Crackdown on illegal tobacco gathers pace with over £1.4 million in penalties issued

A major UK‑wide crackdown on the illegal tobacco trade has now resulted in more than £1.4 million in civil penalties.

A strengthened enforcement partnership between National Trading Standards (NTS), local authority Trading Standards teams, including Cheshire West and Chester Council and HM Revenue and Customs (HMRC), continues to deliver tough action against offenders.

The milestone—initially reaching £1 million in late November 2025—continued to rise sharply, reaching £1.4 million by early January 2026. This reflects the growing number of investigations and the faster, tougher sanctions now being deployed against those supplying or selling illicit tobacco across the UK, including within west Cheshire.

Under enhanced powers introduced in July 2023, Trading Standards officers can make direct referrals to HMRC, triggering investigations and civil penalties of up to £10,000. Since the referral process began in October 2023, this approach has generated unprecedented sanctions, escalating swiftly for repeat offenders.

Retailers caught selling illegal tobacco also risk being removed from the Tobacco Track and Trace (TT&T) system, locking them out of the legitimate UK market.

The clampdown forms part of Operation CeCe, a joint initiative between HMRC and Trading Standards. Since its launch in 2021, the operation has removed more than 74 million illicit cigarettes, 19,750kg of hand‑rolling tobacco, and nearly 175kg of shisha products from sale. Locally, Cheshire West and Chester Council Trading Standards continues to play a critical role in identifying illegal sellers and protecting residents from the harms linked to illicit tobacco.

The Council’s Cabinet Member for Community Safety and Neighbourhood Pride, Councillor Stuart Bingham said:

“Illegal tobacco is not a victimless crime — it damages health, funds organised crime and undermines legitimate local businesses. Our Trading Standards officers are committed to working with National Trading Standards and HMRC to protect our communities and ensure retailers in west Cheshire play by the rules.

We will continue to act on intelligence, carry out inspections and support robust penalties for those who choose to break the law.”

Retailers across the borough — and nationwide — are encouraged to ensure their tobacco sales processes comply with the law and to report any concerns about illegal sales in their area.

Lord Bichard, Chair, National Trading Standards, said:

“The vast majority of retailers play by the rules. These sanctions demonstrate that we are taking decisive action against those who don’t.

“We urge anyone tempted to sell illegal tobacco to think again. The organised criminals supplying you don’t care about your community, your business or your safety – and you’re funding their wider criminal exploits as well as risking tougher penalties by selling their products.”

Rachel Nixon, HMRC Director Indirect Tax, said:

“These tougher enforcement sanctions strengthen HMRC’s ability to hit illicit tobacco sellers’ pockets with penalties of up to £10,000, which harms the wider criminal supply chain.

“Successful collaboration with Trading Standards continues to tackle the sale of illicit tobacco, which is estimated to cost the UK around £1.8 billion each year in lost tax revenue, undercutting retail businesses and funding crime across our communities.

“We encourage anyone with information about the smuggling, sale or supply of illicit tobacco to report it online.”

How to report illegal tobacco:

Report anonymously to HMRC: search ‘report fraud HMRC’ on GOV.UK

Citizens Advice consumer helpline (England & Wales) - 0808 223 1133