Government backs fresh drive to tackle drugs, immigration and fraud gangs after data shows surge in organised illegal activity

Between 25,000 to 30,000 criminals are involved in the “long tail” of a serious organised crime business in Britain that is worth more than £30bn a year, according to a study published today.

The home secretary, Alan Johnson, has endorsed a renewed drive to use tax powers to target organised criminals, taking even stronger powers to seize their assets, and shut down front organisations such as saunas and massage parlours.

The joint report, by the Cabinet Office’s strategy unit and the Home Office, warns of an explosion in new types of crime as a result of the recession, with sharp increases recorded this year in the counterfeit goods trade, “phishing” – taking over other people’s bank accounts – and other types of financial fraud.

The study does not directly criticise the performance of the beleaguered serious organised crime agency, but it does say much tighter oversight is needed by ministers to keep a grip on the problem.

The Home Office plans create a new strategic centre for organised crime to ensure that clear roles are laid down for tackling drug trafficking, organised immigration crime, and organised fraud. Further action will be taken next summer if a more aggressive approach is not achieved.

At the same time the capacity of the police is to be boosted by a further four regional asset-recovery teams to complete the network across England and Wales. Each will have its own tax inspector, and the Home Office is to extend the teams’ legal powers to “reverse the burden of proof” in civil recovery cases, to make it easier to seize the assets of those involved in organised crime.

The data was published as another Home Office study called into question the credibility of Britain’s controls to curb people-trafficking. The research, based on interviews with 45 convicted people-smugglers, showed that most thought Britain was a soft touch, with a low risk of detection and a market that conferred healthy profits. Many of those surveyed did, however, express surprise at the severity of the sentences they had received.