Tobacco and Vapes Bill (Seventh sitting)

Gregory Stafford Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

Before imposing a financial penalty, the local weights and measures authority must issue a written notice of intent and allow for a period for representations to give the person the opportunity to challenge the proposed financial penalty. If, after the period for representations, the local authority decides to impose a financial penalty, it must give a final written notice.

[Gregory Stafford (Farnham and Bordon) (Con)]

For clarity, does that notice give notice of the amount of the penalty or just that a penalty will be imposed? Can the retailer appeal to the weights and measures authority about whether they will get a fine, or are they simply told the amount of the fine that they are likely to get? If my hon. Friend does not know, perhaps the Minister might.

[Dr Johnson]

I am afraid I do not think the schedule says that, so I do not know the answer. Presumably, the Minister will know the answer—or his civil servants will—and will be able to provide it in his summing up, so I shall move on.

Before the notice of intent is given, the final notice can be withdrawn or amended to reduce the penalty amount at any time by written notice. The person has a right to appeal to the magistrates court against the decision to impose a financial penalty or against the amount of the penalty. To go back to the point of my hon. Friend the Member for Farnham and Bordon, there is an opportunity to appeal the amount if one wishes to do so.

The schedule will enable an independent decision and establishes the appeals procedure to be followed. If a person fails to pay either the whole or a part of the financial penalty within the given period, the unpaid amount may be recovered as if it were payable under a county court order—so there is pretty stiff insurance that it will get paid. Any proceeds received from financial penalties must be returned to the Consolidated Fund once enforcement costs to investigate an issued penalty have been deducted by the local weights and measures authority.

Clause 19 relates to the retail licensing for Wales. As in clause 16, subsection (1) establishes that individuals must hold a personal licence to engage in activities such as selling relevant products. Subsection (2) extends those licensing requirements to ensure that the premises is licensed for activities involving relevant products. In line with clause 16, subsection (3) gives Welsh Ministers, in this case, the authority to create exceptions to the licensing regulations and requirements set out in subsections (1) and (2). Subsection (4) mandates that Welsh Ministers develop the regulations for establishment and operation of personal and premises licences.

[Gregory Stafford]

I am not clear what sort of exceptions we might be talking about in clauses 16 and 19 being made by Westminster Ministers or Welsh Government Ministers—and I assume there will be a corollary in the other devolved nations when we get to them.

[Dr Johnson]

I am not clear about that either, but I am sure the Minister will elucidate what exceptions he sees and when someone or somewhere would be used for selling such products without a licence.

[Dr Johnson]

The hon. Gentleman makes a good point. It is important, however, that those who are selling online and those who are selling in shops have to have a licence to do so. I hope that the Minister does not intend to exempt online retailers from the need to have a licence to sell such products—he is shaking his head, so I suggest that is not the case, which is good.

One reason for tabling new clause 10 was to highlight the importance of ensuring that online retailers are held to the same standards as those real-world retailers. We have talked previously about ensuring that online apps and online sales cannot be used as a get-around—similar to vending machines, for example. It is important to ensure that the online world is not used to get around the Government’s intention to prevent smoking and the purchase of smoking, vaping and nicotine products by under-age individuals.

To return to clause 19, subsection (5) requires Welsh Ministers to consult with relevant stakeholders before making regulations, which is sensible. Subsection (7) specifies that the regulations are subject to the affirmative resolution procedure, which for Wales means that the proposed regulations must be formally approved by the Senedd before becoming law, increasing democratic accountability and providing an extra layer of scrutiny. Respect for Welsh devolution, as we talked about in the last session, is therefore included within the Bill.

Schedule 3 provides for retail licensing schemes in Wales, making provision regarding the granting of a licence in Wales, including provisions meaning that a licensing authority cannot grant a licence to premises in a particular area, for example, in proximity to a school, and limiting the number of licences within a particular area. We heard previously that specifying that licensed premises should not be near a school could cause difficulties in some rural areas where there may be only one shop in that village and no shops for many miles around it. That is one of the reasons decisions are made locally, because the local individuals providing those licences know the local circumstances, and that would need to be done cautiously. The regulations will also specify the duration of the licence, how it is enforced and the appeals process.

Clause 20 relates to offences in connection with licences in Wales and sets out how offences are committed, along with the penalties that may be put in place. I will not go through that in any more detail.

Clause 21 talks about the financial penalties in Wales. We have talked previously about how it is a matter for the devolved nations to decide how high those penalties should be. Subsection (1) grants the local weights and measures authorities in Wales the powers to impose those financial penalties relating to a breach of conditions attached to a personal or premises licence.

Schedule 4 outlines the procedure for local authorities in Wales, such as trading standards, to impose financial penalties for breaching licence conditions. Again, before imposing a penalty, authorities must issue a notice of intent and allow time for it to be challenged. If a penalty is imposed, a final notice is issued, which can be withdrawn or reduced, and the person can appeal the decision or the penalty amount to the magistrates court. Unpaid penalties can be recovered as if they were payable under an order of the county court and proceeds, after enforcement costs, are returned to the Welsh Consolidated Fund.

Clause 22 is the repeal of register of retailers of tobacco and nicotine products in Wales. It proposes to repeal chapter 2 in part 3 of the Public Health (Wales) Act 2017, which established a regulatory framework for retailers of tobacco and nicotine products through a centralised registration system. Clearly, if this Bill passes, that provision will no longer be required because the clauses in the Bill provide for new provisions. Clause 22 repeals that chapter of the 2017 Act so that it can be replaced, which is sensible.

[Gregory Stafford]

I completely understand the practical need to repeal a piece of legislation that is no longer workable under the new Bill, but can my hon. Friend assure me that everything in the previous legislation that is appropriate has been transferred into the current legislation, so that nothing has fallen through the cracks? If she is not an expert in Welsh legislation, perhaps the Minister could help when he responds.

[Dr Johnson]

Chapter 2 of part 3 of the Public Health (Wales) Act 2017, which is being repealed by the Bill, establishes a regulatory framework for retailers of tobacco and nicotine products through a centralised registration system. That Act requires the creation and maintenance of a register for all retailers of tobacco, cigarette papers and nicotine products. That register has to include detailed information about each registrant, such as their name, residential or business address, and the location of the premises. It also specifies whether the retailer sells tobacco, nicotine products or both. For mobile and temporary premises, such as stalls, tents or vehicles, the register must record the relevant local authorities where the business operates, if there is more than one.

Welsh Ministers may be designated as the authority responsible for overseeing the register, with additional details about registration requirements subject to regulations. To register, businesses must apply to the registration authority and provide comprehensive details about their operations, including the type of products sold and the methods of sale, such as online transactions or delivery services. Applications must comply with a prescribed format and a fee may be required. The authority must grant registration unless legal restrictions, such as restricted premises or sale orders, apply. Approved applications result in updates to the register.

Registered retailers are obligated to notify the authority of significant changes, such as modifications to business details, the cessation of operations at specific locations or the discontinuation of mobile operations in a local authority area. Notifications must be submitted within 28 days and the registration authority is responsible for revising the register to reflect the changes or correct any inaccuracies. Before amending or removing a registrant’s entry, the authority must provide notice to explain the reasons and allow time for the registrant to respond.

The chapter of the Act that is being repealed includes provisions to enhance the regulation of tobacco and nicotine businesses by ensuring access to the retailers register and enforcing compliance. The registration authority is required to publish a list identifying registered businesses and their premises. For businesses operating from moveable structures, such as stalls or vehicles, the list must specify the local authorities where operations occur, instead of physical addresses.

Local authorities are granted full access to information on the register relevant to the premises within their jurisdiction to enable effective monitoring. Certain premises may be exempt from the Act’s provisions, as specified in regulations. The application of the provisions to moveable premises may be modified if deemed necessary by Welsh Ministers.

Conducting a tobacco or nicotine business without registration is an offence, as is operating at locations not listed in the register. Exceptions apply to moveable premises, but failing to notify the authority of a change in business operations without reasonable cause also constitutes an offence. Offenders face fines proportional to the severity of the breach.

To enforce compliance, local authorities may appoint authorised officers and grant them powers to investigate potential offences. Officers may enter premises at reasonable times, provided that they suspect violations and need access for verification. Entry into dwellings for such a purpose requires a warrant issued by a justice of the peace, which remains valid for 28 days. Warrants may also be granted for other premises under specific conditions, such as denial of access or risk of compromising an investigation.

Authorised officers have extensive inspection powers, including examining premises, taking samples and copying documents. They may also secure properties for analysis where necessary. Obstructing officers or failing to co-operate with a reasonable requirement is an offence. Fixed-penalty notices can be issued for minor breaches, offering offenders an opportunity to avoid prosecution through prompt payment. Those measures, in the chapter of the Act that is being repealed, collectively aim to uphold public health standards and ensure the responsible sale of tobacco and nicotine products.

[Gregory Stafford]

That is very helpful.

[Dr Johnson]

Given that is what the Act does, it will be important for the Minister to consider the timing of the repeal. There are comprehensive powers under those provisions, and it will be important to ensure that Welsh Ministers are given ample opportunity and time to put in place new provisions to replace them, before the measures in this Bill come into force.

Could the Minister explain when the changeover date is, and whether he has spoken to Welsh Ministers to ensure that there is adequate time for those provisions to be put in place? He might also respond to the question of my hon. Friend the Member for Farnham and Bordon about whether there is any restriction on replacing any aspects of the current Welsh legislation with the new legislation that we are discussing.

Clause 85 prohibits retail sales of tobacco products without a licence in Northern Ireland. To apply the measures that we have previously discussed to Northern Ireland, it inserts new measures after section 4 of the Tobacco Retailers Act (Northern Ireland) 2014 that will prohibit the sale of tobacco and nicotine-related products without a licence. That brings Northern Ireland legislation in line with the proposed UK legislation that we have just been discussing.

Proposed new section 4A of the 2014 Act introduces a clear prohibition on the retail sale of tobacco and nicotine-related products without appropriate licences. Under this section, individuals are not permitted to engage in the sale, exposure for sale or possession of relevant products unless they hold a personal licence. That licence is required for anyone involved in retail activities such as selling, displaying or possessing tobacco, vaping products, herbal smoking products or nicotine products. The personal licence must be granted by the licensing authority and the individual must comply with the conditions outlined in the licence.

The use of premises for activities such as storing relevant products, exposing them for sale or supplying them to customers is prohibited unless a premises licence is obtained. That ensures that the location used for the sale of these products is also licensed and adheres to the prescribed standards. The premises licence is granted by the licensing authority and outlines the specific conditions under which the premises can operate.

There is provision for regulations to create exceptions to those prohibitions in certain circumstances. The Department responsible for legislation is required to consult relevant stakeholders before making regulations relating to the granting of personal premises licences, which is of course sensible. Those regulations would ensure that the licensing system remains flexible and adaptable to the needs of businesses and public health objectives.

Proposed new section 4B of the 2014 Act establishes the penalties for breaching the new licensing requirements. If a business or individual operates without the necessary personal or premises licence, they commit an offence under that section. In line with England and Wales, providing false and misleading information in an application for a licence is also an offence. If someone knowingly submits incorrect information, they can face legal consequences, with a fine on summary conviction of up to level 5 on the standard scale. The section aims to ensure the integrity of the licensing process by holding individuals and businesses accountable for providing truthful information.

The court has the power to order the forfeiture and destruction of relevant products involved in an offence and of any containers used to store them. That gives the court authority to remove illegal products from circulation and deal with them in a manner it deems appropriate, thereby enforcing compliance with the new regulations.

Proposed new section 4C of the 2014 Act allows local councils to impose financial penalties on individuals or businesses that breach conditions attached to the personal or premises licences. Those breaches must not constitute a criminal offence under proposed new section 4B, which provides for an offence for lying. If a breach occurs, the council can impose a penalty, with the amount of the fine not exceeding £2,500. That serves as an alternative to criminal prosecution for more minor violations, allowing for a more flexible approach to enforcement. The section also allows for adjustments to the penalty amount to reflect inflation, ensuring that fines remain relevant over time.

Schedule 2 to the 2014 Act provides further details on the implementation of those financial penalties and outlines how the penalties will be enforced and collected. That mechanism enables councils to take swift action against minor breaches without resorting to criminal prosecution. Schedule 11 on the retail licensing scheme in Northern Ireland specifies the procedures for granting personal licences, including who may apply and the conditions that must be met for approval.

Schedule 12 provides for the financial penalties for breach of retail licence conditions in Northern Ireland. It outlines the process for granting premises licences, with particular attention paid to ensuring that premises used for sale and storage of tobacco products meet the necessary standards for health, safety and law compliance. Any proceeds received from financial penalties in Northern Ireland must be used by the council for the purpose of its functions under the Tobacco Retailers Act (Northern Ireland) 2014 or for other functions that the Department of Health in Northern Ireland may specify by regulation. That is a little different from the rest of the United Kingdom.

Schedule 13 sets out consequential amendments to the existing legislation to support the introduction of a new licensing framework. I will not go through those in detail.

--- Later in debate ---

[Gregory Stafford]

My hon. Friend is making an interesting point. What does she think about the idea of having a single licence? If a shop—for example, a small convenience store—is selling alcohol, tobacco, where it is still permitted under the regulation, and vapes for those over 18, would a single regulatory process and licensing scheme be more efficient and more beneficial both to the customer and the retailer?

[Sarah Bool]

My hon. Friend makes a valid point. We do not want the introduction of this legislation to lead to any overburdening. We do not want the smaller convenience stores that are trying to operate to be challenged and put out of business. We want this to be a very practical measure so I agree that would be something to look into. I wonder whether the Minister might offer any further thoughts on that.

--- Later in debate ---

[Andrew Gwynne]

Where we know an area is moving from a two-tier to a unitary authority, the clue is in the name: the unitary authority will be the licensing authority because there will be only one local authority covering that area.

[Gregory Stafford]

I am sure the Minister has much greater understanding of his own Government’s policy, but my understanding is that there will be some devolution of powers to parish and town councils. Will they potentially become the licensing authority when there is a downward devolution of power?

[Andrew Gwynne]

No. The local authority, not the parish council, would be and will remain the licensing authority, as is the case at the present time. Notwithstanding that there may be a quasi-additional tier in the form of a mayor and a combined authority, where areas move from a two-tier to a unitary authority, it will be the local authority that is the licensing authority. That is what happens in my constituency in Greater Manchester, where we have effectively had unitary authorities since the metropolitan county council was abolished in 1986. Tameside metropolitan borough council and Manchester city council are both unitary authorities. They are both the licensing authorities for their respective parts of my constituency, even though we have a Greater Manchester combined authority and a Great Manchester metro mayor. I hope that clarifies the issue.

Schedule 1 also establishes that regulations may make provisions regarding the granting, duration, renewal and revocation of licences, and enables the licensing authority to charge a fee for the granting of a licence. In response to the point raised by the hon. Member for Windsor, the fee structure may be set at a level that takes into account administration and enforcement costs. The local authority will be able to use the fee to help cover the cost of granting licences and enforcing the scheme. That is the closest I can get: we intend it to be cost-neutral for the purpose of operating the scheme.

Schedule 1 establishes that regulations can place conditions on the licence. Retailers that breach those conditions will be subject to civil financial penalties. Regulations may make provision for licensing authorities to publish information about licences, such as the addresses of licensed retailers, and, to maintain fairness, regulations must include an appeals route, so that retailers can, for example, appeal decisions on the granting of a licence. Finally, regulations may require that a licensing authority must consider guidance published by the Secretary of State to support the smooth implementation of the scheme.

Clause 19 and schedule 3 establish the same power to introduce a licensing scheme in Wales, with the same framework for the regulations. The schedule establishes the licensing authority in Wales to be the council of the county or county borough. Clause 85 achieves the same in Northern Ireland by inserting a new clause into the Tobacco Retailers Act (Northern Ireland) 2014, while schedule 11 establishes the same framework. In Northern Ireland, a council will be the licensing authority.

Clause 17 creates offences in relation to the licensing scheme in England. It makes it an offence to sell, expose for sale, or possess for the purpose of sale any relevant products without, or not in accordance with, a personal licence. The clause also makes it an offence to use a premises in England for the storage of relevant product for the purpose of retail sale, the exposure for sale, or the supply of any relevant product to a retail customer without, or not in accordance with, a premises licence, and knowingly to provide materially false or misleading information in a licence application.

Anyone found to be committing a licensing offence may be issued with an unlimited fine on conviction. As an alternative to prosecution, trading standards may issue a £2,500 fixed penalty notice, which is an on-the-spot fine. Regulations can confer on courts a discretionary power to suspend or revoke a licence on conviction. The court may order relevant product to be forfeited and destroyed, to prevent a business from continuing to sell or unlawfully selling product.

Clause 20 establishes the same licensing offences in Wales, and clause 85 establishes the same licensing offences in Northern Ireland. In Northern Ireland, district councils will enforce the licensing scheme. People convicted of a licensing offence face a fine of up to £5,000. As an alternative to prosecution, councils in Northern Ireland can issue a fixed penalty notice, the value for which will be determined in regulations.

Clause 18 creates civil financial penalties for breaches of licence conditions in England, to ensure that licensed retailers continue to follow the rules. Breaching conditions is a civil matter, not dealt with by the courts. The value of the civil financial penalty cannot exceed £2,500. The clause also provides a limited and specific power to update that value to account for inflation, to ensure that the value remains relevant. A civil penalty cannot be issued if the breach of the licence condition already constitutes a licensing offence. That is to ensure that someone cannot be subject to double punishment for the same licence breach.