Almost one in 12 independent corner shops could be at risk of closure or reducing staff due to tobacco smuggling and cross-border shopping, a survey revealed today.

The findings, published by the Tobacco Retailers Alliance (TRA), show that almost eight per cent of shop owners were considering ceasing trading directly due to a rise in the sale of illegal and counterfeit cigarettes.

A further 26 per cent of the businesses questioned in Yorkshire and Humber admitted they were contemplating cutting staff as a result of a decline in tobacco sales.

Stephen Hunter, who has run Old Road News in Horton Bank Top for more than 20 years, has previously told the Telegraph & Argus that he was worried about the effects of the tobacco black market on his business.

He said: “It does chip away at trade, there’s no doubt about that. Money is tight for all of us. If people don’t come in to get their cigarettes from us, then they won’t be in to buy other things linked to them like newspapers.

“Thankfully, we’ve still got our staples like milk and bread that bring people in to their street shops, but nowadays we can’t rely on tobacco to bring in that kind of trade.”

The figures also showed that 13 per cent of traders were considering closure nationally, while 31 per cent thought they might have to lay off staff.

The Government has been holding a consultation on proposed plans to sell cigarettes in ‘plain’ packaging to discourage smoking and improve public health.

However, almost half a million rejections were received against the idea. And in a poll of serving police officers in the UK, 86 per cent of them said they felt a simpler packaging containing only warning photos and a brand name for cigarettes would increase smuggling.

Mr Hunter, who is also the Bradford Secretary of the National Federation of Retail Newsagents, added: “Lots of us traders are aware of cigarettes being sold illegally. With more and more people going off on foreign holidays it gets even worse. We notice it especially in the summer months.

“In the ideal world, penalties would be stricter for anyone caught selling contraband tobacco, but I’m not sure it’s going to happen.”

Dave Tingle, another member of the Tobacco Retailers Alliance, said: “If the Government introduces the plain packaging of tobacco, this would play into the hands of smugglers as they will no longer have to spend time and money copying the complex variety of branding currently present across the range of tobacco products.

“So that will mean more profit for the smugglers which will be channelled into underworld activities such as people trafficking and prostitution. In addition, more sales for the smugglers means lost sales for legitimate retailers like me,” he said.