I'm very much agreed generally, but in the case of somebody hustling by renting out their council flat, I'm not sure that the worst punishment is useful. This is probably not a wealthy person, and the damage done is theoretical and marginal. Making them pay it back entirely actually might be an onerous burden, it's probably mostly spent. I might reduce the amount by some token per night rented representing having to find somewhere else to sleep or having to share your space with a stranger.

Punishing financial crimes to a degree that could have a deterrent effect should start at the top, not at the bottom. Also, IMO, if the UK actually started doing this, its economy might collapse.

It could be worse as well because either they haven't declared this income and now HMRC will be after them or they have and they might not be able to get a refund from HMRC. I assume this would be considered a business loss and I'm not sure if you can refund past taxes against a present loss.

>should start at the top, not at the bottom

then it will never start.