Fresh statement on National Audit Office report on illegal tobacco
Fresh has welcomed a new report from the National Audit Office into the illegal tobacco trade which highlights work in the North East as an example of good practice.
“Progress in Tackling Tobacco Smuggling” reflects on the size of the UK illicit tobacco market – which has halved since the late 1990s – and HMRC work to tackle it.
The report gives the example of the North of England including the North East as a blueprint for regional initiatives to reduce both the supply and demand for illicit tobacco:
“Tackling Illicit Tobacco for Better Health is a pilot scheme launched in 2009 to improve the health of people in the North West, North East and Yorkshire and Humber by trying to reduce the supply of, and demand for, illegal sources of cigarettes and tobacco. Prior to the pilot programme, illegal tobacco was mainly the responsibility of HMRC, which focused mostly on supply. The new scheme has been the first large-scale attempt to cut public use of illicit tobacco using healthcare agencies as well as enforcement, social marketing campaigns and intelligence-gathering initiatives. The UK Centre for Tobacco Control Studies assessed the impact of the programme. It concluded that the programme has had a measurable effect on the problem in the north of England. It found evidence that the illicit tobacco market was shrinking in the north of England, which was likely to be attributable to the programme, and that the programme increased awareness among consumers about the harmfulness of illicit tobacco to communities, increasing intelligence reported to the hotlines and shifting the social norms around the illicit tobacco trade. The UK Centre for Tobacco Control Studies also concluded that the scheme offers a blueprint for regional initiatives to reduce both the supply and demand for illicit tobacco and is an exemplar of partnership working”
The independent North East Illicit Tobacco Survey found that despite the recession, there has been a steady decline in the proportion of smokers buying illicit tobacco in 2013, especially among 16-34-year-olds, while those smokers who do buy illicit tobacco are buying less of it.
It found illicit tobacco makes up a total of 9% of the total North East tobacco market in 2013 compared to 15% in 2009. This backs up the very latest HMRC data which found 9% of cigarettes were illegal in 2010-11, compared to one in five (21%) in 2000-01.
The North East Illicit Tobacco Survey also revealed:
• One in six smokers (17%) now buy illegal tobacco down from one in five (20%) smokers buying it in 2011 and one in four (24%) smokers in 2009.
• The total volume of illegal tobacco bought is down 27% on 2011 which was in turn down 41% on 2009. That means 192 million fewer cigarettes and hand rolled a year worth around £56m in duty.
• Just over four in ten smokers have been offered illicit tobacco, down from more than half in 2011.
The North of England Tackling Illicit Tobacco for Better Health Programme was launched in 2009 by Fresh and Tobacco Free Futures to bring together the work of the NHS, police, trading standards and HMRC.
Ailsa Rutter, director of Fresh, said: “While illegal tobacco is still a problem in some communities in that it gets children hooked, all the official figures show that the market has shrunk.
“The report also flags up concerns of HMRC that supplies of certain brands to specific countries are higher than legitimate local demand. Supply chain legislation was introduced in 2006 but HMRC analysis shows a continuing problem of over-supply of genuine tobacco products.”