Tobacco and Vapes Bill

Earl Russell Excerpts

Report stage
Tuesday 3rd March 2026 Lords Chamber

[Earl Russell (LD)]

My Lords, I will respond to this group of amendments concerning the proposed retail licence scheme for tobacco and nicotine products. We welcome the inclusion of a retail licensing scheme in this Bill. This is a significant and constructive addition to earlier versions. The proposal represents a major step forward in strengthening the regulation of tobacco and nicotine sales in the UK. It brings the sale of tobacco into line with established practice for alcohol. Tobacco, of course, remains the single most harmful product that is still readily available. It is the single biggest cause of preventable illness and early death in the United Kingdom. It therefore follows that the sale of these products should be subject to comparable regulatory oversight. Extending the oversight to vapes and other nicotine products will further assist trading standards in addressing non-compliant, unregistered and under-age sales. This combination of proportionate regulation and clear enforcement powers will help to protect both the public and responsible retailers from unscrupulous and illegal competition.

The principle underpinning this reform is simple: the right to sell products that carry health risks must come with clear responsibilities. We want a system that supports compliance, deters abuse and places public health at its heart. Amendment 21A, tabled by the noble Lord, Lord Kamall, and the noble Earl, Lord Howe, would ensure a minimum of a one-year gap between regulations being passed and coming into effect, allowing for a transition period. We entirely understand the wish to allow retailers, local authorities and other enforcement bodies adequate time to prepare for the new framework. Implementation must be orderly and practical. However, setting a fixed one-year time delay in primary legislation risks creating unnecessarily rigid constraints. Some elements of the scheme may be ready to begin earlier, while others might benefit from a longer period. The Government’s approach—to determine the precise timing through secondary legislation, informed by evidence gathered from those affected through consultation and negotiation—will ensure that that transition happens as smoothly and credibly as possible.

Turning to Amendments 23, 30, 43, 45, 114 and 115, I have listened carefully to the points made by the noble Earl, Lord Lindsay, regarding how existing specialist tobacconists should be treated within the new regime, including on transitional protection and possible exemptions. We acknowledge that the Government have already made some considerable steps in these areas, and we fully recognise the intention here: to try to give certainty to small specialist retailers who have operated responsibly and reasonably within the law for many years. However, these amendments would, in effect, enshrine grandfather rights in primary legislation, automatically conferring licences or permanent exemptions from any future limits on the number or distribution of these outlets throughout the United Kingdom and the devolved Administrations. That would effectively pre-empt the consultation process and remove discretion before any evidence has been gathered or assessed in any way.

It is important that all aspects of eligibility, transitional arrangements and the scope of any future caps or location-based controls are properly considered through consultation, considering not only the interests of existing traders but the wider objectives of public health, community protection and fair enforcement. Given that this applies to existing retailers, not new ones, it does seem that these points should be made within the consultation. We hope that the Minister intends to do that and is open and considerate to these small and normally very compliant retailers—a point that has been made several times. We imagine that the retail licensing scheme will differentiate between the different types of retailers; but given that all details have yet to be confirmed, these amendments feel premature to us.

Amendments 24 and 25 relate to national registers and a unified digital portal. Again, to us, it feels like these things will be necessary for any licensing scheme, and we therefore assume that these amendments are not necessary, but it would be helpful if the Minister could confirm that. On Amendments 31 and 44 and alcohol licences, we believe that this is already possible, but it would be useful if the Minister could confirm that.

I would like to pick up on one point that was made in the debate. It would be helpful if the Minister could say a word about how breaches made under one licence would be communicated and passed on to the people who are regulating the other licences, and how she feels these two licensing schemes would interact with each other, specifically where breaches have taken place.

[The Parliamentary Under-Secretary of State, Department of Health and Social Care (Baroness Merron) (Lab)]

My Lords, I am most grateful to noble Lords for their contributions to this debate, as well as the engagement they have been good enough to give their time to before Report.

Let me start with the amendments from the noble Earl, Lord Lindsay. The UK Government, Welsh Government and Northern Ireland Executive are carefully considering the design of the licensing scheme. A recent joint call for evidence asked detailed questions about implementation. This included specifically inviting feedback on whether applications for existing businesses should be treated differently from those for new businesses, and whether factors such as the location and density of retailers should have a role in granting licensing. I know, particularly from the debate today, that the question about existing businesses is a matter of concern to noble Lords.

We are aware that, under reforms to alcohol licensing through the Licensing Act, existing compliant businesses were indeed brought on to the new system, as noble Lords have referred to before, using grandfathering arrangements. I can assure noble Lords that we are considering this carefully alongside the feedback from our call for evidence, and we will invite further feedback when we consult on our proposals. However, the main point I would like to emphasise—a number of noble Lords have asked about this, and rightly so—is that, as I have said before, the Government do not wish to create a scheme which arbitrarily puts law-abiding retailers out of business. That is absolutely not the intent of this policy.

The noble Lord, Lord Johnson, the noble Earl, Lord Russell, and my noble friend Lord Mendelsohn, along with other noble Lords, raised questions about specialist tobacconists, which we have discussed, and rightly so, on a number of occasions. With regard to various regulations that we have spoken about, and on specialist tobacconists broadly, as the noble lord, Lord Johnson, acknowledged, I gave the assurances on day 1 of Report last week, and I hope they have been heard.

We want a scheme that is proportionate and fair, as I believe noble Lords do, particularly to the many existing businesses that operate responsibly—I emphasise that, because they deserve credit—but we also want to deter those who break the law, which was called for by the noble Lord, Lord Strathcarron. Again, feedback on our proposals will help us strike the right balance. While I cannot accept the noble Earl’s amendment, I hope I have provided some reassurance that we are considering the details of this scheme in a way that is sympathetic to his aims.

I am grateful to the noble Lord, Lord Udny-Lister, for tabling Amendments 24 and 25 and to the noble Lord, Lord Kamall, for tabling Amendment 21A. I am sympathetic to what noble Lords are seeking to achieve with these amendments. We agree with the need to introduce more rigour around who can sell these products and to minimise additional burdens on retailers and local authorities as far as possible. We also share the desire of the noble Lord, Lord Kamall, to ensure that retailers have enough time to prepare for the new licensing scheme. However, I believe these amendments are not needed as they are about how the scheme is implemented effectively. This is something we need to consider properly—the noble Earl, Lord Russell, referred to this—through consultation.

I can confirm to the noble Earl, Lord Howe, as I have before, that we are in regular contact with retail associations on implementation of the Bill, including the design of the future licensing scheme. This work will continue.

I know how strongly the noble Lord, Lord Lansley, feels about the point that he is raising. We have engaged with the UK’s main independent vaping bodies—the UK Vaping Industry Association and the Independent British Vape Trade Association—and that engagement will continue. We will continue to hear their considerations and those of their members, but ultimately our policy decisions on future regulations will be guided, as noble Lords are aware, by evidence to protect and improve public health. I appreciate the view of the noble Lord, Lord Lansley, which is different from the one that I am suggesting, but I hope he can be reassured about our engagement directly with those bodies because we feel that is the right thing to do.

I want again to reference our call for evidence, which asked about what support retailers and local authorities may require. It encouraged feedback on what works for existing licensing schemes. It also asked a specific question about how long is required to implement the scheme. These are all things rightly of concern to noble Lords in this group. The noble Earl, Lord Howe, raised a point about timings, how the timetable will go and including a lead-in time. We are considering these issues carefully and will reflect on the feedback that we have received before consulting on our proposals. The noble Earl, Lord Howe, understandably asked for an update on the feedback in the call for evidence. That is important because the feedback will, as the noble Earl knows, inform our proposals for consultation. I am not able today to provide the update that the noble Earl rightly seeks, not least because we are still considering the returns from the call for evidence, which closed at the end of last year. But I can say that in our view there is no need to introduce legislative requirements, as in these amendments, before consultation has taken place. The noble Earl, Lord Russell, made a point about the amendments being somewhat premature, but I know they have the best of intentions. The Government are fully committed to ensuring that there is fair and reasonable time for businesses to adapt to any new regulatory regime.

Turning to Amendments 31 and 44 from the noble Lord, Lord Udny-Lister, I am again sympathetic to what he is seeking to achieve. Where a business is found to have not complied with tobacco and vape legislation, it makes sense to bring into question whether that business is acting responsibly in relation to other products. However, any action that licensing authorities take against businesses should, as we would all expect, be justifiable and proportionate. A decision to suspend or revoke a business’s licence might have a significant impact on its livelihood and should not be taken lightly. Noble Lords have rightly made that point in this Chamber.

We are talking here about different products; it might not always be the case that non-compliance with one licensing scheme means that a business is non-compliant with another. It is important that licensing authorities take decisions with evidence of the business’s capability to sell specific products in line with the objectives of the respective licensing schemes. However, I agree that breaching a tobacco and vape licence may indeed be a useful signal for licensing authorities to more closely investigate a business’s compliance with their alcohol licence or vice versa; this is something that the noble Earl, Lord Russell, also asked about. Licensing authorities can and should use their judgment and knowledge of a business’s track record to inform the level of scrutiny that they apply. This includes, where there are concerns that a business is not complying with one scheme, carrying out additional checks to ensure compliance with other licences that it may hold and taking appropriate action where needed.

I hope that noble Lords have been reassured not only today but in the engagement that we have had prior to today, and that the noble Earl will feel able to withdraw the amendment.

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[Earl Russell (LD)]

My Lords, I will respond to this group of minor and technical government amendments, which relate primarily to enforcement and regulation-making powers. I thank the Minister for her clear explanation of these technical and complex but necessary clarifications within the Bill. Briefly, our Benches appreciate the explanation given but we fully support what the Government are doing in these amendments and have no particular concerns with them. In the interest of time, I will avoid going into the detail, but we have no objection to any of these amendments.

[Baroness Merron (Lab)]

I will also be brief. I am grateful for the support of the noble Earl, Lord Russell. As I stated in my opening speech, these amendments serve to strengthen the overall enforcement of the Bill, as well as the processes for future regulation—something that I know is of concern to both Front Benches, as well as all noble Lords. For this reason, I beg to move the amendment.

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[Lord Lansley (Con)]

My Lords, I am glad to be able to introduce this group and, in particular, to speak to my Amendment 124. This group is about the features of products in Clauses 89 and 90—not the ones that we have just discussed but in particular the technology features to be found in products.

If I can jog to the later amendments, government Amendments 130 and 132 and my Amendment 131 relate to a subject that a number of noble Lords will recall we discussed in Committee. We discussed whether there should be powers in the Bill to regulate the technology in vapes such that the mechanism for regulation would not only be at point of sale but could also be at point of use. My Amendment 131 is designed specifically to achieve that. The Minister has been listening again, and I am pleased to have the opportunity again to thank her for her engagement and that of officials. I also thank her for the amendments she has now brought forward.

The Minister’s Amendments 130 and 132 together would have the effect of allowing for the features of a product to include the technology associated with that and, in Amendment 132, the software included with that technology. What is the point of that? It is to be able to secure that known technology which would allow age gating and verification, linking the electronics in the vape to a smartphone with age verification built into it. This would enable us to provide that only verified adults would be able to use vapes.

What is really interesting is that this is not speculative: the technology is presented to the Food and Drug Administration in America and the latest information I have from IKE Tech, which I thank for its work on this, is the application for a pre-market tobacco product, including a human factors study. In tests, 100% of adults were able to access the product successfully, while 0% of under-age users were able to do so. It is an effective technology.

If I can anticipate the Minister’s view, it is that Ministers are not yet convinced that this is the approach to take; they want to ensure that there is effective point of sale verification. However, I hope they agree that, given the progress that has been made, not least through the FDA in America, which will be demonstrated in a substantial market, the combination of point of sale and point of use may be necessary in future to achieve the level of assurance about age gating to vapes that we want to achieve. At the moment—the noble Baroness, Lady Fox, is not with us at the moment, so I am able to quote from Action on Smoking and Health—ASH tells us that nearly half of under-age vapers are buying them from shops, so there is a substantial job to be done. We know that nearly a quarter of under-age vapers receive them via proxy purchases. We will not eliminate proxy purchases through the point of sale restriction, but age gating, in the technology of the product itself, may achieve exactly that.

I think we are all agreed—at least, I hope we are —following the debate in Committee, when we were supported by my noble friends on the Front Bench, as well as the noble Baroness, Lady Walmsley, and the Liberal Democrat Benches, that we want to have this power available, and I hope that Ministers will look actively at whether this is a desirable thing to achieve. Government Amendments 130 and 132 will achieve that.

There is also the question of Amendment 124, which is the basis of this debate. It relates to Clause 89 and the technology essentially in the packaging of vaping and nicotine products. I shall not press the amendment, because I am assured by the Minister in our conversations that the powers available in Clause 89 would allow that the kind of technology for authentication of a product can be specified. We want to put into products a smart tag, which we discussed previously, and is effectively a near field communication tag embedded in the packaging to enable tracking of illicit products, giving real-time identification of the history of a product by enforcement authorities. It would also enable retailers and consumers with the appropriate technology in their smartphones to assure themselves of the authenticity and safety of a product that was available to them, doing so in a way which, unlike QR codes which can be copied, and some of the other coding systems presently used, can be done in a unique token ID system embedded in blockchain, meaning that it would not be able to be removed, copied or circumvented. I hope that the Minister will be able to assure us that Clause 89 already has the powers necessary to include technology as sophisticated as this. I beg to move.

[Earl Russell (LD)]

My Lords, this group relates to the technology in devices. Government Amendments 130 and 132 are, we understand, designed to future-proof this legislation, particularly to prevent the placing of video games inside vaping devices. We on these Benches welcome the intention and the future-proofing of the legislation. This is of the utmost importance; we see it time and again and are right to expect that the tobacco industry will react to this legislation when it hits the statute book.

This is not abstract—it is based on real-life evidence and real-life vapes that exist. Cigarette companies are now producing vaping devices that incorporate video games, particularly retro video games, and even virtual pets. For some, this might appear as not that important or essential, but nothing could be further from the truth. The linking of nicotine addiction with a gaming addiction, and the linking with different rewards and sensory interactions, are extremely powerful and the motivation is only about increasing profits for Big Tobacco.

Looking at it in more detail so that your Lordships understand, the points that users can get in the games on the vaping devices are linked to the number of puffs they take, how frequently they take them and how often they interact with their vaping device. They can compare scores with their friends, and virtual pets can die if people do not take enough nicotine. This might look playful, but it is about feeding and deepening individual addiction to these devices. They are extremely powerful and harmful, particularly to the young people at whom they are aimed.

One of these new devices has apparently been viewed over 12 million times. British American Tobacco’s latest device, Vuse Ultra, was recently dubbed “the future of vaping”. These devices are available in the UK, and the market will inevitably grow if there are loopholes in the legislation. The devices push the boundaries, so it is important that the Government regulate them.

As we heard, the oversight remains weak, as do trading standards; the devices get into our young people’s hands; they might predominantly be purchased in shops, through friends or even sometimes parents. Online restrictions are not as good as they should be. These are important issues.

We welcome the two government amendments, but is the Minister convinced that the Government really have all the powers they need to future-proof this legislation? Do they feel that they have adequate powers in the Bill and future regulations to prevent vaping devices being linked to any form of online data collection and storage; to prevent the linking of vapes to apps in phones via Bluetooth, QR codes or joining the website; to stop the linking of users’ individual puff counts to games or online collection; and to stop the actual connection between the number and times of puffs taken and access to forms of promotion, discount or VIP passes? This is clearly where the industry would like to go if the guardrails are not provided by the Government.

I also welcome the amendment from the noble Lord, Lord Lansley. Speaking to the words that he used, the hope is that government Amendments 132 and 130 will cover Amendment 131, but it would be good to have the Minister confirm that.

Finally, Amendment 124 is about the technology within the packaging and whether the Government feel that they have the powers they need to put in these near-field tracking devices to make sure that these are genuine products, not fraudulent or unreal. Do the Government need Amendment 124 to feel they can make sure that the products available in the shops are legal and not counterfeit, or are they satisfied with what they have?

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[Lord Strathcarron (Non-Afl)]

My Lords, very briefly, I support Amendment 168 in the name of the noble Lord, Lord Sharpe, and of other noble Lords, because it seems so reasonable. Surely there is no harm done if the advertisement is in a licensed premises; is not visible, except from inside the venue; is not for a tobacco product; mentions a smoke- or vape-free area; and is age-restricted to adults only. I cannot see what there is to object to, unless we are saying that the age restrictions do not work—in which case, why are we pressing ahead with a generational ban in the first place? Do we really want to get into this overreaching, overregulated situation where the compulsory cure is worse than the voluntary disease—one entered into willingly and knowingly by consenting adults?

I particularly support subsection (3) of the proposed new clause. It asks for further investigation into the effects on the hospitality industry, which is already suffering the devastating consequences of other policies. It would be good to hear what losing these marketing revenue streams will mean for those who have to run a business to make a profit in order to employ people, especially bearing in mind that recent policies have cost nearly 100,000 jobs and are responsible for nearly 50% of all job losses.

[Earl Russell (LD)]

My Lords, I will respond to this group on advertising and sponsorship. On these Benches, we feel that it is essential that the Bill strikes the right balance between regulating the advertisement and sponsorship of nicotine products, to ensure that they cannot be marketed in ways that appeal to children, and allowing their promotion to adults who smoke as a way to quit smoking.

I have listened to the speeches that have been made in this group. The initial response in my head is that we are facing an absolute explosion in vaping, particularly among our children and young people. I do not think that the pub industry is going to survive on the back of vape advertising, and I do not particularly feel that we need more advertising for vapes. I listened to the argument on education, but education is not advertising, and I do not trust the industry to do the job of educating because they are interested in one thing, and that is not education but profits.

Responding to this group, I think there is a background problem here. We already have too many loopholes in the system. On the side of TfL buses, it is perfectly possible to see huge adverts for nicotine pouches with the health warnings written in tiny lettering. We already have problems with this. Big tobacco knows that marketing works, and it uses it for one reason. We need to be absolutely clear that the purpose of the Bill is not only to bring about a generational ban. We do not want to replace tobacco with vapes. Vapes are there to help and support people to stop smoking; they are not a whole new revenue stream for big tobacco to enjoy for ever more as a sop for it having to stop selling its products that kill everybody. That is clear.

ASH data on nicotine pouches has shown that, between just 2024 and 2025, awareness of this market has grown from 38% to 43% among young people in Britain, and that nearly 4% of teenagers now report having tried nicotine pouches. This advertising is powerful and it works; that is why these companies use it. We feel that the Bill closes the current regulatory loophole while still allowing nicotine products to be promoted as a cessation device. We feel that this is the right place for the legislation to be. It strikes a considered and appropriate balance to maximise the public health benefits, which is where our concentration needs to be. It does not need to be on promoting vapes or anything else; this Bill is about promoting public health.

Turning to the amendments, Amendment 168 would allow the advertising of non-tobacco products in hospitality areas. This is not appropriate. Hospitality areas are not the right settings. This would give a false impression that these products are for recreational use and not for smoking cessation, and it would potentially create a massive loophole in the middle of the Bill that will be exploited mercilessly by the industry. We have heard about its ever-ready need to put forward legal claims, whether it will win them or not.

I recognise some of the points that the noble Baroness, Lady Fox, made, as I said, and congratulate her on having stopped smoking. I agree with her on the need to have availability of vapes and better education, and I agree with her on the absolute need to maintain the flavours in vaping products for smoking cessation. However, I have to say that there is a greater risk with this amendment that these products would be seen as recreational and not for smoking cessation; to my mind, that is where our concentration needs to be.

On Amendment 152, this issue was discussed in Committee, and I thought that the Minister explained that the provision mirrored the approach taken on existing tobacco advertising and promotions, and we were satisfied with that.

Finally, Amendments 155, 157, 159, 161, 163 and 169 aim to remove the powers to restrict advertisement of nicotine products and heated tobacco unless there is a consultation with business. Again, we do not support this. It is already illegal to advertise heated tobacco under the Tobacco Advertising and Promotion Act, and we just do not support those amendments.