MILLIONS of fake fags packed with killer ingredients are flooding Britain, officials warn.

Many of the counterfeits contain asbestos, arsenic, rat droppings and even human poo.

The huge trade in illegal fags is thought to cost the economy more than £2billion a year in unpaid duty and is hampering efforts to get people to give up.

Now the Local Government Association, which represents 370 councils in England and Wales, is calling for courts to impose bigger fines for selling illegal cigarettes.

Trading Standards teams are targeting fake ones made to look like popular brands and bootlegged packs smuggled in from abroad to dodge duty payments.

Officials are even using sniffer dogs to track down secret stashes. Recent hauls were found hidden in the walls and floors of shops, in toilet cisterns and sweet boxes.

The LGA’s Simon Blackburn said: “The sale of cheap, illegal tobacco is funding organised criminal gangs and damaging legitimate traders.

“It is also making it easier for young people to get hooked, which undermines efforts to help people quit.

“Fake cigarettes contain even higher levels of cancer-causing toxins than standard cigarettes.

“Bigger fines need to be imposed by the courts to deter the sale of illegal tobacco.”