A landlady from Leicestershire is warning that village pubs are under threat from the illegal smuggling of alcohol.

The British Institute of Innkeeping says that every pub in the country loses around �12,000 a year in sales because of illegal competition.

It says up to five smaller country pubs are closing every week as a result of the loss of sales.

Rose Cunningham, East Midlands chairman of the institute, says bootlegging is hurting publicans and more action is needed.

Underage drinkers

Mrs Cunningham, landlady of the Old Crown Inn at Fleckney in Leicestershire, said: "The problem is getting worse not better. There are about 27,000 known smugglers selling up to 1 million pints a day for illegal resale."

The smugglers sell the alcohol to anyone, but especially to young people who are 15 and under

Rose Cunningham Landlady

"People don't realise how many small pubs are going under because of smuggled drinks, they are being closed every day.

She said the government should reduce the tax on alcohol because that would reduce the incentive to smuggle.

"The smugglers sell the alcohol to anyone, but especially to young people who are 15 and under," she said.

"They drink it in the streets, while we are law-abiding and don't serve underage people."

In 2000, an estimated �3.9bn was lost to the government coffers through tobacco smuggling, and �245m through alcohol smuggling.

In a survey on the issue, almost two-thirds of the 410 retailers surveyed said pubs and clubs were the most popular outlets for smuggled goods.

Over 50% said that private homes, car boot sales and the backs of vans were all commonly used to sell on smuggled goods.