The government has launched a new specialist unit to target high street businesses suspected of being used to launder criminal cash, including vape stores, barbers, mini-marts and sweet shops.

The £20m National Crime Agency cell will coordinate investigations and raids into UK retail outlets believed to be acting as fronts for organised crime.

The Home Office said the unit will focus on businesses suspected of laundering money, selling counterfeit goods, enabling tax evasion, supporting illegal working and, in some cases, being linked to drug supply.

The NCA and police forces in Greater Manchester, the West Midlands, Kent and Essex will recruit 75 officers to support the crackdown.

Trading standards teams will also receive a further £6m to strengthen enforcement in local authorities considered most at risk.

The funding will come from a £30m pot set aside by chancellor Rachel Reeves in last November’s Budget.

The NCA estimates at least £12bn of criminal cash is generated in the UK each year, with around £1bn laundered through high street businesses including mini-marts, barber shops, vape stores and sweet shops.

According to trading standards, as many as half of convenience stores and vape retailers in some areas are suspected of having links to organised crime.

In some locations, up to a third of American candy stores and one in four takeaways are believed to be acting as fronts for criminal activity.

The government said officers will receive new training to help them identify suspicious businesses, improve compliance checks and strengthen enforcement action.

A new High Street Organised Crime Unit has also been established to bring together government departments, police and trading standards. It will be chaired by security minister Dan Jarvis.

Home secretary Shabana Mahmood said criminal gangs had “exploited our high streets to launder their dirty money and undercut honest businesses”.

She added that the government was “hitting back with a nationwide crackdown” to shut down fronts, seize criminal cash and remove organised crime from high streets.

The announcement follows a series of coordinated raids under the NCA’s Operation Machinize 2, which targeted cash-intensive businesses operating in the grey economy.

The agency helped plan raids on more than 2,700 premises, leading to 924 arrests.

Police also seized more than £10.7m in suspected illegal proceeds, alongside 111,000 illegal vapes, 70kg of cannabis and 4.5m illegal cigarettes.

Labour pledged to crack down on “dodgy” high street outlets, including US candy shops, in its general election manifesto amid growing concern over tax evasion, counterfeit goods and sham businesses.

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