(1 day, 20 hours ago)
Grand CommitteeMy Lords, these amendments in the name of the noble Baroness, Lady McIntosh of Pickering, the noble Lord, Lord Kamall, and the noble Earl, Lord Howe, from whom we will hear later, address the details of a licensing scheme, which could, I believe, be better worked out during consultation and are better put in regulations than on the face of the Bill.
I think there are problems with the suggestion that there should be a joint alcohol and tobacco products licence—as superficially attractive as that may sound. This is for two reasons. The first is practical; there are plenty of retailers who sell both ranges of products, but there are plenty who do not, including some small shops and specialist vaping retailers. Let us not overcomplicate this by having several kinds of licence: joint and single.
The second reason is even more serious, because the objectives of the two schemes are not the same. The objective of the tobacco and vapes licencing scheme should be public health. Indeed, that is the main justification for the generational ban and other restrictive aspects of this Bill. On the other hand, public health was not the objective of the design of the original alcohol licence, and things are set to get worse—which I will come to. Therefore, there are issues about putting the two together.
On Amendment 35, there is a case for restricting the density of tobacco and vapes licensed premises in a local area on public health grounds. Local authorities already have the powers to limit the density of fast-food outlets in certain areas, such as near schools, on the basis that the food they sell is often high in fat, salt and sugars, and is energy dense. Why should local authorities not have the same powers for the density of shops selling tobacco and its various products? Therefore, I oppose Amendment 35. Density is better decided by the local licensing authority, which knows and understands its own area. It is not something that should be on the face of the Bill but something that should be considered in consultation.
I turn now to Amendments 30 and 42. The Government have recently launched a rapid consultation on alcohol licensing, led by an industry task force that would see “growth” incorporated as an objective of the revised scheme, rather than public health. Its recommendations have been warmly welcomed by the Government, but I would advise caution, especially in the light of calls for joint tobacco and alcohol licences today. It is true that hospitality outlets can be important for people’s well-being and community cohesion and often provide economic benefits to local communities. However, many of them rely nowadays more on the sale of meals than on just alcohol and provide an opportunity for family outings. The implication by the industry in the recommendations of the task force is that people cannot enjoy themselves unless they are consuming alcohol. That is, of course, a nonsense suggestion. By the way, each of the three working groups was led by a senior member of the industry and there was no representation on the task force from the Department of Health and Social Care or public health bodies, despite public health acting as the responsible authority for local licensing committees.
The task force report defines the core purpose of licensing as economic enablement and sets out a series of mechanisms to promote that approach. The foreword in the Government’s response, written by the Minister for Services, Small Business and Exports, not only describes licensed hospitality as “foundational” to the UK economy but as selling “happiness, creating lasting memories”, and providing
“the glue that binds us together as a society”.
This is language that, if used in alcohol marketing, would probably breach the industry’s own code of conduct.
The task force’s recommendations would undermine the powers of elected local authorities in several ways: first, by the creation of a quasi-statutory national licensing policy framework to direct local decision-making; secondly, by the automatic addition of off-sales permissions to all on-sales licences; thirdly, by the enhanced powers for unelected licensing officers to override decisions of elected officers on licensing committees; fourthly, through the
“Requirement to link licensing to economic development and culture policies”;
fifthly, by a blanket “amnesty” on licensing conditions deemed to be
“outdated in the modern world”—
deemed by whom, I ask—and, finally, by the imposition of a higher evidential bar for objections to licence applications, with adherence determined solely by licensing officers.
That is why there should be no attempt to link alcohol licences under such a regime with tobacco retail licences. There are other ways of helping the hospitality industry rather than undermining the very foundation of the alcohol sales licensing regime by attacking local democracy in this way.
My Lords, in speaking to Amendments 35 and 42 in my name and that of my noble friend Lord Kamall, I will also express my strong support for Amendment 30, moved by my noble friend Lady McIntosh of Pickering. All the amendments in this group are guided by an important principle. The success of a new licensing regime will depend not only on the strength of the associated enforcement powers but on the fairness, proportionality and practicality with which those powers are exercised.
Amendment 30 is a sensible and fair proposal. It acknowledges that the vast majority of retailers selling tobacco and vape products do so responsibly and already operate under stringent regulatory regimes. Many of those businesses hold alcohol premises licences and are personal licence holders, and as such as are meticulous in complying with the rules and standards legally in force to prevent under-age sales and the supply of illicit goods.
Clause 16 will impose new licensing obligations, checks and costs. Taken together, for many small independent businesses they will represent a significant administrative and financial burden. My noble friend’s amendment simply asks that the Government recognise the existing history of compliance by allowing a streamlined process for those that have already demonstrated that they meet high licensing standards elsewhere. This would embed efficiency and fairness into the enforcement system and reward good practice. It would save time and cost for retailers and allow enforcement resources to be focused where they are most needed, on those who persistently flout the rules.
Amendment 35 turns to another crucial point of principle: fairness and proportionality in how licensing powers are applied. As drafted, Schedule 1 would allow licensing authorities to impose proximity or density restrictions, in effect preventing a licence being granted simply because a premises happens to fall within a designated zone or is near other retailers that sell similar products. That is an extremely broad and, frankly, concerning power. It risks punishing businesses not because they are non-compliant through choice or negligence but simply because of where they are located.
My Lords, I feel it is appropriate that we should have at least a short debate on Clauses 35, 36, 129 and 130, partly because they raise concerns that are very similar to those I had intended to flag when responding to the group of government amendments that were, in the event, not moved. Our debate on that group of amendments must remain a pleasure in store.
However, these clauses together confer on Ministers the power to take over the enforcement and prosecutions of local authorities or other enforcement authorities, either for individual cases or entire categories of cases. The inclusion of these powers in the Bill needs explaining, first, because they appear to go much further than is necessary or appropriate and, secondly, because they raise a number of important questions about the relationship between central and local enforcement and about accountability.
At present, the Bill rightly places day-to-day enforcement in the hands of local weights and measures authorities, which have the expertise, local knowledge and operational independence needed to make these judgments. Under these clauses, however, the Secretary of State or the devolved Ministers could simply direct that those functions are to be discharged instead by Ministers centrally. There is no statutory test to be met before that happens, no requirement for the local authority to have failed or refused to act, and no mechanism for consultation, appeal or review.
By any standard, that is a very wide power to exercise over democratically elected local authorities. In effect, it allows central government to displace local enforcement at will. Inherent in the exercise of this power is a risk that enforcement decisions become politicised. Local authorities act impartially and are guided by the evidential tests and the public interest. One can imagine a situation in which a future Government—I am not saying this one—choose to intervene and adopt an approach of their own when taking over investigations or prosecutions. How will we safeguard the impartiality of decision-making? How will the basis of any decisions be scrutinised or, indeed, challenged?
There is the added issue of proportionality. If these are intended as reserve powers for exceptional circumstances, the Bill should say so. At the moment, there are no thresholds, no published criteria and no requirement even to lay a Statement before Parliament when such powers are used.
We have tabled these stand part notices to probe the Government on several points, and I would be grateful if the Minister could respond to the following questions. First, why does the Secretary of State need these powers at all, given the enforcement architecture already in existence and set out elsewhere in the Bill? Secondly, in what circumstances does the Minister envisage using them? Is this a genuine power of last resort or something that might be used more routinely? Thirdly, what safeguards will there be for local authorities whose functions are overridden? Will they be consulted, or have the right of challenge? Fourthly, how will accountability work once a Minister takes over enforcement? Will there be a published direction, a report to Parliament or any means of scrutiny? Finally, how do these powers sit with the devolved authorities?
We all want effective enforcement of the law, and there may be rare cases where national co-ordination is required. However, I think we need some further and better particulars from the Minister.
My Lords, I am afraid I do not support the wish of the noble Lord, Lord Kamall, and the noble Earl, Lord Howe, to delete Clause 35 and its associated clauses. I do not believe that the backstop, which enables the Secretary of State to take over enforcement from trading standards, is a power grab; it is necessary in case a local authority goes into administration and cannot fund trading standards. Similar measures to protect social services in the case of a local authority going into administration can be found in the Care Act 2014, amended by the Health and Care Act 2022. The Tobacco and Related Products Regulations 2016 recognise that there may be situations where it is more appropriate for the Secretary of State to act rather than local weights and measures authorities.
(5 days, 20 hours ago)
Grand CommitteeMy Lords, on behalf of our Benches, I have added my name to my noble friend Lady Northover’s Amendment 12. I also support Amendment 148, of course, although my name is not on it yet; I have a bit of a track record on changing “may” to “must”, so I am very much in favour of that amendment.
As my noble friend said, the tobacco industry sits on a rich source of data that would help public health planners and practitioners to plan and deliver public health smoking cessation services in a granular way. That could help to reduce inequalities, so my noble friend’s Amendments 12 and 148 are no-brainers for the Government in the fight against health inequality, which I know they are in favour of winning. As the noble Lord, Lord Crisp, pointed out, if you have the data, you have a powerful weapon; the industry uses it and the Government should have it.
The data would also shine a light on the massive profits of the tobacco companies, which saw the writing on the wall about the decline of tobacco smoking and shifted part of their business model to hooking young people and existing smokers into being addicted to their nicotine vaping products instead. They then surrounded them with brightly coloured packaging, attractive-sounding flavours and masses of expensive advertising. One has to wonder why they spend so much money on advertising and the attractive displays in my local village shops. Ah, yes—it must be because that enables them to hook people to their profitable products for life.
These profits are addressed in Amendment 192 from the noble Lord, Lord Young of Cookham, which is supported by my noble friends Lord Rennard and Lady Finlay of Llandaff, and in my noble friend Lord Russell’s Amendment 194, which I also support. Both amendments propose a levy on the profits of tobacco companies. Tobacco and the nicotine it contains are uniquely harmful products, which is why they should be treated in this way. They are highly addictive for some people from their very first use, by the way; that is sometimes ignored. Tobacco kills more than 76,000 people in England every year—that is almost as many as were killed by Covid in just one year, in 2020—and the four manufacturers that are responsible for most of the UK’s tobacco sales make excessive profits that require regulation. It has been said that they make an estimated profit of £900 million a year in the UK, with an average net operating profit margin of about 50%; as my noble friend Lord Scriven pointed out, most manufacturers of other goods are quite satisfied with an average of 10%. Yet those companies currently pay very little corporation tax in the UK. The tobacco tax of £6.8 billion that they pay does not even scratch the surface of the harm they do; as has been pointed out, that tax is paid by the consumer and not by the producer.
In other areas of society, polluters are required to avoid and minimise pollution and to pay to clean it up. Tobacco companies make no effort to do either. In other monopoly situations, such as energy supply, the Government intervene, yet tobacco companies get away scot free, despite the fact that their products cost the NHS £1.82 billion annually and the ill health caused by them causes major suffering to individuals and families; they also have a major effect on productivity and the economy, costing society in England £43.7 billion a year.
Given this Government’s objectives on growth, I would have thought that a “polluter pays” tobacco levy would be very popular with them, as it is with the general public, 76% of whom support the policy. It could raise up to £700 million per year to fund vital smoking cessation and wider public health activities, as my noble friend Lord Russell suggests in his amendment. It could prevent industry manipulating prices to undermine the health aims of tobacco taxes. A levy would make tobacco less profitable in the UK and reduce industry incentives to lobby against government actions to achieve a smoke-free country. I know that they are very clever lobbyists. Although I trust that this Government will resist such lobbying, this would ensure that the cost burden of taxes is not shifted to consumers because a levy alongside a cap on manufacturer pricing would prevent manufacturers passing the costs on to consumers.
Smoking remains the leading cause of preventable death in the UK, alongside obesity caused by poor diet. Investing in the resources raised by the levy to help smokers quit, as in Amendment 194, will support the Government’s ambitions to halve the difference in healthy life expectancy and shift healthcare from treatment to prevention, an ambition outlined strongly in the Government’s 10-year health plan.
These amendments are very much in line with what the Government want. I hope that they will have the courage to accept them. The key principle is that the revenue to tackle the harms of tobacco should come from the industry, not the poor, addicted and often sick consumer, and the cost of the damage caused by tobacco should certainly not come from the taxpayer.
My Lords, this group of amendments addresses common themes: the regulation of the tobacco industry, its profits and its reporting obligations. Collectively, these raise important questions about transparency, fairness, proportionality and the limits of state intervention.
Beginning with Amendments 12 and 148, tabled by the noble Baronesses, Lady Northover and Lady Walmsley, these concern the provision and publication of information by tobacco manufacturers and importers. We recognise the intent behind these amendments: to improve the quality and availability of data so that public health policy can be better informed. Data, transparency and evidence-based policy-making are essential to an effective tobacco control strategy. However, would these amendments enable us to achieve that? Requiring every manufacturer and importer to publish detailed quarterly sales data broken down by product type, brand and region would give us more information, but how useful would it be? The Department of Health and Social Care and the Office for Health Improvement and Disparities already have access to significant data from HMRC such as market surveys and other reporting systems. The question usefully begged by this amendment is whether there are any gaps in that data that could usefully be filled.
This brings me to Amendment 148, also tabled by the noble Baroness, Lady Northover, which seeks to change Clause 95 so that the Secretary of State “must” rather than “may” make regulations requiring producers and importers to provide information about their products. I would like an answer to my earlier question before I jump one way or the other on that amendment. I appreciate the spirit in which she has tabled it. Having more data would certainly be useful, but we need to know exactly what data before we compel companies across the board to do one thing or another. It is generally better to provide Ministers with flexibility, allowing them to act where there is a clear and proportionate need, without imposing automatic or universal obligations on every business regardless of its size or nature.
(1 week, 1 day ago)
Grand CommitteeMy Lords, we were talking about the issue of one person almost the same age as another person having less freedom of choice. The point is that once you are addicted to nicotine, your freedom of choice is extremely limited, as we have just heard from my noble friend Lady Northover. She gave the example of her nephew, who found it extremely difficult to give up. My late mother-in-law was in the same position. She tried to give up smoking until she died—and she died of smoking, sadly.
It is very important that we have a robust system of enforcement. I look forward to hearing the Minister telling us about it, and what future measures the Government might take to reduce the number of illicit cigarettes—although I am told that it has declined by about 90% since 2000. One or two noble Lords mentioned the case in Australia. The fact is that it was a lack of robust enforcement that caused the problem in Australia. Despite that, the amount of people smoking has indeed gone down—but I agree with noble Lords who say that we need strong enforcement. When it comes to a smoker who, let us say, is my age, or who will be my age in many years’ time, who needs to provide some kind of ID, as long as it is not absolutely mandated, I am sure that some form of ID will be devised by clever people for those aged 82, and it will not be very difficult for them; they will just be able to do it, and that will sort that problem out altogether.
As noble Lords might have gathered, I support the Government’s generational approach to reaching the point of a smoke-free Britain. It is a public health crisis, as is obesity, on which the Government also need to take action. Lots of amendments are coming up about various aspects that have been mentioned today, such as age-gating, which we will discuss in greater detail. This has been a very extensive and passionate debate. I must say that I find myself a little surprised that so many of former Prime Minister Rishi Sunak’s party are so against what the Government are trying to do achieve his ambition. However, I shall leave it at that.
My Lords, I thank my noble friend Lord Murray for bringing forward the amendments in his name, because he has allowed us to begin this Committee by engaging with one of the central and, dare I say, most controversial pillars of this Bill: the generational smoking ban. It is fitting that we start with this big policy issue, because the clause goes to the very heart of what the Government are seeking to do in creating what they describe as a smoke-free generation.
Before I turn to the points made in the debate, it is worth reminding ourselves of the context in which we are discussing the Bill—and a number of noble Lords have underlined that context. Smoking remains the single biggest entirely preventable cause of illness, disability and death in our country. It kills some 80,000 people each year. It costs our NHS and social care systems more than £3 billion annually. Someone is admitted to hospital because of smoking almost every minute. It shortens lives, it devastates families, and it deepens inequality. Yet, as we debate this issue, we can recognise that, happily, the direction of travel is positive. Smoking rates have been falling: in 1990, nearly one in three adults smoked, but, today, that figure stands at just above one in 10. The number of children who smoke is falling as well.
Those are not arguments for complacency or for not legislating, but nor are they arguments for legislating carelessly. My noble friend Lord Murray asked some pertinent questions for the Minister to answer, in particular on the Windsor Framework and the dangers of a burgeoning illicit market, but, more generally, he was surely right to challenge the Government to explain exactly how the generational ban will operate. I say that he is right, because the proposal will represent a profound shift in how the law treats adults. It will, for the first time, make a permanent legal distinction between two adults, based solely on their dates of birth. One person aged 35, say, will be permitted to buy a legal product, while another person aged 34 will put a tobacconist in criminal jeopardy for selling him precisely the same product.
I emphasise that I pay tribute to my right honourable friend the former Prime Minister. Nevertheless, serious practical questions arise from that distinction, quite apart from the questions around discrimination throughout this Bill, to which we need—I say this to the Minister—to face up. Some of those questions have already been foreshadowed by my noble friends Lord Murray and Lord Moylan but, as a starter, let me pick up the question of enforcement, which came up in the contribution from the noble Lord, Lord Scriven. How exactly do the Government intend these measures to be policed? How much responsibility will fall on shopkeepers, how much on trading standards and how much on the police?
Then there is the impact on retailers. How will small and independent retailers be supported to implement the new age checks and avoid inadvertent breaches of the law? Are we just going to leave them to cope as best as they can? Importantly, there is also the question of public understanding. How will the Government communicate to the public, especially younger adults, that some people of more or less the same age may face entirely different legal restrictions?
Can the Minister confirm one point of detail, which we discussed in our meetings on the Bill ahead of Committee? Will a person born on or after 1 January 2009 be permitted to sell tobacco products to someone born before that date? In other words, will someone who is themselves legally prohibited from purchasing tobacco still be able to serve or sell such products to others who remain entitled to buy them? That may seem a minor question, but it is one of the many practical questions that shopkeepers and retailers are already asking. The answer will affect staffing and hiring practices. What age will an employee of a tobacconist have to be to handle tobacco sales? Those are not arguments against the generational ban, but I hope that the Minister can address these concerns in her reply.