Moved by
12: After Clause 6, insert the following new Clause—
“Transparency of tobacco sales data(1) The Secretary of State must by regulations make provision requiring every manufacturer and importer of tobacco products to publish, on a quarterly basis, data relating to the sale of tobacco products in England and Wales.(2) Regulations under subsection (1) must in particular include provision requiring publication of—(a) the volume of sales of tobacco products, broken down by product type, brand and geographical region, and(b) such other information as the Secretary of State considers appropriate for the purposes of assessing tobacco consumption and its effects on public health.(3) Data published under regulations under this section must be made publicly available in a format accessible to public health authorities, local authorities, and other relevant bodies.(4) Regulations under this section are subject to the negative resolution procedure.”Member's explanatory statement
This amendment would require the Secretary of State to make regulations obliging tobacco companies to publish sales data, to improve transparency and support public health policy.
Baroness Northover Portrait Baroness Northover (LD)
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My Lords, Amendment 12, in my name and that of my noble friend Lady Walmsley, and Amendment 148, in my name, would require the Secretary of State to make regulations obliging tobacco manufacturers and importers to provide sales data by geographical area. Before the Minister says that there is already such a power, let me refer to Amendment 148, which seeks to change “may” to “must” for the requirement to make regulations and to publish data.

Tobacco companies collect rich data tracking the sales of their products which currently exist only to serve commercial purposes. Modelling from Cancer Research UK shows that those living in the most affluent areas of the UK should be smoke free this year, whereas those in the least affluent will not achieve that until after 2050—25 years later. That inequality has devastating consequences. Hence, there are nearly twice as many cancer cases caused by smoking in the poorest areas in England compared to the wealthiest.

Data collected by companies on sales and distributions could be used to inform public health. They could also give insights into different pricing strategies that companies use and would therefore complement a “polluter pays” levy, which I know many people rightly support. The data would also have value in setting up a new licensing system, helping local government understand the pattern of sales in its communities and make judgments about whether availability was appropriate. Trading standards would also benefit, using insights to support enforcement activity and improve the intelligence that local authorities have to assess local problems with any illicit sales and to identify upticks in illicit tobacco use.

Action on Smoking and Health, in its written evidence on the Bill, also flagged the issue of cigarillos, saying that surveys have

“recently identified that cigarillos are increasing in use among young people. With timely access to industry sales data public health agencies and researchers could have identified this trend far more quickly. These products have fewer restrictions on them than other tobacco products, something that will be addressed via the Tobacco and Vapes Bill, but lack of knowledge has inhibited swift public health response”.

Industry data have been shrouded in secrecy—what a surprise. Thank goodness that Professor Sir Richard Doll had the cancer registries to demonstrate the causal link between smoking and cancer. Since public health academics started analysing industry profits, they publish only very limited data. Mandated publication of sales data would ensure that this industry, which sells a product that kills two-thirds of long-term users, is appropriately regulated and monitored given the harms it causes. I look forward to the Minister’s response and I beg to move.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I agree with Amendment 12 moved by the noble Baroness, Lady Northover, but I want to speak to Amendment 192, which proposes the introduction of a levy on tobacco manufacturers.

When products cause harm, the polluter should pay. That principle was introduced by previous Conservative Governments; the landfill levy was introduced in 1996 and the soft drinks levy in 2018. After the Grenfell tragedy, we introduced the Building Safety Act to make the construction industry pay for the remediation of high-rise blocks. We should apply the same principle to tobacco.

In a report commissioned by the last Government, Javed Khan looked at three options to raise funds to implement his conclusions. He wrote:

“Introduce a ‘polluter pays’ industry levy on profits from cigarette sales, which can directly fund the full range of comprehensive measures to help us reach smokefree 2030 and make smoking obsolete. This is my preferred option … A tobacco ‘polluter pays’ levy could be introduced in the form of a charge applied as a percentage of these profits”.


It would not impact on the CPI or the cost to the consumer, and it would raise hundreds of millions of pounds.

We debated exactly that proposition on 16 March 2022, Amendment 158 to the Health and Care Bill, proposed by the noble Lord, Lord Crisp, whom I am delighted to see in his place. He said about that amendment:

“This new Clause … would require the Secretary of State for Health and Social Care to carry out a consultation about a statutory scheme for the regulation of prices and profits of tobacco manufacturers and importers. Funds raised by the scheme would be used to pay for the cost of tobacco control measures”.—[Official Report, 16/3/22; cols. 287-88.]


That is precisely what Amendment 192 proposes.

Responding to the amendment, the Minister, speaking then from the Opposition Front Bench on behalf of her party, said:

“This strikes me as wholly pragmatic; a wide-ranging consultation would undoubtedly help to strike the right balance between all the parties involved … The scheme proposed in this group of amendments would provide a well-funded and much-needed boost, and a consultation would allow this proposal to be tested, refined and shaped. I hope that the Minister will accept the opportunity of a consultation but if the will of the House is tested, these Benches will support the amendments”.—[Official Report, 16/3/22; col. 297.]


She was as good as her word: she supported the amendment, along with the Leader of her party and the Chief Whip, and the amendment was carried, later to be overturned in another place. I was therefore surprised that the noble Baroness did not add her name to this amendment when I tabled it, and I look forward to her compelling speech in its favour.

Amendment 192 would require the Government to consult on the introduction of a “polluter pays” levy. Tobacco is a uniquely addictive and lethal consumer product, and this creates a perfect storm for consumers. The tobacco industry in this country continues to be in good health, unlike its customers, and companies continue to make significant profits: an estimated £900 million per year in the UK alone, with average profit margins of around 50% compared to 10% for manufacturing margins.

There are various estimated costs to society of smoking. That from ASH is £43.7 billion a year—perhaps the Government could share their own estimate—and it is the taxpayer who picks up the tab: costs to the NHS, costs to social care, lost productivity to our economy, and higher welfare bills. A “polluter pays” levy ensures that those who can and should pay, do, and implementing it would raise up to £700 million a year.

So how would it work? The Treasury consulted on a levy in 2014 and did not proceed, but what is proposed now is quite different and, crucially, it would not allow the industry to pass costs on to the consumer and would have no impact on the RPI.

The levy model proposed by the APPG on Smoking and Health would introduce a price cap on tobacco similar to what we do with utilities. That would limit the prices to manufacturing costs plus, say, a 10% profit margin. This would be in line with other consumer products and more than generous for an industry responsible for such high levels of harm. The Government would then introduce a new levy on the industry, to be paid for from its profits.

A consultation would allow this model to be “tested and shaped”, providing a much-needed boost to public finances. The public too share our support for this proposal, with 76% of adults in England in favour of a “polluter pays” levy.

I note that the amendment from the noble Earl, Lord Russell, on this same subject proposes to put the proceeds into

“a dedicated fund held by the Department of Health and Social Care”.

I have not included such hypothecation in my own amendment, but I fully support what he seeks to do. Some £700 million a year could be used to support 2 million more smokers to quit just in this Parliament and accelerate progress towards a smoke-free future. It is likely that funds would be left over, which could be used for other public health activities, helping the Government achieve their mission of reducing the gap in life expectancy between the richest and the poorest.

This is a measured, fair and practical proposal. It would protect the consumer, prevent industry manipulation, provide much-needed funding for the Treasury, and ensure that those who profit from an addictive and lethal product made a proper contribution to repairing the damage it causes. I look forward to the Minister’s reply.

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Baroness Merron Portrait Baroness Merron (Lab)
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No, that is not the case. I urge the noble Baroness, Lady Northover, to withdraw her amendment.

Baroness Northover Portrait Baroness Northover (LD)
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My Lords, this group is about the polluter paying and responsibility across a wide range of areas. On Amendment 12, on the practice of disclosing sales data, it is already in place in the United States—full data to the Government and partial to public sources. It is also the practice in Canada, so there is precedent for that. It is not seen as an unreasonable burden, but it is a useful public health tool. It is important to know, for public health reasons, which I and others have outlined, where sales are high.

The noble Baroness, Lady Fox, referred to growth. She might want to consider the economic and growth consequences of the ill-health costs to individuals, families and the NHS and the death that results for so many consumers of tobacco products, then factor that in when she is looking at growth in the United Kingdom. Tobacco kills, which she rightly referred to. I do not need to refer her to the cancer registries—that is self-evident. It is therefore appropriate that we address this. As a former student of Marx, as she identifies herself, she will be very familiar with the notion of exploitation, particularly of the poor and already disadvantaged, to which I have referred, and the difference at the moment in outcomes between groups in terms of equality.

This is an important area. We are seeking to strengthen the Government’s arm, as is always the case when you move from “may” to “must”. We look forward to further discussions with the Minister on how best we do that. In the meantime, I beg leave to withdraw my amendment.

Amendment 12 withdrawn.
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Earl Russell Portrait Earl Russell (LD)
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I am grateful for the noble Lord’s intervention. My first amendment would introduce a greater price point for entry into the market, but my second amendment is about banning little, plastic, pre-filled pods that have to go into supposedly reusable vapes and for which the manufacturers charge a premium. I would get rid of that, so that people could use a bottle to refill the vape. You would have a slightly more expensive base unit, but the daily running of that unit would be cheaper. Therefore, the savings generate over time. That is the fundamental proposition that I am putting forward.

The noble Lord makes a valid point about advertising. The better option is not to use the word “advertising” but to use the phrase “health education”. There is not enough knowledge about these products, and it would be good if people had better options to choose from.

I will also comment, very briefly, on the other amendments, which I forgot to discuss earlier. I have sympathy for Amendment 17A and for Amendment 18, which is in the names of noble Lord, Lord Moylan, and the noble Baroness, Lady Fox. These are important issues for people who are in mental health institutions or other institutions, where they are not free fully to leave or to get access to vaping products. It would be a mistake to restrict their ability to access those products.

Baroness Northover Portrait Baroness Northover (LD)
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My Lords, I will speak to my Amendment 28, which concerns free samples of tobacco and vaping products. I thank my noble friend Lady Walmsley for adding her support.

Although I understand that Clause 15 will take action on this issue, it is such an important matter and such a significant gap in current regulation that I wish to address it directly with my amendment. The promotion of tobacco and vaping products through the distribution of free samples is wholly unacceptable. The Tobacco Advertising and Promotion Act 2002, with which I was involved, explicitly banned that practice for tobacco. It is exactly what I saw in Africa when I was a DfID Minister, with primary age children given cigarettes as the tobacco industry saw its market decline in the West and sought to addict children in other parts of the world. If vapes were really only used for smoking cessation, why would they be so clearly targeted at children, as we have heard?

Since vapes have come on to the market, there have been multiple reports of such products being handed out to young people to get them addicted to nicotine. It is the route that my nephew, to whom I referred on Monday, and his friends, who are now unable to kick the smoking habit, arrived at cigarette smoking—via colourful vapes. It would be useful to publish the sales data, and we will see whether we have some useful data on potential upticks among children smoking as a result of vapes.

Public health campaigners have long called for the closing of the loophole that allows vapes to be given to children as part of a promotional activity. As far back as 2010, the Guardian reported that a 17 year-old had been given a free sample of BAT’s vape brand, without being told that it contained nicotine or being asked for age verification. Such promotions are often carried out by third-party marketeers at festivals, train stations and in city centres, with young, vibrant staff enticing people with their free products—but with limited explanation of the risks. Trading standards can do nothing about this, as vapes are not currently covered by existing restrictions.

My amendment came as a result of sitting on the Tube on 7 May this year and looking up and seeing the advert for Zyn that I am holding up. I know we are not supposed to use props, but this makes the point. Zyn, it says, is a “flavour you feel”. “No smoke, no vapour, no tobacco” is what that advert says in large type. Sounds benign, does it not? However, there is an asterisk to very small print that says it is derived from tobacco. Then there are the flavours: chilli guava, icy blackcurrant, citrus, black cherry, cool mint. Then it says, “Claim your free sample today”, with a double asterisk to another tiny warning and a minute warning underneath saying that it is not risk free—an understatement—that it contains nicotine, which is addictive, and that it should only be used by adults who would otherwise continue to smoke or use nicotine. Oh yes, just look at this advert. Do they put those warnings in bold colours and letters? Oh no, they do not. So do not tell me that this is not targeted at young people.

I was so angry to see that and that is why my amendment came forward. How can anyone justify seeking to draw children and young people in with an advert like that and sleep soundly at night? It is welcome that this Bill will finally address this issue, but it has taken an unacceptably long time to reach this point. The industry is, as ever, using all sorts of arguments to water this down, and we should not buy that. Young people who have never smoked should not be using vapes, as my noble friend Lord Russell has just said. Yet, 20% of 11 to 17 year-olds have tried vaping and 160,000 children at least vape daily.

I would be grateful if the Minister would confirm the following. First, will the Bill be robust enough to capture any future innovations the industry might devise? We have seen time and again how the tobacco industry exploits loopholes and adapts products to evade regulation. It is essential this practice of giving out free samples to hook young people on to addictive products ends with this Bill. Secondly, could the Minister comment on the timeframe and the reasoning behind it? I note that no further regulations are required but that the measure will come into force six months after Royal Assent. Is there any possibility that we could bring this forward? We have already waited five years for this change. I share the concern of the noble Lord, Lord Kamall, about time slipping on this. This is one of the most insidious forms of marketing, and we should crack down on it as swiftly as possible.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I will speak very briefly to this group of amendments. Amendment 16 is about age. My noble friend Lord Moylan said that young people are sensible. I agree with that. I think it follows from that that they are sensible enough to understand that Parliament may have prescribed different age limits for different activities, so I do not find that argument wholly conclusive but, on a more conciliatory note, I agree with what my noble friend said about Clause 12.

“A person commits an offence if the person has the management or control of premises on which a vape vending machine … is available for use”.


However, there is no provision for any exceptions.

My noble friend made a case for those mental health hospitals that have vending machines that enable patients to remain smoke free. Is it the case that, when the Bill becomes an Act, they will have to take those vape machines out and go through the whole process of licensing to be able continue to sell vaping products? Is it the case that, under Clause 16(3)

“The Secretary of State may by regulations create exceptions to the prohibition in subsection (1) or (2)”.


Is that the “get out of jail” card we need to solve the problem my noble friend rightly drew attention to?

My noble friend also touched on Amendment 17A, which relates to vaping machines in non-age-gated premises. The explanatory statement says that the amendment

“would permit the sale of vapes and other nicotine products through vending machines in only those premises that are already restricted to adults only”.

I wonder what those premises are, because younger people can go into pubs and clubs. What are these age-gated premises? I can think of nightclubs and the Chambers of the House of Lords and the House of Commons, but it would be helpful to hear in slightly more detail exactly what these exemptions might be.

I am cautious about any exemptions, because I see vaping products as a smoking-cessation tool. Allowing vaping products to be made available in pubs, clubs, restaurants, or wherever, tends more towards the recreational use of vaping, which I think we all want to downplay. I give way to the noble Baroness, who will explain what these age-gated premises are.

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Earl Howe Portrait Earl Howe (Con)
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My Lords, I turn first to Amendment 16, tabled by the noble Baroness, Lady Fox, and my noble friend Lord Parkinson. The amendment raises the broad question of how, as a society, we wish to define adulthood. From that point of view, I think the amendment is a useful one. Clause 10, like much of our statute book, assumes that 18 marks the threshold of adulthood—the age at which one may also contract, serve on a jury or purchase regulated products. Yet, as my noble friend Lord Moylan argued, proposals to extend the franchise to 16 and 17 year-olds invite us to reconsider that assumption. I shall be interested to hear what the Minister has to say about the amendment.

I turn to Amendment 18, tabled by my noble friend Lord Moylan and the noble Baroness, Lady Fox. We have in Clause 12 a proposed measure that would outlaw any vending machine that dispenses vapes or nicotine products to a paying customer. The question that my noble friend and the noble Baroness have posed is whether the Government are prepared to consider any exceptions to this hard and fast prohibition. Is there not a strong case for saying that, in a smoking cessation clinic where there are adult clinical staff guiding patients through a structured programme, or in a mental health unit where staff often find themselves dealing with patients in a high state of agitation, a vending machine dispensing vapes or nicotine products not only would do no harm but could be of considerable benefit to the well-being of the individuals being treated? In those clinical environments, vapes and nicotine products are not promoted for casual use. They have a utility, and their utility lies as a means of harm reduction under clinical supervision. Let us just remind ourselves that patients admitted to mental health settings, or being treated in one, are much more likely to be smokers than other members of the general population. The noble Baroness, Lady Fox, drew attention to that. For obvious reasons, there is a deep reluctance within mental health units to permit smoking on the premises. Access to vapes, on the other hand, is a far less contentious issue, I suggest.

I would be grateful if the Minister could say why the Bill makes no provision for exceptions, even narrow ones, to the ban on vending machines. I am not contesting the proposal to ban such machines in the majority of settings, but vapes are not the same as tobacco. I have been approached by one vending machine operator that supplies machines to adult-only venues such as clubs. It asked the same question in its briefing sheet. Why is it that, in a place where anyone entering has been vetted as being an adult, they are being denied access to a vending machine? I would be grateful for the Minister’s comment on that.

Amendment 21 from the noble Earl, Lord Russell, and the noble Baroness, Lady Walmsley, raises a rather different question. I appreciate the intent behind this amendment. The goal that the noble Earl and the noble Baroness are aiming at is of course a worthy one. However, I have three problems with what they are proposing. First, if one makes vaping too expensive, law-abiding citizens who wish to quit smoking will be deterred from doing so. That is surely a risk. Secondly, smokers who may be less concerned about the lawfulness of the products that they buy will be steered towards unregulated products and/or the black market. I suggest that, under this proposal, that is simply bound to happen. Thirdly, any minimum pricing arrangement will act as a dampener on competition, and hence a dampener on innovation. A good example of such innovation is the age-gating technology that my noble friend Lord Lansley spoke about in our previous Committee session—technology built into a product or its packaging that prevents underage use. Approaches of that kind should be explored before we ever consider blunt instruments such as statutory price controls.

Finally, I turn to Amendment 28, tabled by the noble Baronesses, Lady Northover and Lady Walmsley, which would prohibit the provision of free tobacco or vaping products through the course of business. Again, I completely understand and respect the motivation behind that proposal, but we should ask some questions about it. In the case of tobacco products, I am absolutely on the same wavelength as the noble Baronesses; at the same time, it would be helpful to know how much of a problem this now is.

First, is it not already illegal? If not, and if free samples of cigarettes, say, are being supplied by the manufacturers or importers to wholesalers or retailers, that sounds like an expensive exercise, bearing in mind the need for them to account to HMRC for the relevant tobacco duty, which I do not think they can avoid. What can the Minister tell us about that?

Secondly, on free samples of vapes, I listened carefully to the noble Baroness, Lady Northover, but I venture to say that different considerations apply to vapes compared to tobacco. My noble friend Lord Moylan was absolutely right: vapes are not in the same league of harm as tobacco products. They are also a smoking cessation tool. I would be the first to agree that free vapes should not be handed out to children. That is a given—

Baroness Northover Portrait Baroness Northover (LD)
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The advert I have here says that the samples they are giving out are actually derived from tobacco. Even though it says, “No smoke, no vape and no tobacco”, the advert states that the samples are derived from tobacco. My reference is therefore to tobacco products—that is the link there—but I also emphasise the point about nicotine.

Earl Howe Portrait Earl Howe (Con)
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If it is a tobacco product, I take the point, but I thought that the noble Baroness was also arguing about handing out free vapes. Making it illegal for a shopkeeper to supply an adult with a regulated vaping product as a free sample feels very much like an unreasonable restraint of trade. If someone enters a shop to buy cigarettes—let us say he is a smoker—and the shopkeeper offers him a free vape, what exactly is wrong with that, as long as the regulations are adhered to? Do we really want to criminalise that kind of free supply? I am afraid that I am not convinced.

The Bill already imposes a series of significant new obligations and compliance costs on legitimate businesses. The restrictions contained in Clauses 13 to 15 alone are substantial and will likely require many retailers to make complex and costly adjustments. To introduce further constraints and prohibitions, as well as a substantial potential liability, however well-intentioned, has to be thought about very carefully before we go down that path.

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Earl Howe Portrait Earl Howe (Con)
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To pick up on that, I ask the Minister to clarify the issue that was left slightly in the air earlier about the derivation of nicotine. While nicotine can be synthetically produced, it is derived from tobacco, but the point made by definition in the Bill is that a vaping product is a distinct product from a tobacco product. So the advertisement seen by the noble Baroness, Lady Northover, which I agree is highly regrettable, may be accurate in saying that the product is derived from tobacco but is not a tobacco product. Is that correct?

Baroness Northover Portrait Baroness Northover (LD)
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Can I comment on that? It has been very instructive to learn all about this subject. I could see a discussion occurring between the noble Earl and his noble friend but most nicotine is, in fact, derived from tobacco. This fits with what the advert I have here says, which is that the product advertised is derived from tobacco but does not contain tobacco leaf. Whether it is misleading for it to say, “No tobacco”, is another matter, but, clearly, dancing on the head of a pin is not very helpful here.

Earl Howe Portrait Earl Howe (Con)
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I respectfully disagree. It is helpful to dance on the head of a pin if we can distinguish “tobacco” from “tobacco product” and, again, distinguish a tobacco product from a vaping product. The Bill does that.

Baroness Northover Portrait Baroness Northover (LD)
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I disagree that we can necessarily distinguish between nicotine and a tobacco product, given that most nicotine products are derived from tobacco and are, therefore, tobacco products. However, the key thing here is that nicotine is being targeted at children, who often then graduate to smoking cigarettes. So you have not only an addiction but a potential route into the problem that we have worked on together for many years: reducing smoking, especially among the young, for all the reasons we know about.

Lord Patel Portrait Lord Patel (CB)
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May I join the argument? The noble Earl is quite right: there is a synthetic nicotine product, which is manufactured chemically. So you can have nicotine that is not a tobacco product. However, as far as we know, most of the nicotine used in vapes is derived from tobacco.

By the way, I want to come back, slightly tongue-in-cheek, on the noble Earl’s question about where it comes from. Of course, I was hoping that he would say, “From tomatoes, potatoes, nightshade and some other plants”, from which you can also get small amounts of nicotine.