A disturbing rise in the sale of illegal tobacco has been recorded in Norfolk. EDP business writer Ben Woods investigates the effect this is having on the rural economy.
Criminal gangs with links to drug trafficking and illegal weapons are undercutting the high street and targeting young people to turn a quick profit on smuggled or counterfeit cigarettes, trading standards chiefs have warned.
These fears have been underscored by a tenfold increase in illicit tobacco complaints across the county – while the amount of tobacco seized has also risen.
The consumer watchdog has discovered illicit tobacco on sale at corner shops, car boot stalls, people's homes and on the streets of the county.
Within the last year, a stash of counterfeit hand-rolling tobacco was found stored at the back of a butcher's in Great Yarmouth, while police officers unveiled a haul of more than 160,000 duty-evaded Russian cigarettes at a house in Wisbech two years ago.
It is feared that young people – who may have been refused a tobacco sale at a local shop because they are under 18 – are being targeted by people selling illicit products on the streets, or by corner shop owners who are flouting the rules and selling smuggled or counterfeit tobacco under the counter, Norfolk Trading Standards said.
Tests on confiscated counterfeit tobacco have revealed traces of sawdust, asbestos and rat droppings – posing a serious health risk if smoked.
David Collinson, head of Norfolk Trading Standards, said the increase was sparked by the economic downturn, as a squeeze on consumer spending encouraged smokers to find cheaper ways of buying cigarettes and tobacco.
'We see illicit tobacco as an emerging threat to Norfolk people and we are actively developing intelligence across Trading Standards to identify the source and supply of illicit products,' Mr Collinson said.
'In the last year we have seen a marked increase in the quantity of illicit tobacco that we are seizing.
'This has come across from information passed on by the public or through our own intelligence systems.
'People who deal with illicit products in one type often deal with other illegal counterfeit products. When we enter premises we often find weapons or illegal drugs.'
Figures revealed by Norfolk Trading Standards show that complaint allegations about illicit tobacco in Norfolk rose from 10 – between April 2011 to March 2012 – to 111 between April 2012 and December 2013.
And the amount of counterfeit hand-rolling tobacco confiscated by the watchdog also rose from 950g to 13.3kg over the same period.
Mr Collinson added: 'We see illicit tobacco as being a significant contributor to giving children easier access to smoking.
'The people trying to sell it to children don't care about the impact they are having on their health – to them it is all about the money.
'It also has a significant impact on businesses and the wider Norfolk economy.'
The news comes as the Tobacco Retailers Alliance said that such was the threat to small businesses that last year 29% of east of England corner shops were considering laying off staff to cope with the blow to their trade.
While consumer spending has come under pressure since the recession, the average retail price of a standard packet of 20 cigarettes has risen from £4.50 to nearly £8 over the past ten years, according to the Tobacco Manufacturer's Association.
Smuggled and counterfeit tobacco can be difficult to spot, but signs of foul play can include missing health warnings on packages, poor print quality on cigarettes, misspelled words, or health warnings that are not printed in English.
Last year, a public accounts committee report revealed the UK economy lost £1.9bn through tobacco smuggling, which is equal to 20% of all the duty collected on cigarettes.
But the UK Border Force and the HMRC claims to have reduced the illicit market share of cigarettes from 22% between 2000/2001 to 9% in 2012/2013.
Deborah Arnott, chief executive of public health charity Action on Smoking and Health (ASH), said the rise in both reports, and tobacco seizures, demonstrates that agencies are getting better at tackling the issue.
Ms Arnott said: 'As action to fight illicit tobacco becomes more effective, more smugglers are caught and more information about the illicit market is gathered, of course the number of intelligence reports and even seizures is likely to increase.
'That doesn't prove the size of the illicit market is increasing.'
• If you want to report a case of illicit tobacco trading, contact the Citizens Advice Consumer helpline on 08454 040 506 or you can speak to someone anonymously at Crimestoppers on 0800 5551111.
• Has your business been hit by fraud? Contact business writer Ben Woods on 01603 772 426, or email ben.woods@archant.co.uk
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here