A BLACKBURN shopkeeper has slammed the budget increase in tobacco tax which he says is a further encouragement for smugglers and a body blow for legitimate retailers.

Solly Khonat, who is also a spokesman for the Tobacco Alliance, said he was "extremely disappointed" with the Chancellor's decision to raise taxation.

"Once again the Government has provided a boost for criminal tobacco smugglers at the expense of small independent shopkeepers up and down the country," said Mr Khonat.

"Retailers' livelihoods are being put at risk as is the much valued 'open-all-hours' service we provide to our local communities. This increase will only invite more smuggling and leave shopkeepers facing an uncertain and bleak future. Undoubtedly many will not be in business by the time of the next budget."

Mr Khonat said that retailers desperately needed a cut in tobacco tax to bring the UK in line with their counterparts in Europe.

"That is the only way to stop smuggling and safeguard the future of legitimate retailers," he said. "Unless something is done to address the wide price differentials the black market in tobacco will continue to grow."