Tobacco and Vapes Bill

Debate between Baroness Northover and Lord Young of Cookham
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 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.