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Government to give councils new powers to block 'fake' barbers and unwanted vape shops

Councils across England and Wales will be encouraged to use new powers to prevent unwanted betting and vape shops, along with "fake" barbers and other businesses suspected of being fronts for criminal gangs, under the government's new Pride in Place programme.

Vapes lining the window of one of Ipswich's many high street vape stores
Oliver Rouane-WilliamsIpswich.co.uk
Vapes lining the window of one of Ipswich's many high street vape stores

Why it matters: The move comes as the National Crime Agency has launched a crackdown on barber shops suspected of money laundering, with growing intelligence that gangs use the businesses to disguise proceeds from criminal operations as legitimate earnings.

The details: The new powers form part of the government's £5 billion Pride in Place programme announced today, which will provide funding to 339 "overlooked" communities across the UK.

  • The government said it will empower councils in England to say no to new betting shops, vape stores and fake barbers.

  • Councils will also be encouraged to use powers to seize boarded-up shops and save derelict pubs, allowing them to be repurposed for community benefit.

The big picture: The National Crime Agency has recently launched a crackdown on barber shops which it suspects of being fronts for international crime gangs. The agency says it has growing intelligence that gangs use barber shops for money laundering by falsely presenting the proceeds of criminal operations as if they were earnings from legitimate businesses.

Under the government's devolution bill, currently going through Parliament, councils will also get enhanced powers through an expanded "community right to buy" scheme. This will double the amount of time local groups have to raise money to purchase local assets from six months to 12 months.

What they can do: The new powers will allow councils to repurpose empty buildings for community benefit. Disused department stores or empty office blocks could be turned into new health centres or housing, the government has suggested.

Communities already have a "right to buy" which makes it simpler for them to acquire local assets such as village shops, pubs or children's centres. The government wants to include sports grounds in the list of assets covered by the expanded scheme.

What they're saying: Sir Keir Starmer said the investment represented a "huge investment" where those who "know their communities best" would decide how money would be spent.

The government said spending would only be approved if community groups, local organisations and social clubs have been involved in deciding how the money will be spent, unlike previous levelling up schemes where councils had to bid for funding.

For context: The announcement forms part of Labour's attempt to tackle the electoral threat posed by Reform UK, which some in government believe is partly driven by a loss of pride in local areas.

Areas were selected based on rankings using the Index of Multiple Deprivation and Community Needs Index, targeting neighbourhoods of around 10,000 population that are "doubly disadvantaged" by both high deprivation levels and weak social infrastructure.

The bottom line: The new powers could give councils additional tools to tackle businesses suspected of criminal activity while supporting genuine community assets, as part of the government's broader strategy to restore pride in local areas. However, it remains unclear what, how and when new powers will be given to councils to execute the Government's strategy.

Jack Abbott was approached for comment but opted not to respond.

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