Britain has a growing illegal tobacco problem.
Cheap, untaxed tobacco is being sold openly in communities across the country, costing taxpayers billions, undercutting honest retailers and putting money into the hands of organised criminals.
Over the past 18 months, JTI UK has combined national polling of more than 15,000 people, undercover test purchasing and first-hand retailer testimony to investigate what is happening on Britain's high streets. [3]
Four priorities.
One clear goal.
National licensing
A scheme covering the whole tobacco and nicotine supply chain.
Credible enforcement
Stronger powers and penalties of up to £10,000.
Sustainable funding
Ringfence penalties to support frontline enforcement.
Consistent measurement
One credible methodology to measure the illegal market.
What the report reveals.
From the scale of illegal sales to the impact on retailers and communities, the investigation reveals five key findings.
Almost one in three shops
Undercover test purchasing found illegal tobacco in almost one in three independent shops visited. [1]
A price gap retailers cannot match
Counterfeit rolling tobacco was available for as little as £4, compared with £50.60 for a legal 50g pouch. [4]
Organised crime profits
Enforcement agencies link the trade to wider criminal networks and serious offences. [9]
High streets pay the price
Illegal trade undermines legitimate businesses and can contribute to wider community harm.
There is still time to act
Repeat offending and evolving methods show why sustained enforcement reform is needed. [6]
Independent shops visited found selling illegal tobacco
Estimated tobacco duty and VAT lost in 2024/25
Independent shops visited by undercover operatives in 2026
UK adults surveyed who reported being offered illegal tobacco in the previous 12 months
Survey and investigation figures relate to the research described in the report. See sources and methodology below.
Explore the full evidence behind the findings.
Download the reportHidden in plain sight.
Undercover operatives found a black market using concealed stock, repeat sellers and off-site storage. Explore three patterns from the investigation.
01 / Hidden in plain sight
Operatives found illegal tobacco concealed under counters, behind vape displays, inside crisp boxes, in backrooms and even within walls. [1]
02 / Beyond the shop floor
Some sellers used nearby flats, parked vehicles, neighbouring vape shops or other individuals to supply illegal tobacco without keeping it on the premises. [1]
03 / Caught before. Still selling.
More than half of the shops found selling illegal tobacco in 2026 had sold to undercover operatives before. In Coventry, 16 of 18 shops identified had been caught previously. [6]
Illustrative photography. Tap a numbered hotspot or tab to switch the image and finding. Photographs do not depict documented investigation sites.
of the British public surveyed said there is not enough enforcement to stop illegal tobacco.
A price gap honest businesses cannot match.
Legitimate retailers are competing against sellers who avoid the rules, taxes and costs of operating legally.
When customers go elsewhere for cheap tobacco, retailers can lose the rest of their shopping too. One Liverpool retailer reported tobacco sales falling by around 39% over 18 months. [7]
“We're losing out to other establishments that are going down the illicit route. You don't know necessarily if you'll be here next year or in a few years’ time if it carries on the way it is.”
Retailer, Manchester
Read the full reportThe cost goes far beyond the counter.
Illegal tobacco is part of a wider criminal economy, with consequences for legitimate businesses, local communities and public safety.
HMRC and Border Force have linked the trade to organised crime groups involved in drugs, firearms, money laundering and human trafficking.
Of Trading Standards professionals surveyed were aware of suspected organised crime groups operating from shops on their local high streets.
Tackling illegal tobacco means protecting more than tax revenue. It means supporting honest businesses, disrupting criminal networks and helping communities reclaim their high streets.
Explore the impact on communities Download the reportTaking the issue to a wider audience.
Since launching in 2025, It Costs More Than You Think has helped bring the realities of illegal tobacco into the national conversation.
Online advertising impressions
Campaign website visitors
Campaign microsite actions, including clicks, video plays, page visits and downloads
Parliamentary mentions during the campaign period
From awareness to action
The debate now extends beyond cheap tobacco and lost tax to organised crime, repeat offending and the future of Britain's high streets.
Download the report
The evidence is clear.
Now is the time for action.
Read the full investigation, findings, retailer testimony and recommendations in Under the Counter: A Year Investigating Illegal Tobacco on Britain's High Streets.
Download the full reportDiscover more about the issue.
References
The following references identify the research, investigation findings and campaign reporting cited in Under the Counter. Figures derived from JTI UK research are distinguished from external estimates and publications.
- [1] JTI UK undercover test purchasing, 2026. More than 1,270 independent shops visited. Almost one in three found selling illegal tobacco. Findings relate to sampled premises and should not be interpreted as a nationally representative estimate of all UK retailers.
- [2] HM Revenue & Customs. Tobacco tax gap estimates for 2024/25. Estimated £1.7 billion in unpaid tobacco duty and VAT, as cited in the report. Confirm the original publication and table.
- [3] JTI UK national consumer polling. Research programme involving more than 15,000 respondents. 31% of UK adults surveyed reported being offered illegal tobacco in the previous 12 months. Confirm fieldwork dates, sample size for this question and weighting methodology.
- [4] JTI UK undercover purchasing and retail price comparison. Counterfeit rolling tobacco found for as little as £4, compared with the £50.60 recommended retail price of a genuine 50g Amber Leaf pouch.
- [5] JTI UK national consumer polling. 82% of British respondents surveyed said there was not enough enforcement to stop illegal tobacco. Confirm exact survey question, fieldwork dates and respondent base.
- [6] JTI UK repeat test purchasing analysis, 2026. More than half of shops found selling illegal tobacco in 2026 had sold to undercover operatives previously. Coventry example: 16 of 18 shops identified had been caught before.
- [7] Independent retailer testimony, Liverpool. Retailer-reported decline of approximately 39% in tobacco sales over 18 months, as featured in Under the Counter.
- [8] Trading Standards professional research cited in Under the Counter. 97% awareness of suspected organised crime groups operating from local high-street shops. Confirm original publication and respondent base.
- [9] National Crime Agency. Estimate cited in the report that at least £1 billion in criminal money passes through high-street businesses annually. Confirm the original NCA source.
- [10] Trading Standards professional research cited in Under the Counter. 72% reporting intimidation or threats of violence. Confirm original survey publication and wording.
- [11] JTI UK, It Costs More Than You Think campaign reporting. More than 104 million online advertising impressions, more than 100,000 campaign website visitors and 392,035 microsite actions, including clicks, video plays, page visits and downloads, during the reporting period.
- [12] Parliamentary monitoring cited in Under the Counter. 144 mentions of illegal tobacco during the campaign period. Confirm monitoring dates and inclusion criteria.
Source descriptions are based on the draft report. Original publication details, survey methodologies, source URLs and final figures require verification before publication.