This guy got arrested by the police, he was released and then run away to Dubai where he's from. He came back after a month and opened a company under a false name and started doing the same scam. I knew his address, I reported everything to the police and the police dropped the case without doing anything.

I'm already paying 25+k£ in taxes every year. If I didn't have to spend that and there would be no police or laws, private companies (aka burly guys with guns) would be needed to ensure citizens safety, in exchange for a fee. Different private companies would need to interact with each other to settle down cases, eventually agreeing on a set of laws to compensate people subjected to crimes.

In this hypothetical world, I would have been happy to pay for my protection agency to go and fetch this individual and bring him to a private court where my protection agency and his protection agency could debate whether the crime happened or not.

It was a blatant crime so there was no reason I would lose and that guy should have been forced to return my money (according to laws agreed on by contracts between our private protection agencies) or work in jail until I'm repaid.