Tobacco: Smuggling

Lord Sheldon Excerpts

Thursday 16th May 2013 Lords Chamber

Asked by

[Lord Sheldon]

To ask Her Majesty’s Government what action they are taking to reduce tobacco smuggling.

[Lord Newby]

My Lords, the joint HMRC and UK Border Force efforts to tackle tobacco smuggling were strengthened in 2011. This included further investment of more than £25 million from the Government’s 2010 spending review to increase HMRC’s capacity to target and disrupt illicit trade and investigate those behind that trade. Latest estimates indicate that the illicit cigarette market has more than halved since 2000, from 21% to 9%, and the hand-rolling tobacco illicit market share has reduced from 61% to 38%.

[Lord Sheldon]

My Lords, is it not essential to reduce the smuggling of tobacco? It affects any increase and clearly results in an artificial weakness.

[Lord Newby]

My Lords, I completely agree with the noble Lord, which is why the Government have put more money into this. The money that we have put in will mean that 120 additional enforcement staff are employed at borders, looking specifically at this. There is a 20% increase in criminal investigations and a 20% increase in the overseas intelligence network, which is instrumental in identifying the sources of smuggling.