 4,000 raids in the past year, a nearly 1,000 increase from 2024, yet fewer than 10% of offending premises faced temporary closure.
Home Secretary Shabana Mahmood had pledged a significant crackdown on "dodgy high street shops" in May, aiming to hit organized crime gangs with raids, closures, and cash seizures as part of a £30 million initiative. Prime Minister Andy Burnham also committed to revitalizing "hollowed out high streets." However, the data indicates that only 8% of businesses involved in illicit trade were temporarily shut down last year.
In one instance, Newham local authority seized illegal products from 94 shops in 2025 but did not close any of them. This situation persists despite evidence from Greater Manchester Police showing a correlation between shutting down criminal establishments and a decrease in crime. Their analysis found that closing 206 such outlets led to a 45% drop in public order offenses, a 69% reduction in vehicle crime and violent crime, and a 58% decrease in burglaries.
Critics have voiced concerns about the effectiveness of the current approach. Shadow Home Secretary Chris Philp stated that Labour's actions do not constitute a genuine crackdown, as closing less than 10% of these shops is insufficient to address the blight on high streets. He argued that Labour's tax policies and business regulations have pushed legitimate businesses out, creating an opening for illicit vendors.
Zia Yusuf, Reform UK's home affairs spokesperson, described the raids as "theatrical" if they do not result in operational closures. He emphasized that businesses selling illegal goods should not be permitted to continue trading, citing the link between shutting down criminal establishments and reduced crime rates.
Some Labour MPs have also called for a stronger focus on this issue. Melanie Onn, Labour MP for Great Grimsby and Cleethorpes, highlighted how these criminal shops exacerbate the decline of high streets by displacing legitimate retailers and deterring new businesses. She urged that ending their influence be a priority in the Prime Minister's plans for Britain.
The findings were compiled by the think tank The Centre for Social Justice (CSJ) in its report 'Hijacked High Streets.' The CSJ has recommended the establishment of a dedicated agency, similar to the FBI, to combat serious organized crime. They also proposed a stringent licensing system for certain shops and new powers for immediate closure of criminal establishments for up to 12 months. The report further suggested a permanent reduction of VAT for pubs and hospitality venues to 15%, funded by welfare cuts.
In response, Home Secretary Shabana Mahmood reiterated the government's commitment, stating, "Criminal gangs have blighted our high streets and undercut honest businesses for too long. This report shows the scale of the challenge we face in restoring them." She announced a nationwide crackdown aimed at closing thousands of shops and seizing illicit profits, with new legislation to permanently shut down offending businesses and empower police and trading standards. She also noted the role of a new National Police Service in allowing local forces to concentrate on community service.
Newham Council did not provide a comment when reached for a statement.