Chancellor Rachel Reeves is facing calls from members of her own party to avoid a tax double whammy, which could drive Britons to “organised criminal gangs”.Former Shadow Minister Mary Glindon, the Labour MP representing Newcastle upon Tyne East and Wallsend, is pressing the Chancellor to reconsider the scheduled tobacco duty hike as smokers could be pushed to the black market.Speaking exclusively to GB News, she said: “It is no secret that I strongly support measures to discourage smoking and back the Government’s Smokefree ambition.”However, retailers in North Tyneside have made clear to me that the planned double tobacco duty increase later this year could further drive some customers towards the illicit market, undermining responsible local businesses and benefiting organised criminal gangs instead.”The Chancellor is being warned about raising tobacco duties | GETTY The scale of Britain’s illicit tobacco problem has been laid bare in a KPMG report released this week, which revealed that nearly half of all cigarettes smoked in the UK during 2025 came from illegal sources.According to the findings, 45 per cent of cigarettes consumed were illicit, with counterfeit and contraband products accounting for 32.3 per cent of total consumption, while 13 per cent were legally purchased overseas.Illicit cigarette consumption surged by 1.5 billion units compared with 2024, positioning the UK as Europe’s second largest illegal market by volume, trailing only France.The Treasury is estimated to have lost nearly £3.2billion in tax revenue to the black market in 2024.The former Shadow Minister is urging the Chancellor to stop the tax hike | PARLIAMENT The YouGov survey also found majority support for a smoking ban in university campuses and bus stops | PAThe October duty changes will see tobacco face a one-off increase of £2.20 per 100 cigarettes and per 50g of tobacco, combined with the annual escalator rise of RPI plus two per cent.These combined measures are expected to push the price of a 50g pouch of rolling tobacco beyond £52.Ms Glindon has drawn parallels with the Chancellor’s recent decision to delay fuel duty increases, arguing the same approach should apply to tobacco levies.She said: “Given the wider cost of living pressures still facing many households, I feel there is a strong case for the Treasury to consider pausing the planned double increase while continuing to strengthen enforcement against illicit tobacco and support responsible local retailers.” Rachel Reeves is preparing to slow the pace of increases to the youth minimum wage | GETTYThe illicit tobacco trade is already making its presence felt across the North East, with Trading Standards officers in South Tyneside confiscating more than £10,000 worth of illegal cigarettes last week alone.Border Force seizures have also climbed sharply, with 927 million illicit cigarettes intercepted last year compared to 783 million in 2022-23.Industry analysis suggests the planned duty rises will add 0.2 percentage points to CPI inflation, potentially increasing costs for households already grappling with living expenses.GB News has contacted the Treasury for comment.