Tobacco and Vapes Bill (Eighth sitting)

Liz Jarvis Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Dr Johnson]

On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 37 ordered to stand part of the Bill.

Clause 38

Fixed penalties: use of proceeds

[Liz Jarvis (Eastleigh) (LD)]

I beg to move amendment 2, in clause 38, page 20, line 18, leave out from “must” to the end of line 19 and insert—

“be allocated by the relevant Local Health and Wellbeing Board to public health projects.”.

This amendment would direct funds from Fixed Penalty Notice fines to public health initiatives, determined by Local Health and Wellbeing Boards.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 3, in clause 38, page 20, line 20, leave out from “before” to the second “the” and insert—

“such sums are allocated by the relevant Local Health and Wellbeing Board”.

This amendment is consequential upon Amendment 2.

Clause stand part.

[Liz Jarvis]

It is a pleasure to serve under your chairship, Mr Dowd, and to speak to these amendments.

The UK should be one of the healthiest countries in the world, with our long history of grassroots sports, high-quality food production and world-leading medical research. However, under the previous Government the UK only became sicker, and now lags far behind its international peers. That is why the Liberal Democrats want to see the new Government take urgent action to support people to live healthier lives. The previous Government squandered numerous opportunities to make the UK a healthier place to live and failed to take easy steps to improve the nation’s health. The Liberal Democrats have welcomed the new Government’s early steps to tackle ill health. We believe that supporting people to lead healthier lives should be a priority for the Government.

[Gregory Stafford]

As all Liberal Democrats do whenever they stand up, the hon. Lady has just castigated the previous Government for everything they did. Did she not welcome the fact that the previous Conservative Administration brought in a Bill very similar to this one to improve the nation’s health? Is there nothing she can find to praise the previous Government for?

[The Chair]

Order. I ask that we stick to the amendment.

[Liz Jarvis]

That brings me to amendments 2 and 3 to clause 38. As the Bill stands, fines collected for breaches of licensing regulations are directed to the relevant Consolidated Fund after deducting administrative costs. We believe that this misses an opportunity to create tangible benefits by empowering local health and wellbeing boards to increase the health and wellbeing of their local populations. Amendments 2 and 3 propose a constructive change: those fines should be redirected to support public health initiatives, to be determined by local health and wellbeing boards.

Local health and wellbeing boards bring together leaders from across the care and health system to improve the health and wellbeing of their local populations. They are well placed to identify and prioritise local public health challenges. Keeping money from the fines in the community would empower local health and wellbeing boards to determine public health initiatives tailored to their communities’ needs. Our amendments are centred on the need for community-led solutions to public health concerns.

--- Later in debate ---

[Liz Jarvis]

I do not know the answer to that, so I will refer that question to the Minister.

[Sadik Al-Hassan]

They are your amendments.

[Liz Jarvis]

I am sorry; I do not know about that.

Our amendments would also promote transparency and accountability by giving those with skin in the game a direct role in deciding how fines are used to address public health priorities in their area. They would strengthen the Bill’s public health focus while retaining the integrity of its enforcement mechanisms.

[Mr Barros-Curtis]

Will the hon. Lady give way?

[Liz Jarvis]

I have one sentence left.

The amendments would ensure that the penalties imposed for regulatory breaches contribute directly to mitigating the broader harms caused by tobacco and vaping.

[Dr Johnson]

My understanding—the Minister may correct me if I am wrong—is that the money from FPNs would go into the relevant Consolidated Fund once the enforcement costs of investigating an issue in the FPN have been deducted by the local weights and measures authority. Were these amendments to come into force, the Government would need to provide the extra money to ensure that the enforcement agencies can still function, because at the moment some of their money is recycled from the FPNs, and that would not be the case.

I understand the hon. Lady’s desire to ensure that the money that comes from FPNs for the sale of tobacco and other relevant products to under-age individuals is used to improve public health, but in practice if the money goes into the Consolidated Fund, the Government can use it for whatever purposes they deem useful for public health. There is therefore nothing to stop them using it entirely for public health, and for this House to decide what it should be spent on, because that is how the Consolidated Fund is spent. In my view, having a separate fund administering the FPNs would add an extra layer of bureaucracy, so I do not support the amendments, although I support the principle behind them of trying to ensure that public health is good, because all parties want that.

--- Later in debate ---

[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.