Overview

• Britain’s illicit economy is valued at around £260 billion and deprives HMRC of an estimated £2.2 billion in tax revenue each year.
• Home Office raids on suspected illegal workplaces have surged, resulting in a 51% increase in arrests between July 2024 and May 2025.
• Officials say a significant portion of the black market’s growth stems from undeclared migrant labour recruited through informal networks.
• Investigations reveal migrants often receive as little as £30 per day and are housed in employer-provided accommodation.
• Advocates caution that enforcement must be matched by stronger safeguards for vulnerable workers to prevent ongoing exploitation.