ABSTRACT
In response to the Grabiner Report on the underground economy, the Inland Revenue, the Department of Social Security and HM Customs and Excise committed themselves to implementing each of the relevant recommendations. Although the underground economy needs to be addressed across the board spectrum of activities, community support for tackling this problem is often strengthened by tackling first the more serious crimes and demonstrating success. The tragedy of the illegal Chinese cockle pickers at Morecambe Bay is yet another example of some of the consequences an underground economy may bring. Whenever there is significant smuggling and sale of smuggled tobacco, the government's policy of increasing excise duty and expenditure on education campaigns to encourage fewer people to smoke, becomes significantly less effective. Tobacco Smuggling is estimated that in the United Kingdom alone, nearly 120,000 people die of smoking each year.
