Cracking down on economic crime and corruption key to delivering government’s growth mission, new Parliamentary report finds

A new Parliamentary report released today has found that tackling corruption and  economic crime, which by some estimates costs the UK up to £350 billion annually, could unleash a wave of economic growth, increase public revenues, and improve trust in public institutions.

The report, from two All Party Parliamentary Groups, on Anti-Corruption & Responsible Tax and Fair Banking, sponsored by the UK Anti-Corruption Coalition, is entitled Clean Foundations for Growth: Unlocking Economic Opportunity by Tackling Economic Crime.

Download the report here.

It is the first known attempt to consolidate existing research on economic crime and corruption issues, from money laundering and covid-19 procurement through to political integrity and offshore tax evasion, and view it through the lens of economic growth. The ground-breaking report outlines how cleaning up the UK's economic system is not only a national security imperative but a key economic opportunity to help deliver the government's growth mission. 

The two APPGs are constituted by over 80 Parliamentarians, and the UK Anti-Corruption Coalition represents over 30 civil society organisations, The report itself is the product of extensive consultation across parliamentary, private sector and civil society groups.

Key Findings:

Lack of Transparency and Weak Oversight are Holding Back British Business 
Two-thirds of UK businesses are affected by economic crime, with firms spending over £21,000 per hour on anti-financial crime compliance. New data reveals that a quarter of all current Serious Fraud Office (SFO) cases involve companies in the UK's own Overseas Territories. Simplifying rules and improving transparency could cut costs and attract investment. 

Tax Enforcement and Asset Recovery Could Raise Billions 
Cracking down on offshore tax evasion, tightening scrutiny of tax reliefs, and incentivising asset recovery could bring in substantial revenue. For example, the SFO returned £3 for every £1 invested from 2019–2024. 

Fragmented Oversight Undermines Government Efficiency 
At least 20 departments and agencies are involved in tackling illicit finance, leading to duplication and inconsistent priorities. Reforming this patchwork could boost efficiency and accountability. 

Economic Crime Distorts Markets and Undermines Fairness 
Money laundering could have inflated UK property prices, and tax evasion allows unproductive firms to outcompete legitimate businesses. Clamping down would foster fairer, more competitive markets. 

Public Trust and Good Governance Are at Risk 
Only a third of Britons believe politicians prioritise the public interest. Improved transparency and safeguards against lobbying influence are essential to rebuilding trust and securing stable growth. 

The report calls on the government to align its growth mission with a bolder crackdown on economic crime and corruption, arguing that doing so is essential to restoring fiscal stability, attracting investment, and ensuring long-term and fairly spread prosperity. 

Rachel Blake MP, Member of the Treasury Select Committee and Co-Chair of the APPG on Anti-Corruption & Responsible Tax said:

“Clean Foundations for Growth sets out a clear, practical roadmap to tackle economic crime and strengthen the UK's position as a global financial leader. As the MP for the Cities of London and Westminster, I've seen first-hand how fair markets and strong institutions underpin investor confidence, local business success, and public trust. This report rightly recognises that financial transparency, smart regulation, and rigorous enforcement aren't just safeguards—they're the building blocks of sustainable growth. In an uncertain world, the UK's clarity of rules and integrity of governance can be a true competitive advantage"

Yuan Yang, MP Member of the Treasury Select Committee and APPG on Anti-Corruption & Responsible Tax member, said:

"The government's growth mission rests on building a tax system that is fair, efficient, and capable of funding the public investment our economy needs. Yet economic crime, tax evasion, and financial opacity continue to undermine this. Tackling these challenges is not about punishing success or over-regulating, it is about levelling the playing field, restoring integrity, and ensuring that the rules of the game apply equally to all."

Peter Munro, Policy Manager of the UK Anti-Corruption Coalition, said:

"Economic growth is the mission of this government. Economic crime should not be the means to get there. Allowing black markets, dirty money, and organised crime gangs to flourish in the UK will do nothing to help the pockets of ordinary working people. This excellent report makes a clear case that our economy cannot afford more financial crime and we must make the UK the anti-corruption capital of the world."

Aminah Samad, Director of Financial Crime at UK Finance said:

"Tackling economic crime is a key priority for the financial services sector, which is at the forefront of efforts to tackle the threat it poses. This new report includes helpful recommendations to help close down vulnerabilities and strengthen our defences. Our sector supports an agile system which better targets priority risks and threats, delivering improved outcomes for customers, businesses and the economy whilst protecting the UK's reputation as a global financial centre."

Download the report here.

Statistics Snapshot

Scale and economic impact

• £290–£350 billion/year: Estimated cost of economic crime to the UK – equivalent to 17.5% of GDP, or the entire annual education and health budgets combined.
• £140 billion/year: Estimated cost of fraud to UK businesses.
• £157.8 billion/year: Estimated private sector fraud losses.
• £50.2 billion/year: Estimated public sector fraud losses.
• £39.8 billion/year: UK's annual tax gap.
• £1.8 billion lost to tax avoidance.
• £5.5 billion lost to tax evasion. 

Tax and Transparency

• £204 billion: Cost of 104 non-structural tax reliefs in 2022–23 (25% of all UK tax revenue).
• HMRC has not fined a single enabler of offshore tax evasion in 5 years.
• HMRC prosecutions of tax evasion enablers have dropped 75% over 5 years.
• £1 billion – amount owed by Roman Abramovich to HMRC, including tax bill and potential penalties.
• 25% of all current Serious Fraud Office cases involve companies from the UK's own Overseas Territories.  

Business & AML Compliance

• UK banks spend £5 billion/year on financial crime prevention.
• UK firms spend £38.4 billion/year on AML compliance.
• Equivalent to £21,400/hour in AML-related costs.
• KYC compliance can account for more than 50% of banks' total compliance costs.
• 64% of UK businesses – Report experiencing fraud or economic crime (vs. global average of 46%).

International & National Security Risk

• UK offshore jurisdictions deprived 79 countries of £250 billion over 30 years.
• UK met only 36% of OECD best-practice criteria on conflicts of interest (OECD avg: 76%).
• £27 million – amount extorted from 149 UK victims by Russian cyber criminals before NCA's Operation Destabilise disrupted criminal network. 

Law Enforcement & Asset Recovery

• 17.5% of GDP – equivalent cost of economic crime, 0.5% of GDP, equivalent expenditure on economic crime law enforcement
• £3 return per £1 spent: SFO performance (2019–24).
• £27.50 saved per £1 spent: ROI of the Public Sector Fraud Authority in its first year.
• 25% of current SFO cases involve the Overseas Territories.  

Property and Dirty Money

• 170+ UK properties worth £2.5 billion bought with suspicious wealth via secretive trusts.
• Property market prices may be inflated by up to 5% due to money laundering. 

Government and Procurement

• £30.7 billion in COVID-19 contracts awarded non-competitively.
• £4.1 billion in VIP lane awards went to politically connected firms.
• £925 million in inflated prices via VIP lane PPE contracts.
• £1 billion in Covid-19 PPE supplied via VIP lane deemed not fit for use.