Criminal activity is increasingly shaping UK high streets and threatening efforts to regenerate them, according to new research commissioned by Co-op.

A new white paper, supported by YouGov research and Freedom of Information data from 122 English councils, looked to highlight the scale of the illicit tobacco market and the limited enforcement activity targeting it.

The research found 36 per cent of UK smokers have bought illicit cigarettes, a market estimated to cost the Treasury around £1.4bn a year in lost duty, rising to 49 per cent among 35–44-year-olds.

Data from the convenience giant’s findings showed almost half of smokers who buy illicit cigarettes purchase them from seemingly legitimate businesses, including corner shops, vape shops and independent supermarkets.

In one undercover exercise covering 24 shops, Co-op found 18 stores selling illegal tobacco, with an average price of £5 a pack.

Co-op’s FOI research found councils visit an average of just four shops a month to investigate illegal cigarette sales. However, when visits do take place, illegal cigarettes are found in 43 per cent of cases, with an average of 8,000 cigarettes seized per seizure.

“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,” said Co-op’s director of public affairs and campaigns Paul Gerrard.

The Tobacco Track and Trace system was also used in fewer than 6 per cent of reported seizures, with more than half of councils reporting no engagement with the system.

Co-op is calling for greater government and local authority investment, more premises raids and increased use of the Track and Trace system.

Gerrard added: “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”

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