Westminster council boss slams ‘plague’ of Oxford Street candy shops

The leader of Westminster City Council has repeated calls for the borough to end what he called a “plague” of candy shops on and around Oxford Street, many of which he claimed are being used to launder dirty money. Speaking at last week’s annual general meeting reception for the Westminster Property Association, Adam Hug said the Westminster Against Dirty Money Charter launched this month would “shine a fresh light on bad practices that are undermining the city”. The charter, overseen by the council, the New West End Company, the Heart of London Business Alliance and campaign group the Fair Tax Foundation, encourages companies to improve transparency around overseas ownership of property. It also calls for greater details of ownership structures, including tenants and leaseholders, and promotes reform of the business rates system to ensure empty shops are filled quickly. Hug said: “We all know the horrors of the war in Ukraine brought a long-overdue spotlight to some of the far-reaching acts of oligarchy investment and in particular how London has, sadly and too often, evolved into a laundromat for dirty money from across the world. “We know the problem goes beyond Russian oligarchs. There are many others who see some of the most exclusive or high-profile parts of Westminster as places to rinse or stash their money. We know that this is not only damaging to the reputation of our city but it drains vitality out of areas. “Opaque business structures and anonymous property ownership are damaging our high streets, with the plague of candy and tat shops that don’t turn a profit but are clearly dragging down Oxford Street short-changing the tax payer and fleecing our visitors.” The charter outlined the challenges the council has faced in ridding the capital’s famous shopping street of such outlets, which numbered more than 30 as of 2022. The charter document said: “It is highly unlikely that there was enough economic interest in American candy to sustain so many stores in such a small geography and with high city centre business rates – and £8m of business rates arrears from these stores suggested we were correct. “We regularly raided these stores and seized in excess of £650,000-worth of counterfeit and illegal goods. The occupier is almost always a shell company with no assets and a fabricated or patsy director, all listed on Companies House. As a result, when the council tries to take action to recover the arrears, the company dissolves. “As it has no assets, there is nothing to pursue for the business rates owed and we cannot pursue options to stop them ‘phoenixing’ and popping up as a new company as the director is either unrelated or doesn’t exist.” Real estate figures have spoken out against the problem before. At last autumn’s WPA lunch, its chair, Derwent chief executive Paul Williams – replaced this week by Landsec’s Marcus Geddes – said there is “no place for candy shops or similar sub-standard retail offerings” on Oxford Street. Williams said then: “This is meant to be the nation’s high street. It needs curating and managing properly.” At last week’s event, Hug said: “Our plans for our city are ambitious. But they are driven by a feeling that things have felt unfair for too many for too long.” You can read the Westminster Against Dirty Money Charter by clicking here. See more property, land and ownership information for the London Borough of Westminster>> To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Photo © Vuk Valcic/SOPA Images/Shutterstock