Tobacco and Vapes Bill (Eighth sitting)

Debate between Andrew Gwynne and Liz Jarvis

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Andrew Gwynne]

I will first discuss the clause and then move on to the amendments. Clause 38 sets out how proceeds from the new fixed penalty notices in England and Wales must be used. I will also discuss the amendments that the hon. Member for Eastleigh has tabled on behalf of the Liberal Democrats.

The clause states that funds received from fixed penalty notices issues in relation to the licensing offences in the Bill must be returned to the relevant Consolidated Fund once the costs of investigating the offences and issuing the notice have been deducted. That will ensure that these fixed penalty notices remain cost-neutral and will not cause local authorities to incur additional cost burdens for enforcing a future licensing scheme. For all other offences, which carry a fixed penalty notice of £200, proceeds will be retained by local authorities and must be used in connection with their functions under this Bill, part 1 of the Health Act 2006, part 3 of the Public Health (Wales) Act 2017 and the Tobacco and Related Product Regulations 2016. That means that if local authority trading standards issue a fixed penalty notice—for example, to a retailer selling to someone under age—the local authority may retain the funds from the fixed penalty notice, and those funds must be used by the local authority to support the enforcement of tobacco and vape legislation. That will allow local authorities to cover the enforcement costs for issuing fixed penalty notices and to reinvest any remaining funds into their enforcement regimes.

The amendments to the clause proposed by the hon. Member for Eastleigh seek to ringfence the proceeds from the £2,500 fixed penalty notice for licensing offences for public health projects. They would achieve that by making it mandatory for any proceeds received by local authority trading standards from these fixed penalty notices to be allocated by local health and wellbeing boards to public health projects. Although I admire the hon. Lady’s ambition to further support public health—and who would not?—it would not be appropriate to enable local authorities to retain the fixed penalty notice proceeds in that way.

Councils already have a ringfenced budget for public health in England. The proceeds from the £2,500 fixed penalty notices for licensing offences were never intended as a revenue-generation mechanism. The fixed penalty notice is introduced to support the enforcement of the future licensing scheme and tobacco and vape sales regulations. It should continue to be the choice of trading standards officers to determine the appropriate enforcement action to take in a given case to achieve compliance. Enabling retention of fixed penalty notice proceeds for a different purpose risks distorting the operational priorities of the licensing scheme.

The £200 fixed penalty notice introduced by the Bill for offences such as under age sales are an exception. We worked carefully with His Majesty’s Treasury during the development of the Bill to enable trading standards to retain that relatively small value in order to support their procedures. To ensure that the future licensing scheme can be sustainably implemented, we have established that local authorities will be able to use the licensing fee to support them in covering the costs of administering and enforcing the licensing scheme, and that trading standards can deduct the costs of investigation and issuing fines from the FPN proceeds before returning the remainder to the Consolidated Fund.

My hon. Friend the Member for Cardiff West also mentioned the fact that the provision is not compliant with the reality of seeking to apply to both England and Wales, in that it makes specific reference to bodies that do not exist in Wales, namely the health and wellbeing boards, which only appertain to local authorities in England. I want to be clear that local authorities are receiving not just their public health grant but, in the financial year 2025-26, an additional £70 million from central Government and the Department of Health and Social Care to support local authority-led stop smoking services in England. We expect that investment will support our aim to help around 360,000 people to make quit attempts, and up to 198,000 successful quits a year.

Decisions for future years are subject to the spending review process, but that money, as the shadow Minister rightly pointed out, in part comes from the Consolidated Fund. So there is a virtuous circle of the kind that the hon. Member for Eastleigh rightly wants to see, in that there are direct correlations between money that my Department gets from His Majesty’s Treasury and money that the Treasury will get from not just those fixed penalty notices in the future, but other sources of income generation, including fines and penalties.

That money, in one form or another, almost certainly will be recycled into public health measures determined by Ministers and by Parliament and given to local authorities to determine how to spend at their local level. That could be through the public health grants, or through direct grants such as the smoking cessation or the drugs and alcohol grants that we make available to local authorities. But rest assured, there will be investment in public health, and that will come from money that my Department receives from His Majesty’s Treasury through the usual routes. With that, I ask the hon. Member for Eastleigh to withdraw her amendment.

[Liz Jarvis]

I will not be withdrawing the amendment.

Amendment 2 negatived.

Clause 38 ordered to stand part of the Bill.

Clause 39

Power to change amount of fixed penalties

Question proposed, That the clause stand part of the Bill.

Tobacco and Vapes Bill (Second sitting)

Debate between Andrew Gwynne and Liz Jarvis

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[Andrew Gwynne]

Q In an earlier answer that you gave to the shadow Minister, you talked about the two priorities of preventing new smoking and tackling youth vaping, alongside supporting the 6 million to quit. The Bill seeks to reduce youth vaping. How do you think we best achieve that while not deterring adult smokers from quitting?

Professor Linda Bauld: If I can start with the second part of your question, in terms of not deterring adult smokers, we need to continue making the products available for smoking cessation. We are not banning vapes—that has happened in a number of other countries, as the CMO for England was saying—but we are recognising the things that make them appealing, attractive and affordable to young people, and taking action on those. It is fine for the adult smoker not to be able to see a wide array of advertised products on the shop front, on the billboard or at the point of sale, but to know they are there behind the counter and ask for them. I also do not think that the adult smoker who is trying to quit cares about gummy bears or Coca-Cola flavours—maybe they want some flavours, but not all of them. It is about striking a balance.

Finally, although we are not here to talk about the funding of smoking cessation services today—certainly in England, you have made previous announcements about that—it is important that in clinical settings and through stop smoking services we can give good information about vaping and other cessation aids, and support people to quit that way.

[Liz Jarvis (Eastleigh) (LD)]

Q Do you think the Bill goes far enough to protect children and young people from the harmful effects of tobacco and vaping?

Professor Linda Bauld: It is very ambitious on tobacco. We will be the first in the world—after unfortunate events in New Zealand, from my personal perspective—to introduce the smoke-free generation policy, and the world is looking at us. That is good. In terms of protecting people from vaping, the Bill has a proportionate set of measures, but if I come back to the answer that I gave to the shadow Minister, we really need to keep our eye on the regulations and—going back to the Minister’s questions—make sure that we are striking a balance. Given the evidence that we have for much stronger regulations on vaping, I think this strikes the right balance, but we need to make sure that we do that in a proportionate way. Finally, to go back to the comments from the previous set of witnesses, we also need to make sure that local areas have the flexibility around some of the measures to adapt them for their local circumstances.