Labour is set to tackle the surge of dodgy American-style candy stores that are sidestepping taxes, a trend seen as a sign of the traditional high street’s decline. With over 20 such stores on London’s Oxford Street alone, Labour is aiming to curb their impact.
According to Labour, these sweet shops often operate through shell companies with fictitious directors, evading business rates and symbolizing the struggle of the conventional high street. Westminster City Council is actively pursuing approximately £9 million in unpaid business rates from 26 Oxford Street shops.
The council has also seized £1 million worth of counterfeit and illegal goods in the last 18 months, including unsafe vapes. Shadow Treasury minister James Murray insists that more measures are needed to encourage the growth of legitimate businesses.
Murray proposes a new shops bonus, granting a three-month business rates holiday to stores. Additionally, Labour suggests strengthening ID requirements for new company registrations, providing councils with tools to pursue businesses that neglect their financial obligations.
Murray emphasized, The rise in dodgy candy stores has been blighting high streets and ripping off the taxpayer. We are urging the Government to collaborate with councils, such as Westminster City Council, to incentivize the establishment of legitimate businesses on the high street instead of these shell companies that evade payment and engage in other offenses.
In government, Labour would replace business rates with a new system and utilize powers in the Economic Crime Act to crack down on rip-off businesses, ensuring proper checks when companies are being established, he added.
