A nationwide survey has highlighted the growing scale of the illicit tobacco market in the UK, with one in five smokers admitting to buying tobacco from illegal sources.
The survey, commissioned by the Tobacco Manufacturers’ Association (TMA) and based on responses from 6,000 UK smokers, found that 20 percent of them buy illicit tobacco every week.
The highest levels were recorded in London at 24 percent, followed by the North East at 22 percent, and Yorkshire and the Humber at 20 percent. Even in the lowest reported regions, including the South West, Scotland and Wales, 12 percent said they buy illicit tobacco weekly.
According to the TMA, the findings come as tax receipts from tobacco products continue to fall by up to £1 billion each year. The report points to the price gap between legal and illegal products as the main driver of the black market.
The average price of a 20-pack of illicit cigarettes was reported to be between £3 and £6, compared with an average price of £16.60 for legal products. For handrolling tobacco, the average price paid for illegal products was between £5 and £8 for 50 grams, compared with around £40 for legal equivalents.
Twelve percent of respondents said they had bought the “Manchester” brand of cigarettes, which the report describes as being manufactured in Dubai almost exclusively for illegal distribution. Half of those surveyed said they had no issue buying tobacco from someone they knew.
The survey also explored attitudes toward law enforcement. While police typically support Trading Standards and HMRC in tackling illicit tobacco, 53 percent of respondents said they would contact police with information about illegal sales, and 63 percent agreed that illicit tobacco is linked to organised crime. Nearly seven in ten (69 percent) believed that cheap illegal tobacco makes it easier for children to start smoking.
Rupert Lewis, director of the TMA, said:
“Another year, another illicit tobacco survey, and what is most dispiriting is the fact that the Government is still burying its head in the sand and refusing to listen to the legitimate views and reservations of those UK citizens concerned about the impact of illicit tobacco and the impact that it has upon their lives and their local communities.
“There is a growing disconnect between the public’s tolerance to buy illicit tobacco the product – because it is so much cheaper than legal tobacco, and the negative impact that the wider illicit tobacco industry is having across the UK, with 63% of those surveyed believing illicit tobacco has links to organised crime gangs (which also trade in drugs and people trafficking) and 69% believing that cheap illicit tobacco is making it easier for children to take up smoking.
“The government’s approach to tobacco policy is deeply flawed. If it continues to rely entirely on exponential tax rises, the experiences of the ‘Tobacco Turf Wars’ in Australia will explode onto Britain’s streets leaving law enforcement powerless to fight back.
“If the Government is serious about reducing smoking rates it needs to execute a twin-track strategy of pursuing stronger ‘zero tolerance’ enforcement action against those criminals trading illicit tobacco, along with prioritising more investment in targeted-education programmes, youth access prevention and smoking support services, and campaigns to educate smokers on less harmful alternative nicotine products.”
Reform MP Lee Anderson also commented on the findings, saying:
“Labour’s war on fun is fast becoming a war on Britain’s high streets. One in five smokers are now lining the pockets of crime bosses instead of local shops, fuelling human trafficking, money-laundering and dodgy businesses in our towns. It’s obvious jacking up taxes only reduce tax revenue and won’t stop smoking. So why is Labour planning to ratchet tobacco duty up even more? Even before the Budget, Rachel Reeves is proving she’s all tax, no common sense.”
The Government’s tobacco duty escalator increases tobacco prices by two percent above inflation each year. The Treasury raised £8.8 billion from tobacco duty last year, down from the Office for Budget Responsibility’s forecast of £11.4 billion, a fall of 12 percent on the previous year.
The TMA has urged ministers to reconsider their approach and to strengthen enforcement and education to curb the spread of illicit tobacco in communities across the country.
