A revised strategy on tobacco smuggling by HM Revenue and Customs (HMRC) still does not go far enough towards tackling the problem, retailers and manufacturers have warned.

The strategy, written by HMRC and the UK Border Agency, promises to improve detection at borders and create new inland enforcement teams. It does not, however, commit major new funding for enforcement, or set new targets for reducing the market share of illegal tobacco.

The level of tobacco smuggling has fallen since 2000, but still accounts for 17% of cigarette and 59% of hand-rolling tobacco consumption, the strategy document revealed.

"Tobacco smuggling represents a serious threat to business," said national spokesman for the Tobacco Retailers Alliance Ken Patel.

"When there is a lot of cheap tobacco available in an area we shopkeepers just don't see some of our customers."