Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking at a retail level to tackle the illicit tobacco trade.

HMRC works closely with local authorities to help tackle illicit tobacco trade at a retail level.

In January 2021 HMRC and National Trading Standards launched Operation CeCe. This joint initiative builds on decades of partnership working with local Trading Standards Officers.

HMRC funds Operation CeCe with the money being allocated by National Trading Standards to local authority Trading Standards. This supports them to undertake enforcement activity including the sharing of information and intelligence to target and seize illegal tobacco, disruption of the illicit tobacco market and prevention of fraud in their area.

In its first two years of operation more than 28 million cigarettes and nearly 8 tonnes of illicit hand rolling-tobacco were seized.

In July 2023 new powers were given to Trading Standards to make referrals to HM Revenue and Customs (HMRC) where they find evidence of tobacco products that do not comply with the UK Tobacco Track and Trace System.

In January 2024, HMRC published a new Illicit Tobacco Strategy ‘Stubbing out the problem’. The Strategy sets out how HMRC intends to build on the success of Operation CeCe by increasing the level of funding available to Trading Standards.