Stronger powers to combat illicit tobacco come into force

New sanctions come into effect for those found selling illicit tobacco products

More than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized under Operation CeCe in its first 2 years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.

This comes as new powers come into force from 20 July, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. The sanctions will bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.

The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.

Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.

Nis Bandara, HMRC’s Deputy Director for Excise and Environmental Taxes, said: “Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.

“These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.”

Kate Pike, Lead Officer for the Chartered Trading Standards Institute, said: “Trading Standards Officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.

“We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.”

Lord Michael Bichard, Chair of National Trading Standards, said: “The illegal tobacco trade harms local communities and affects honest businesses.

“Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.”

HMRC will launch a new illicit tobacco strategy later in the year which will replace ‘From Leaf to Light’, which has been the guiding strategy for tackling the illicit tobacco market since 2015.

Further information on the new penalties

Building stronger social connections

Organisations awarded share of £3.2 million fund

More than 50 projects tackling social isolation and loneliness throughout Scotland have received a share of a new fund.

Edinburgh recipients of Social Isolation and Loneliness Funding include Big Hearts Community Trust, Edinburgh Tool Library, Pilmeny Development Project, Pilton Community Health Project and The Living Memory Association.

Activities delivered by the organisations include community choirs, walking football, Men’s Sheds and volunteering opportunities.

Equalities Minister Emma Roddick visited Inverness Foodstuff, one of the successful projects, to see the impact of their work and hear how support through the Social Isolation and Loneliness Fund will benefit the local community.

Ms Roddick said: “Social isolation and loneliness can affect anyone, but especially those most affected by the cost of living crisis such as disabled people, younger people, and those who live alone.

“The Social Isolation and Loneliness Fund is providing support to a range of projects across Scotland which deliver vital services in their communities. Inverness Foodstuff is a great example of how this Scottish Government funding will help to bring more people together, creating stronger social connections and improving public health.

“We are determined to tackle the harm caused by this hidden problem and this Fund is just one of the actions we are taking to help tackle social isolation and loneliness through our plan, Recovering our Connections.”

Inverness Foodstuff has been awarded a grant of £72,000 to deliver their lunch club twice a week in the Hilton area of Inverness. The lunch club will benefit an estimated 2,400 homeless and vulnerable people in the area over the duration of the Fund.

Chair of Inverness Foodstuff Stuart Black said: “Inverness Foodstuff has operated from Ness Bank Church since 2015 offering hot food three times a week, utilising surplus food.

“But, it’s more than just a meal. We offer access to clothing, debt relief, IT support, mental health support, housing and homelessness support and access to hairdressing. Inverness Foodstuff also provides 75 volunteering opportunities.

“Over the past year we have served 8,500 meals in our city centre premises, an increase of 58% compared to 2021-22. This reflects the cost of living crisis and the extent of poverty in our city.

“We are delighted to gain Scottish Government funding to expand our service into Hilton, a recognised area of need, in partnership with Highlife Highland.”