Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will publish the current price elasticities used to make forecasts of the tobacco and vaping markets.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
I refer the noble Lord to the answer I gave him on 4 June 2025 to question HL7693 reproduced below.
The Office for Budget Responsibility (OBR) publish details of their tobacco tax receipt forecast in the Economic and Fiscal Outlook (EFO) publication and forecast methodology page [1]. The OBR will provide further information on their analysis on request.
[1] https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/tobacco-duties/
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statement by Baroness Merron on 22 May (HLWS662), whether they consulted or informed any public health organisations of the decision to delay the legislation to regulate unhealthy food and drink advertisements on TV and online before publishing that statement.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to implementing advertising restrictions for less healthy food and drink on television and online, as part of its ambition to raise the healthiest generation of children ever. The decision to exempt brand advertising from these restrictions was made following consultation and was understood and agreed by Parliament during the passage of the legislation in 2021.
The consistent position of the Government, as re-confirmed in a written statement in this House on 22 April 2025, is that brand advertising is not captured by the restrictions, as the legislation only restricts adverts that could reasonably be considered to be for identifiable less healthy products.
Industry raised significant concerns in response to the Advertising Standards Authority’s (ASA) draft implementation guidance published for consultation in February 2025. We are aware that many brands have prepared advertising campaigns in good faith ahead of the previous coming into force date of 1 October 2025 and were concerned about how these adverts would be affected by the ASA’s implementation guidance.
There were several meetings between the Department of Health and Social Care and the Department of Culture, Media and Sport to discuss a wide range of options for resolving this issue. This culminated in the successful resolution set out in the written ministerial statement on 22 May 2025. This announced that the Government will lay legislation to explicitly exempt ‘brand advertising’ from the advertising restrictions. Providing legal clarification on the existing policy intention will provide certainty to industry and support businesses to invest in advertising with confidence, while ensuring that we deliver our commitment to protect children from exposure to junk food advertising and the lifelong harms of obesity.
Industry stakeholders were engaged shortly prior to the announcement so that they had sufficient time to agree their voluntary commitment to implement the restrictions from 1 October 2025. We informed other stakeholders at the earliest opportunity and will continue to engage with all stakeholders throughout the consultation on the draft regulations, which will be published soon.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statement by Baroness Merron on 22 May (HLWS662), what representations they received from (1) the food and drink industry, and (2) the advertising industry, about the regulations to restrict the advertising of unhealthy food; and whether those representations were a factor in the decision to delay those regulations.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to implementing advertising restrictions for less healthy food and drink on television and online, as part of its ambition to raise the healthiest generation of children ever. The decision to exempt brand advertising from these restrictions was made following consultation and was understood and agreed by Parliament during the passage of the legislation in 2021.
The consistent position of the Government, as re-confirmed in a written statement in this House on 22 April 2025, is that brand advertising is not captured by the restrictions, as the legislation only restricts adverts that could reasonably be considered to be for identifiable less healthy products.
Industry raised significant concerns in response to the Advertising Standards Authority’s (ASA) draft implementation guidance published for consultation in February 2025. We are aware that many brands have prepared advertising campaigns in good faith ahead of the previous coming into force date of 1 October 2025 and were concerned about how these adverts would be affected by the ASA’s implementation guidance.
There were several meetings between the Department of Health and Social Care and the Department of Culture, Media and Sport to discuss a wide range of options for resolving this issue. This culminated in the successful resolution set out in the written ministerial statement on 22 May 2025. This announced that the Government will lay legislation to explicitly exempt ‘brand advertising’ from the advertising restrictions. Providing legal clarification on the existing policy intention will provide certainty to industry and support businesses to invest in advertising with confidence, while ensuring that we deliver our commitment to protect children from exposure to junk food advertising and the lifelong harms of obesity.
Industry stakeholders were engaged shortly prior to the announcement so that they had sufficient time to agree their voluntary commitment to implement the restrictions from 1 October 2025. We informed other stakeholders at the earliest opportunity and will continue to engage with all stakeholders throughout the consultation on the draft regulations, which will be published soon.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statement by Baroness Merron on 22 May (HLWS662), on what date the food and media companies that signed the letter published on the Advertising Association's website were informed of the decision to delay regulations on TV and online advertising of unhealthy food.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to implementing advertising restrictions for less healthy food and drink on television and online, as part of its ambition to raise the healthiest generation of children ever. The decision to exempt brand advertising from these restrictions was made following consultation and was understood and agreed by Parliament during the passage of the legislation in 2021.
The consistent position of the Government, as re-confirmed in a written statement in this House on 22 April 2025, is that brand advertising is not captured by the restrictions, as the legislation only restricts adverts that could reasonably be considered to be for identifiable less healthy products.
Industry raised significant concerns in response to the Advertising Standards Authority’s (ASA) draft implementation guidance published for consultation in February 2025. We are aware that many brands have prepared advertising campaigns in good faith ahead of the previous coming into force date of 1 October 2025 and were concerned about how these adverts would be affected by the ASA’s implementation guidance.
There were several meetings between the Department of Health and Social Care and the Department of Culture, Media and Sport to discuss a wide range of options for resolving this issue. This culminated in the successful resolution set out in the written ministerial statement on 22 May 2025. This announced that the Government will lay legislation to explicitly exempt ‘brand advertising’ from the advertising restrictions. Providing legal clarification on the existing policy intention will provide certainty to industry and support businesses to invest in advertising with confidence, while ensuring that we deliver our commitment to protect children from exposure to junk food advertising and the lifelong harms of obesity.
Industry stakeholders were engaged shortly prior to the announcement so that they had sufficient time to agree their voluntary commitment to implement the restrictions from 1 October 2025. We informed other stakeholders at the earliest opportunity and will continue to engage with all stakeholders throughout the consultation on the draft regulations, which will be published soon.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statements by Baroness Merron on 22 April (HLWS587) and 22 May (HLWS662), what were the developments that led to the decision to delay the regulation of unhealthy food advertising in the time between those statements.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to implementing advertising restrictions for less healthy food and drink on television and online, as part of its ambition to raise the healthiest generation of children ever. The decision to exempt brand advertising from these restrictions was made following consultation and was understood and agreed by Parliament during the passage of the legislation in 2021.
The consistent position of the Government, as re-confirmed in a written statement in this House on 22 April 2025, is that brand advertising is not captured by the restrictions, as the legislation only restricts adverts that could reasonably be considered to be for identifiable less healthy products.
Industry raised significant concerns in response to the Advertising Standards Authority’s (ASA) draft implementation guidance published for consultation in February 2025. We are aware that many brands have prepared advertising campaigns in good faith ahead of the previous coming into force date of 1 October 2025 and were concerned about how these adverts would be affected by the ASA’s implementation guidance.
There were several meetings between the Department of Health and Social Care and the Department of Culture, Media and Sport to discuss a wide range of options for resolving this issue. This culminated in the successful resolution set out in the written ministerial statement on 22 May 2025. This announced that the Government will lay legislation to explicitly exempt ‘brand advertising’ from the advertising restrictions. Providing legal clarification on the existing policy intention will provide certainty to industry and support businesses to invest in advertising with confidence, while ensuring that we deliver our commitment to protect children from exposure to junk food advertising and the lifelong harms of obesity.
Industry stakeholders were engaged shortly prior to the announcement so that they had sufficient time to agree their voluntary commitment to implement the restrictions from 1 October 2025. We informed other stakeholders at the earliest opportunity and will continue to engage with all stakeholders throughout the consultation on the draft regulations, which will be published soon.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statement by Baroness Merron on 22 May (HLWS662), whether they considered alternatives to delaying the regulation of the advertising of unhealthy food on TV and online.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is committed to implementing advertising restrictions for less healthy food and drink on television and online, as part of its ambition to raise the healthiest generation of children ever. The decision to exempt brand advertising from these restrictions was made following consultation and was understood and agreed by Parliament during the passage of the legislation in 2021.
The consistent position of the Government, as re-confirmed in a written statement in this House on 22 April 2025, is that brand advertising is not captured by the restrictions, as the legislation only restricts adverts that could reasonably be considered to be for identifiable less healthy products.
Industry raised significant concerns in response to the Advertising Standards Authority’s (ASA) draft implementation guidance published for consultation in February 2025. We are aware that many brands have prepared advertising campaigns in good faith ahead of the previous coming into force date of 1 October 2025 and were concerned about how these adverts would be affected by the ASA’s implementation guidance.
There were several meetings between the Department of Health and Social Care and the Department of Culture, Media and Sport to discuss a wide range of options for resolving this issue. This culminated in the successful resolution set out in the written ministerial statement on 22 May 2025. This announced that the Government will lay legislation to explicitly exempt ‘brand advertising’ from the advertising restrictions. Providing legal clarification on the existing policy intention will provide certainty to industry and support businesses to invest in advertising with confidence, while ensuring that we deliver our commitment to protect children from exposure to junk food advertising and the lifelong harms of obesity.
Industry stakeholders were engaged shortly prior to the announcement so that they had sufficient time to agree their voluntary commitment to implement the restrictions from 1 October 2025. We informed other stakeholders at the earliest opportunity and will continue to engage with all stakeholders throughout the consultation on the draft regulations, which will be published soon.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government, further to the Written Statement by Baroness Merron on 22 May (HLWS662), what assessment they have made of the effectiveness of the Advertising Standards Authority in its role as the frontline regulator of the measures in the Health and Care Act 2022 about the advertising of unhealthy food and drink on TV and online.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government has set a bold ambition to raise the healthiest generation of children ever, and will take action to address the childhood obesity crisis. As part of this, we are committed to implementing the advertising restrictions for less healthy food and drink on television and online.
The Government appointed Ofcom as the statutory regulator for the advertising restrictions and this was set out in primary legislation via the Health and Care Act 2022. Ofcom appointed the Advertising Standards Authority as the frontline regulator of the advertising restrictions, using powers in the Communications Act 2003. It consulted on this appointment and published the statement, Regulation of advertising for less healthy food and drink: Implementation of new statutory restrictions, following the consultation in July 2023.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, whether they will publish the model used to calculate (1) price elasticities, and (2) income elasticities, for tobacco, as referenced in Tobacco duties: forecast methodology, published by the Office for Budgetary Responsibility on 7 March.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office for Budget Responsibility (OBR) publishes details of their tobacco tax receipt forecast in the Economic and Fiscal Outlook (EFO) publication and forecast methodology page. [1] The OBR provides further information on their analysis on request.
[1] https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/tobacco-duties/
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what assessment they have made of the financial implications to higher education institutions of the 6 per cent levy on foreign students' tuition fees, proposed in Restoring control over the immigration system, published on 12 May.
Answered by Baroness Smith of Malvern - Minister of State (Minister for Women and Equalities)
The immigration white paper sets out a series of measures that will achieve a reduction in net migration, while maintaining the UK’s globally competitive offer to international students and making a significant contribution to growth by boosting our skills base.
This includes the commitment to explore the introduction of a levy on higher education (HE) provider income from international students, with proceeds to be reinvested in the domestic HE and skills system. The department will set out more details around the levy in the Autumn Budget.
Analysis of the potential impacts is based on the levy applying to English HE providers only. The department will fully consult all the devolved governments on the implementation of the international student levy.
Asked by: Lord Rennard (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the extent to which tobacco industry pricing strategies undermine the objectives of the minimum excise tax and tobacco excise tax to reduce smoking prevalence.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Like most businesses across the economy, tobacco producers and retailers are free to set prices for their products. Evidence suggests that close to 100% of tax increases, and in many cases more, is passed through to consumers through prices. How this is distributed across products is a matter for the individual firms.
The UK has some of the highest tobacco taxes in the world which have helped reduce smoking prevalence to 11.9%.
In order to protect the public health objectives of tobacco taxation the Minimum Excise Tax sets a minimum amount of duty collected on a pack of cigarettes. This discourages manufacturers from selling cheap cigarettes as it reduces the profitability of cigarettes sold at or below the trigger price of £13.59 for a pack of 20 cigarettes.