The market is shrinking but remains a local threat
The LGA and National Trading Standards are proud to have played a significant part in the progress the UK has made in tackling the illicit tobacco trade.
National data from HM Revenue & Customs (HMRC) shows the number of illicit cigarettes consumed annually has dropped by nearly 90 per cent since 2000, and the market share of illicit hand-rolling tobacco has fallen from 61 per cent to 24 per cent.
These are major public health victories, reflecting the impact of sustained enforcement, regulation, and investment in national strategies.
Operationally, the scale of enforcement remains significant. Between April 2023 and March 2024, HMRC, Border Force, and Trading Standards officers, working as part of Operation CeCe, seized 1.36 billion illicit cigarettes and more than 92 tonnes of hand-rolling tobacco, with a combined estimated revenue value of £720 million.
These seizures are complemented by criminal investigations – 194 arrests and 107 convictions in the same period – and civil penalties totalling more than £18 million.
But while the national picture is one of long-term decline, the lived experience in many of our communities tells a more complex story.
In local areas, particularly those facing economic hardship or where enforcement capacity is stretched, illicit tobacco remains a visible and persistent issue.
Residents report seeing it sold in markets, through informal networks, and even near schools. Retailers speak of unfair competition from unregulated sellers. Local enforcement teams continue to uncover significant quantities of illegal tobacco in raids and inspections.
This disconnect between national averages and local realities is critical. It doesn’t mean the national data is wrong, but it does mean that averages can obscure the challenges faced in specific places.
The illicit trade may be shrinking overall, but it hasn’t disappeared. And in some communities, it remains a serious concern.
Unfortunately, this perception gap has been deliberately exploited by the tobacco industry.
Whenever new regulations are proposed – whether it’s standardised packaging, menthol bans, or the upcoming generational smoking ban – the industry warns of a booming black market.
These claims are often based on industry-funded research that independent reviews have found to be consistently exaggerated. The goal is clear: to delay or derail policies that are proven to reduce smoking and save lives.
The evidence tells a different story.
Countries with stronger tobacco control measures and higher taxes tend to have smaller illicit markets, not larger ones, when those policies are backed by strong enforcement.
In the UK, cigarette prices have more than tripled since 2000, yet illicit consumption has plummeted.
The key to success has been investment in enforcement and public health, not leniency on regulation. That’s why local enforcement matters more than ever.
Trading Standards teams are on the front line of tackling illicit tobacco. They investigate illegal sales, disrupt supply chains and protect young people from harm.
But after years of budget cuts, these teams are overstretched. They are now responsible for enforcing nearly 300 pieces of legislation, often with fewer staff and limited resources.
We must remain vigilant, not only against the illicit trade itself, but also against those who exploit it to undermine public health policies and protect their profits.