WESTMINSTER will become the first local authority in Britain to launch a “dirty money” campaign to combat London’s reputation as the European centre for money laundering.

The Labour-controlled council took the first step last night by approving a Fair Tax Pledge and committing itself to working with others to tackle the scourge of economic crime and international corruption in the Westminster property market.

Council leader Cllr Adam Hug called on the central government to make major changes in order to stop London from being a soft touch for investors with dubious money to spend.

These include tightening procurement laws to restrict the use of tax havens and low-tax jurisdictions and a commitment, in the forthcoming Economic Crime Bill, to resourcing for the National Crime Agency and HMRC to fight money laundering.

Mr Hug said: “Westminster’s dirty secret has been known for many years but those in power looked the other way for too long as money of questionable origin flooded into London and investors took advantage of our relatively lax laws.

“It took the war in Ukraine to refocus attention on oligarch investments and what London has become in terms of a European laundromat for dirty money.”