One in Four Liverpool Shops Selling Illegal Tobacco 2026

Key Points

• A recent test-purchasing operation in Liverpool found that 25% of independent tobacco retailers were selling illegal tobacco.
• The operation covered 72 independent shops between 30 January and 3 February 2026, with 18 stores found selling illicit products.
• Fourteen of the 18 offending shops had also sold illegal tobacco during previous test-buying exercises, indicating repeat offences.
• Counterfeit Amber Leaf was sold for £4 compared to a legal 30g pouch price of £27.95, while the Belarus/UAE-origin brand Topgun was priced at £6.
• Illegal tobacco was hidden behind vape displays, in gantries alongside legal stock, behind counters, and in back rooms.
• HMRC estimates the illegal tobacco trade costs the UK Treasury more than £2bn in lost tax revenue annually.
• The findings come ahead of further tobacco duty increases planned from 1 October 2026.
• Liverpool City Council has previously secured multiple closure orders against shops selling illicit tobacco and vapes in the city and surrounding Wirral area.
• Enforcement actions in recent months have included hiding large quantities of illegal cigarettes in concealed storage spaces and vehicle trunks.
• The operation was commissioned by JTI and carried out by a trained undercover operative, raising questions about industry-led monitoring and public authority response.

Liverpool (Liverpool standard) July 07, 2026 – A recent test-purchasing investigation in Liverpool has revealed that illegal tobacco is being sold in a quarter of independent shops visited in the city, raising fresh concerns about the scale of the illicit trade and its impact on consumers, legitimate retailers, and public finances.

The exercise, carried out on 30 January and 3 February 2026 by a trained undercover operative commissioned by JTI, visited 72 independent tobacco retailers across Liverpool. Of these, 18 (25%) were found to be selling illegal tobacco. As reported by the author of the Better Retailing article covering the operation, the findings highlight a persistent problem in the city’s convenience and newsagent sector, with many offending outlets already known to enforcement bodies from earlier investigations.

How Extensive Is Illegal Tobacco Sales in Liverpool?

According to the operation’s results, illegal products were not confined to a small number of fringe retailers but appeared across a broad sample of independent shops in different parts of Liverpool. The 25% rate means that for every four independent tobacco sellers tested, one was offering illicit tobacco to customers.

Products purchased during the operation included counterfeit Amber Leaf, priced from £4. By comparison, the recommended retail price of a legal 30g pouch was £27.95 as of 19 January 2026. That price difference creates a strong incentive for consumers to seek out cheaper, unregulated products, while simultaneously undercutting legitimate retailers who must pay full duty and comply with packaging and labelling rules.

The illicit white cigarette brand Topgun, sourced from Belarus and the UAE, was also found on sale for £6. Such “illicit white” cigarettes are typically produced outside the EU/UK regulatory framework and sold at significantly lower prices than duty-compliant products, often with no health warnings or standardised packaging.

Where Was Illegal Tobacco Hidden in Liverpool Shops?

The investigation also documented how illegal tobacco was stored and displayed in the shops visited. As noted in coverage by Better Retailing, illegal products were concealed behind vape displays and in gantries alongside legal stock, as well as behind counters and in back rooms. This pattern suggests that some retailers are deliberately trying to avoid obvious visibility while still making illicit products available to customers who ask for them.

Hiding tobacco behind vape racks or in non-public areas can make it harder for casual inspectors or passers-by to detect, but it does not remove the legal risk. Trading standards officers and police have in recent months uncovered large quantities of illegal cigarettes in concealed storage spaces in Wirral shops, including Moreton Convenience Store, where thousands of illegal cigarettes were found in a hidden area. In another case, the owner of The Corner Shop on Picton Road in Liverpool was found with illegal cigarettes stashed in the trunk of his vehicle.bbc.co

How Many Liverpool Shops Are Repeat Offenders?

One of the most concerning aspects of the Liverpool operation is the number of repeat offenders identified. Fourteen of the 18 stores found selling illegal tobacco had also sold illegal tobacco during previous test-purchasing operations. This suggests that current enforcement measures, while resulting in some closures and penalties, are not yet sufficient to deter a significant number of retailers from continuing to sell illicit products.

As reported by the author of the Better Retailing article, the repeat offending pattern raises questions about whether existing sanctions are strong enough, and whether there is adequate coordination between industry-led monitoring, local authorities, and national enforcement agencies such as HMRC. In Wirral, multiple convenience stores have been forced to close for three months after test purchases revealed the sale of illicit products, showing that closure orders are being used but may not always lead to long-term compliance.liverpoolecho.co

What Is the Financial Impact of Illegal Tobacco in the UK?

The scale of the illegal tobacco trade has major implications for public finances. HMRC estimates the illegal tobacco trade costs the Treasury more than £2bn in lost tax revenue each year. That figure represents not only duty and VAT lost on untaxed cigarettes and hand-rolling tobacco, but also the broader economic impact on legitimate retailers who cannot compete with the artificially low prices of illicit products.

The findings in Liverpool come ahead of further tobacco duty increases due to take effect on 1 October 2026. Higher duties on legal tobacco are likely to widen the price gap between compliant and non-compliant products, which in turn could increase the incentive for both retailers and consumers to engage with the illicit market if enforcement does not keep pace.

What Enforcement Actions Have Been Taken in Liverpool and Surrounding Areas?

Liverpool City Council has been active in recent months in tackling illicit tobacco and vape sales. News reports indicate that the council’s Alcohol and Tobacco Unit has seized over 30,200 vapes valued at £362,736 and closed 26 shops since October 2023. In addition, Liverpool City Council has secured three further enforcement outcomes over a single week for premises involved in the sale of illicit tobacco.facebook

In the Wirral area, which is closely linked to Liverpool in terms of enforcement activity, more than three convenience stores have been forced to close for three months after test purchases revealed the sale of illegal goods. The Corner Shop on Picton Road was ordered to close for three months after multiple breaches involving untaxed tobacco and prohibited single-use vapes, and the proprietor was required to pay £3,726 in expenses. Moreton Convenience Store in Wirral was shut for three more months after thousands of illegal cigarettes were discovered in a hidden storage space. Two other Wirral shops were also closed over illegal cigarette sales, with hundreds of illegal cigarettes seized by Trading Standards.bbc.co+1

These cases show that local authorities are using closure orders and financial penalties as part of their toolkit, but the repeat offending pattern in Liverpool suggests that more sustained pressure may be needed to改变 retailer behaviour over time.

Who Is Affected by Illegal Tobacco Sales in Liverpool?

The sale of illegal tobacco in Liverpool impacts a range of stakeholders. Legitimate retailers face unfair competition from shops offering much cheaper, untaxed products. Consumers may be exposed to unregulated products that do not meet safety or labelling standards. Local authorities and national government lose significant tax revenue, which affects public funding. And enforcement agencies must dedicate resources to investigating and closing offending premises, often dealing with repeat offenders who have already been penalised.

Background of the Illegal Tobacco Development in Liverpool

The illegal tobacco operation in Liverpool is part of a longer-standing pattern of enforcement and monitoring in the city and wider Merseyside area. Industry bodies such as JTI have commissioned independent test-purchasing exercises to identify the scale of illicit sales, while local authorities like Liverpool City Council have used trading standards powers to seize goods and close premises. Recent high-profile cases in Wirral and Liverpool demonstrate that hidden storage spaces, vehicle trunks, and back rooms are commonly used to conceal illicit tobacco. The October 2026 tobacco duty increase is expected to further influence the dynamics between legal and illegal markets.

Prediction: How This Development Could Affect Liverpool Retailers and Consumers

If illegal tobacco sales remain at current levels and repeat offending continues, Liverpool’s legitimate convenience stores and newsagents may face ongoing pressure on margins and customer trust. Consumers who prioritise low prices may increasingly turn to illicit outlets, especially if duty rises make legal tobacco more expensive. For local authorities, the data suggests that closure orders and penalties alone may not be enough; a more coordinated approach with industry monitoring, HMRC, and police could be needed to reduce repeat offences. Without stronger intervention, the £2bn national loss in tax revenue could be partially reflected in local economic damage and continued enforcement challenges across Liverpool and Wirral.