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Tuesday 22 July 2025 6:00 am  |  Updated:  Monday 21 July 2025 7:45 pm

UK government to sanction companies driving illegal migration 

By: Mauricio Alencar

Politics and Economics Reporter

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The UK government is set to introduce a new sanctions regime targeting people smuggling gangs and rogue companies driving illegal migration.
The UK government is set to introduce a new sanctions regime targeting people smuggling gangs and rogue companies driving illegal migration.

The UK government is set to introduce a new sanctions regime targeting people smuggling gangs and rogue companies driving illegal migration as part of efforts to curb small boat crossings and stop modern slavery in the UK. 

In new reforms unveiled by the Foreign Office, individuals and companies responsible for irregular migration will see their assets frozen, exclusion from the UK’s financial system and bans from travelling to the UK. 

Those that could be hit in the first wave of sanctions, which will be unveiled on Wednesday, could include financial services providers, fake passport traders, people smugglers, dinghy makers and public officials from other countries. 

Government officials hope they can pave the way for other countries, including those within the European Union, to follow suit and introduce their own dedicated sanction regimes.

The Home Office said in March the total income from migrant smuggling reached $10bn last year, with officials looking to double down on its “disrupt, deter, return” strategy. 

The government will use the existing Sanctions Act, which has been used to target Russian officials in recent years, and introduce secondary legislation to include traffickers and other criminal actors. 

Officials indicated funds from frozen assets would not be re-invested in tackling smuggling gangs as they have been done with Russian assets to buy weapons for Ukraine. 

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Foreign secretary David Lammy said:  “For too long, criminal gangs have been lining their corrupt pockets and preying on the hopes of vulnerable people with impunity as they drive irregular migration to the UK. We will not accept this status quo. 

“It is our moral duty and a key part of our plan for change to do all we can to smash these gangs and secure Britain’s borders.”

Illegal migration crackdown

The latest initiative follows a migrant returns deal with France, in which a pilot stage will see a few dozen people arriving in the UK on small boats exchanged for asylum seekers across the Channel. 

The government has also put £280m a year aside for UK border security by 2029 in June’s Spending Review, with another £400m a year to be put into speeding up asylum processes. 

Recent figures showed this year has seen a 50 per cent surge in small boat crossings compared to the same stage last year, putting the government under intense pressure to solve illegal migration.

A recent survey conducted by City PM and Freshwater Strategy showed that 65 per cent of voters believed the government had done a poor job on immigration, with the issue becoming a top concern among the British electorate.

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