NEWSAGENTS in Worcestershire have revealed they are losing thousands of pounds a week because of tobacco smuggling.

Many businesses are facing bankruptcy while others are considering axing staff because of criminal gangs buying cigarettes abroad for less than half of the price in Britain and then selling them on the black market.

The gloomy picture came to light after research by the Tobacco Alliance showed how the problem was growing countrywide.

An investigation by the Evening News revealed how small shops in the county are being hit.

Lawrence Jacobs, who owns Hampton's of Evesham, which specialises in loose and flavoured tobacco, estimates he is losing more than £1,000 a week after comparing figures for the last few years.

A few years ago, he would have expected to sell £3,000 worth of tobacco a week - now it is just £2,000.

"I get angry just thinking about it," he said.

"I have noticed a dramatic decline in recent years in the amount of tobacco I sell and I know it is down to people buying them cheap elsewhere.

"I know this because we are still selling a lot of cigarette papers, which aren't so popular with smugglers.

"If it wasn't for the sweets and newspapers I wouldn't have a business. That's how bad it is now."

Many retailers are annoyed at what they see as the Government's laid-back attitude to smuggling.

"No one seems to want to stamp out the problem," said Andrew Mitton, of Andrews News, in Friary Walk, Worcester.

"The Government seems happy to let this continue."

Customs and Excise spokesman Bob Gainger said the agency was doing all it could to curb the problem, but he also urged smokers to do their bit.

"We have been given extra funding to pay for more people and more equipment to try to combat tobacco smuggling," he said.

"But we can only make a difference if people stop buying the contraband goods. Only if we work together can we turn the problem around."