The impact of illicit tobacco sales and trading of stolen and counterfeit goods on British high streets has been highlighted in a new report, leading to a call for more resources in tackling the issue.
A new White Paper, Legitimate High Street Framework, commissioned by Co-op, and written by criminologist, Prof Emmeline Taylor, stresses the importance of Government and Local Authorities focusing attention on disrupting organised crime networks that are active in many UK towns.
The study also highlighted a YouGov survey, commissioned by Co-op revealing that more than one in three (36%) UK smokers have bought illicit cigarettes, either illegal imported branded cigarettes or counterfeit unbranded/unknown brand cigarettes. This number drastically increases in those under 45 years, with nearly half (47%) of 18-24s; 40% of 25-34s and 49% of 35-44 having bought illicit cigarettes.
For those buying counterfeit tobacco products, the contents can often be unknown, and frequently contain material not meant for human inhalation. However, whilst 67% of smokers who buy these products are aware they may not be pure, they are willing to take the risk. The reason is most often to do with price, as 62% of smokers buy illegally for the single reason, they are cheaper. A recent, undercover Co-op exercise in a small geographical area targeted 24 seemingly ‘legitimate’ shops and found 18 of them - 75% - were selling illegal tobacco with an average price of just £5 a pack and the highest price only £8.
According to Co-op’s survey, amongst the common places smokers bought illicit cigarettes are often trading under the guise of legitimate businesses - corner shops (44%), vape shops (15%) independent supermarkets (11%) and barbers (4%). These businesses form part of a wider criminal ecosystem, benefitting the organised crime gangs not just by providing profit but in the legitimacy, they present as a store front.
Freedom of Information requests submitted by Co-op also revealed local councils in England are “woefully absent” in tackling these criminals and the growth of seemingly legitimate shops which service this shadow economy. The FOI’s revealed that on average, councils visit just four shops a month to investigate the sale of illegal cigarettes, and confiscate illegal cigarettes from just one shop every two weeks and seizing the equivalent of just one illegal cigarette per resident over three years.
While activity varies massively by location. two-thirds (66%) of seizures and over 75% of confiscated illegal cigarettes were undertaken by just 25% of local councils.
However, the study went on to reveal that there is clear evidence that when action is taken, results can be achieved. Co-op’s FOI request found that when local councils do visit suspect shops, they find illegal cigarettes almost half (43%) of the time, confiscating an average of 8,000 illegal cigarettes per seizure.
The research went on to reveal that alongside this low number of raids, is the limited use of the Tobacco Track and Trace (TT&T) system, which enables all tobacco products to be tracked through the legitimate supply chain to the retailer.
While some Trading Standards have increased their use of TT&T through Project Cece; the Co-op FOI request highlights the crime prevention and detection potential of TT&T is significantly underutilised. 122 councils reported less than 500 TT&T referrals from more than 8,200 seizures in total — fewer than 6%. The vast majority of these referrals (75%) were reported by just 15 councils, with more than half (57%) reporting no engagement with the TT&T technology at all.
Commenting on the findings of the report, Co-op’s director of public affairs and campaigns, Paul Gerrard urged more support in the battle against the illicit trade. “The evidence we have collated shows how shadow and illicit economies are shaping the face of high streets up and down the UK, creating an unsafe environment, impacting legitimate businesses, preventing £1.4bn reaching the public purse.
“Co-op has been the leading voice on tackling retail crime within our own shops, but we need Government and local authorities to invest more time, money and effort into fighting the illicit tobacco trade, which is growing to unprecedented levels, as the £30m committed by the Government to this issue, won’t even touch the sides of the problem. Increased investment now will reap long term benefits, not only to the public purse, but to drive social and commercial benefits of thriving high streets and communities.”
Prof Emmeline Taylor added: “Britain’s high streets are the lifeblood of communities; however, we can see that crime is not simply a consequence of high street decline, it is now one of its principle drivers. Illicit tobacco, retail theft and the stolen goods market not only generate victims, but they also distort local economies, undermine legitimate commerce, erode public confidence, and weaken the opportunities for successful regeneration.
“The proposed Legitimate High Street Framework is a criminology informed approach to providing a coherent framework for protecting lawful enterprise, disrupting organised crime and restoring confidence. If Britain’s high streets are to experience the renaissance envisaged under Andy Burnham’s policy platform, tackling crime must be recognised as a prerequisite for renaissance, not simply a parallel objective.”
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