London Daily

Focus on the big picture.
Thursday, Apr 09, 2026

Government denies claims it has scrapped crucial economic crimes bill

Government denies claims it has scrapped crucial economic crimes bill

Ministers criticised for not tackling London’s reputation as Russian money-laundering hub

The government was forced to deny claims that it had scrapped a crucial economic crime bill on Wednesday, as MPs from across the house rounded on ministers for failing to tackle the UK capital’s “Londongrad” reputation as a money-laundering hub used by Russian oligarchs, criminals and kleptocrats.

The scathing comments in the House of Commons follow the shock resignation of junior minster Lord Agnew on Monday, who revealed in his departing letter that the government had only last week made a “foolish” decision to kill off the bill during the next parliamentary year.

As recently as December, prime minister Boris Johnson promised a “year of action” on fraud at a summit organised by US president Joe Biden, saying the government would target “the illicit finance that undermines democracy everywhere, strengthening our law enforcement powers to go after the criminals who abuse our corporate structures”.

Agnew had also hit out at the government for failing to take action against Covid loan fraud, which critics have said could cost the taxpayer billions of pounds. The damning accusations pushed Rishi Sunak to assure that the government would “do everything we can” to recover stolen funds. “I’m not ignoring it, and I’m definitely not ‘writing it off,’” the chancellor said on Twitter on Wednesday.

Figures from HMRC show an estimated £5.8bn has been lost due to fraudulent claims for furlough and other business relief schemes. Reports suggest HMRC has off £4.3bn stolen of that sum as unrecoverable. However, the government has refused to confirm the figure.


MPs said the economic crime bill was needed to tackle the Covid loan fraud issues raised by Agnew, and the use of London as a money laundering destination by kleptocrats from Russia and other regimes.

Campaigners had been pushing for the bill to be included in the next parliamentary session, which run s from later this year into 2023, and will be announced at the next Queen’s speech. It was expected to include reforms of Companies House, the loosely policed UK company registry, and rules requiring those holding property through offshore shell companies to declare their identities.

Paul Scully, the parliamentary undersecretary for the Department for Business, Energy and Industrial Strategy, was called to the Commons to answer an urgent question on the status of the bill. He said: “There has been nothing pulled at all.” But Scully said no legislation would be put forward before the yet-unscheduled Queen’s speech, which opens a new parliamentary year.

The government has not yet set a date for the speech, but last year held the state opening in May.

It comes as Downing Street considers sanctions against Russia if Moscow follows through on an invasion of Ukraine.

“Up to 50% of money flowing through Russian laundromats – often used for tax avoidance stolen public funds and to launder moneys derived from organised crime – flow through UK shell companies,” said Conservative MP Kevin Hollinrake, who initiated the debate by tabling the urgent question.

“This is not a notional white collar offence,” he said added. “It affects real people in very tangible ways. Terrorists and drug dealers depend on it to launder and legitimise their money through UK banks, companies and properties.”

SNP MP Alison Thewliss urged the government to set a date for the introduction of the economic crime bill, saying the lack of action suggested complacency on behalf of prime minister Boris Johnson’s Cabinet. “Why is it that this government is so unconcerned that the UK is being deemed “Londongrad”, notorious for laundering of dirty money?”

John Penrose, the Conservative MP for Weston-super-Mare also accused the government of moving too slowly. “The well of excuses after three or four years of promising this piece of legislation, or its related pieces, has now run dry. And it is absolutely essential for the credibility of his country and of this government, particularly the time when we have a crisis in Ukraine, and all sorts of Russian oligarchs waiting to move money into this country if they possibly can … that we do not back away from the central piece of legislation,” he added.

Labour MP Chris Bryant said the UK’s rules, as they currently stand, are too “soft touch” and that “if we want to give a strong message to Russia in particular at this moment we’ve got to move swiftly not say ‘oh, I can’t possibly come into what legislation we might be thinking of in the future.’”

But Scully refused to be pulled into speculation about the timing of the bill’s introduction. “What I can’t do is pre-empt what Her Majesty will say in the Queen’s speech,” he said, adding that she would “set out the government’s programming in due course,.”

Newsletter

Related Articles

0:00
0:00
Close
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
×