Tobacco and Vapes Bill

Lord Young of Cookham Excerpts

Committee stage
Thursday 30th October 2025 Grand Committee

[Baroness Northover (LD)]

My Lords, Amendment 12, in my name and that of my noble friend Lady Walmsley, and Amendment 148, in my name, would require the Secretary of State to make regulations obliging tobacco manufacturers and importers to provide sales data by geographical area. Before the Minister says that there is already such a power, let me refer to Amendment 148, which seeks to change “may” to “must” for the requirement to make regulations and to publish data.

Tobacco companies collect rich data tracking the sales of their products which currently exist only to serve commercial purposes. Modelling from Cancer Research UK shows that those living in the most affluent areas of the UK should be smoke free this year, whereas those in the least affluent will not achieve that until after 2050—25 years later. That inequality has devastating consequences. Hence, there are nearly twice as many cancer cases caused by smoking in the poorest areas in England compared to the wealthiest.

Data collected by companies on sales and distributions could be used to inform public health. They could also give insights into different pricing strategies that companies use and would therefore complement a “polluter pays” levy, which I know many people rightly support. The data would also have value in setting up a new licensing system, helping local government understand the pattern of sales in its communities and make judgments about whether availability was appropriate. Trading standards would also benefit, using insights to support enforcement activity and improve the intelligence that local authorities have to assess local problems with any illicit sales and to identify upticks in illicit tobacco use.

Action on Smoking and Health, in its written evidence on the Bill, also flagged the issue of cigarillos, saying that surveys have

“recently identified that cigarillos are increasing in use among young people. With timely access to industry sales data public health agencies and researchers could have identified this trend far more quickly. These products have fewer restrictions on them than other tobacco products, something that will be addressed via the Tobacco and Vapes Bill, but lack of knowledge has inhibited swift public health response”.

Industry data have been shrouded in secrecy—what a surprise. Thank goodness that Professor Sir Richard Doll had the cancer registries to demonstrate the causal link between smoking and cancer. Since public health academics started analysing industry profits, they publish only very limited data. Mandated publication of sales data would ensure that this industry, which sells a product that kills two-thirds of long-term users, is appropriately regulated and monitored given the harms it causes. I look forward to the Minister’s response and I beg to move.

[Lord Young of Cookham (Con)]

My Lords, I agree with Amendment 12 moved by the noble Baroness, Lady Northover, but I want to speak to Amendment 192, which proposes the introduction of a levy on tobacco manufacturers.

When products cause harm, the polluter should pay. That principle was introduced by previous Conservative Governments; the landfill levy was introduced in 1996 and the soft drinks levy in 2018. After the Grenfell tragedy, we introduced the Building Safety Act to make the construction industry pay for the remediation of high-rise blocks. We should apply the same principle to tobacco.

In a report commissioned by the last Government, Javed Khan looked at three options to raise funds to implement his conclusions. He wrote:

“Introduce a ‘polluter pays’ industry levy on profits from cigarette sales, which can directly fund the full range of comprehensive measures to help us reach smokefree 2030 and make smoking obsolete. This is my preferred option … A tobacco ‘polluter pays’ levy could be introduced in the form of a charge applied as a percentage of these profits”.


It would not impact on the CPI or the cost to the consumer, and it would raise hundreds of millions of pounds.

We debated exactly that proposition on 16 March 2022, Amendment 158 to the Health and Care Bill, proposed by the noble Lord, Lord Crisp, whom I am delighted to see in his place. He said about that amendment:

“This new Clause … would require the Secretary of State for Health and Social Care to carry out a consultation about a statutory scheme for the regulation of prices and profits of tobacco manufacturers and importers. Funds raised by the scheme would be used to pay for the cost of tobacco control measures”.—[Official Report, 16/3/22; cols. 287-88.]


That is precisely what Amendment 192 proposes.

Responding to the amendment, the Minister, speaking then from the Opposition Front Bench on behalf of her party, said:

“This strikes me as wholly pragmatic; a wide-ranging consultation would undoubtedly help to strike the right balance between all the parties involved … The scheme proposed in this group of amendments would provide a well-funded and much-needed boost, and a consultation would allow this proposal to be tested, refined and shaped. I hope that the Minister will accept the opportunity of a consultation but if the will of the House is tested, these Benches will support the amendments”.—[Official Report, 16/3/22; col. 297.]


She was as good as her word: she supported the amendment, along with the Leader of her party and the Chief Whip, and the amendment was carried, later to be overturned in another place. I was therefore surprised that the noble Baroness did not add her name to this amendment when I tabled it, and I look forward to her compelling speech in its favour.

Amendment 192 would require the Government to consult on the introduction of a “polluter pays” levy. Tobacco is a uniquely addictive and lethal consumer product, and this creates a perfect storm for consumers. The tobacco industry in this country continues to be in good health, unlike its customers, and companies continue to make significant profits: an estimated £900 million per year in the UK alone, with average profit margins of around 50% compared to 10% for manufacturing margins.

There are various estimated costs to society of smoking. That from ASH is £43.7 billion a year—perhaps the Government could share their own estimate—and it is the taxpayer who picks up the tab: costs to the NHS, costs to social care, lost productivity to our economy, and higher welfare bills. A “polluter pays” levy ensures that those who can and should pay, do, and implementing it would raise up to £700 million a year.

So how would it work? The Treasury consulted on a levy in 2014 and did not proceed, but what is proposed now is quite different and, crucially, it would not allow the industry to pass costs on to the consumer and would have no impact on the RPI.

The levy model proposed by the APPG on Smoking and Health would introduce a price cap on tobacco similar to what we do with utilities. That would limit the prices to manufacturing costs plus, say, a 10% profit margin. This would be in line with other consumer products and more than generous for an industry responsible for such high levels of harm. The Government would then introduce a new levy on the industry, to be paid for from its profits.

A consultation would allow this model to be “tested and shaped”, providing a much-needed boost to public finances. The public too share our support for this proposal, with 76% of adults in England in favour of a “polluter pays” levy.

I note that the amendment from the noble Earl, Lord Russell, on this same subject proposes to put the proceeds into

“a dedicated fund held by the Department of Health and Social Care”.

I have not included such hypothecation in my own amendment, but I fully support what he seeks to do. Some £700 million a year could be used to support 2 million more smokers to quit just in this Parliament and accelerate progress towards a smoke-free future. It is likely that funds would be left over, which could be used for other public health activities, helping the Government achieve their mission of reducing the gap in life expectancy between the richest and the poorest.

This is a measured, fair and practical proposal. It would protect the consumer, prevent industry manipulation, provide much-needed funding for the Treasury, and ensure that those who profit from an addictive and lethal product made a proper contribution to repairing the damage it causes. I look forward to the Minister’s reply.

[Earl Russell (LD)]

My Lords, my Amendment 194, on a tobacco industry levy and new industry obligations, offers a vital and practical mechanism to make the Bill stronger, fairer and more effective in public health and social justice terms. I am sure there is not a Member present whose family has not been impacted by nicotine addiction, and my family is no exception. The Bill presents an important opportunity to redress the balance between corporate profits gained from selling products that by their very nature kill two-thirds of their users and the burdens placed on wider society that are felt by our health and care systems. Other amendments in this group are based on similar ways of addressing these wider problems and I welcome them. These are problems that, if not addressed, will persist long after the Bill is passed.

My amendment would quite simply make those who profit from harm contribute directly towards repairing it. The tobacco industry continues to generate vast profits from the products it sells and it has huge economic and human suffering costs. I acknowledge that accurate statistical data in these areas is complex, but it has been estimated that the four largest tobacco manufacturers made approximately £900 million in profits annually in the UK, according to one 2023 estimate. I well recognise that tobacco duties are a significant source of government revenue, raising an estimated £8.1 billion in 2025-26, which represents 0.7% of all government receipts and is equivalent to 0.3% of national income. However, this revenue goes towards general taxation.

The health impacts of smoking and nicotine are estimated to cost the UK economy billions of pounds annually, with estimates for England alone reaching up to £43.7 billion if the total societal costs are included and some £2.5 billion in direct service costs for the NHS. These figures are significant and productivity loss and health impacts have big societal impacts. My amendment would require the Secretary of State to introduce by regulation a levy on companies’ profits derived from income from the manufacture or sale of tobacco products in the United Kingdom. The levy would apply annually and would be based on profits attributable to tobacco sales here. The funds raised would be paid to a dedicated ring-fenced account held by the Department of Health and Social Care. As has already been mentioned by the noble Lord, every penny collected would be used solely for the purposes of either smoking cessation services, public health campaigns focused on reducing tobacco harm or healthcare services to treat people living with smoking-related diseases.

It is worth stressing what this amendment would not do. It would not set the rate or the structure of the levy. I have left these details entirely for the Government to determine. The measure is not prescriptive; it would simply establish the legislative framework and would allow Ministers to design and introduce a fair and proportionate levy. It would give the Government flexibility to decide, for example, whether the levy should be assessed by company profits, by market share or by a combination of the two approaches. It would equally be left to the Treasury to investigate and decide, with Ministers, the best way to implement it. The principle of the amendment is the important point, and it is clear. The principle is that the tobacco companies, and not the general taxpayer, should contribute directly the greatest proportion of the cost of the harm that their products cause. It would align, as has been said on other amendments today, with the “polluter pays” model, which is endorsed by health experts across the field. The estimate is that £700 million could be generated annually to help transform smoking cessation services and public awareness campaigns, services that have been hit by cuts.

Although the level of smoking is reducing, some 13% of the UK population still smokes. This has significant impacts. For example, Imperial tobacco holds 40% of the UK market; that market is worth £30 billion annually. Meanwhile, on the other side, the NHS and the Treasury have to deal with the societal consequences of what tobacco does.

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

My Lords, I am most grateful for the debate today on this group of amendments, which seek to impose regulatory obligations on the tobacco industry. Although in general I would certainly say that I have sympathy for the aims behind these proposals, I suggest that, for the reasons I will go on to outline, they are not necessary in respect of the Bill.

Amendment 192, tabled by the noble Lord, Lord Young of Cookham, seeks to require the Secretary of State to consult on proposals for regulating the prices and profits of, and to raise funds from, tobacco manufacturers and importers. Similarly, Amendment 194 from the noble Earl, Lord Russell, seeks to require the Secretary of State to introduce regulations to raise funds from tobacco manufacturers and retailers.

The noble Earl, Lord Howe, made the first point that I was intending to make. I feel that in many ways —I know not all noble Lords will share this view—we already have a “polluter pays” tax on tobacco, which comes in the form of tobacco duties, as the noble Earl outlined. Overall, throughout, I am very focused on what impact will be made on improving public health and driving down rates of smoking, as I know we all are. I also appreciate that there are different opinions as to how that might be done. It has been pointed out regularly to the Government that the UK has some of the highest tobacco taxes in the world. Duty rates on all tobacco products were increased by 2% above inflation in the Autumn Budget last year, with an additional increase for hand-rolling tobacco to reduce the gap with cigarettes, and this duty raises about £8 billion a year.

I am aware that the noble Lords, Lord Bourne and Lord Scriven, in addition to other noble Lords, are very supportive of these amendments. I am sure that noble Lords who have quoted me accurately today will probably say I should have looked at this before, but I refer back to, as the previous Government will be aware, a previous consultation in 2014, which showed that going down this road would not raise the significant amounts being referred to when you take into account lost duties.

I have spent quite a lot of time with officials and others going through the detail of all this, not least because of my previous comments. Certainly, having had the chance to review the detailed government advice and all that comes with it, which I now have access to as a Minister, I think that the way to reduce the profits of the tobacco industry is to reduce the use of tobacco—I believe I said that on day one in Committee—and by creating a smoke-free generation. That is not just a prize in itself but will have a great impact, in the way I think noble Lords seek, on the industry. It is unclear to me how an additional levy on tobacco industry profits could be implemented without the costs being passed on to consumers—again, there was some concern about that in this debate—or without regulating prices.

The noble Lord, Lord Young, referred to a price cap on tobacco products. Certainly, my investigation into this shows that regulating pricing would be extremely complicated to design and implement, and difficult to shield from abuse and challenge by the global tobacco industry. Therefore, given that, as I just said, our focus is on implementing our smoke-free generation, our judgment is that the benefits do not outweigh the costs.

Therefore, at this stage, to do the job that I believe most people—not everybody, I know—is focused on, our preference would be to continue with what is a proven, effective and understood model of increasing tobacco duties. This approach provides an incentive to those who currently smoke. It incentivises them to quit, which is what we want to focus on, as well as generating revenue to be put back into a full range of public services, including public health and the National Health Service.

I say to the noble Lord, Lord Crisp, who I know is extremely well aware that I am about to say this, that of course tobacco taxation is a matter for His Majesty’s Treasury, and decisions on taxes are reserved for fiscal events. I would be extremely unwise, in my position, to speculate in advance of a forthcoming Budget.

Moving on to Amendment 12—

[Lord Young of Cookham (Con)]

Houdini would be jealous of the way the Minister ingeniously escaped the trap I set for her earlier, as she tried to reconcile her previous position with what she is now saying. But does she accept that the amendment does not at all ask the Government to introduce a levy? It says:

“The Secretary of State must consult and report on the desirability”.


That would enable the Government, and indeed others, to look at some of the issues that the Minister has raised. The 2014 exercise she referred to consulted on a totally different levy, which would have been passed on to the consumer. The difference between the “polluter pays” principle as we propose it and the one that she proposes is that in the case we prefer, it would be the tobacco manufacturers that would pay, whereas relying on the duty, as the Minister seems to, means that the consumer pays.

[Baroness Merron (Lab)]

I agree that Amendment 192, tabled by the noble Lord, would require the Government to consult on introducing a tobacco industry levy, but, as a former Minister himself, he will be aware of the use of consultation. It remains the case that we believe that the most effective model of dealing with tobacco products is through increases in tobacco duty, so it would not be logical to accept an amendment that requires a consultation on something the Government do not wish to pursue. Amendment 194, in the name of the noble Earl, Lord Russell, would require the Government to make regulations to introduce a tobacco industry levy.

Amendment 12, tabled by the noble Baroness, Lady Northover, would require the Secretary of State to lay regulations requiring tobacco manufacturers and importers to publish quarterly data relating to the sale of tobacco products across England and Wales. Similarly, Amendment 148, also tabled by the noble Baroness, Lady Northover, would require regulations made under Clause 95 to require the provision of certain information, including sales data from producers or importers of relevant products. The noble Baroness, Lady Walmsley, also spoke in support of these amendments.

This is perhaps an opportunity to refer back to the words of the noble Baroness, Lady Fox. I heard her concerns about what I said on day one. This is not a question of labelling an industry in any way, but we take very seriously our obligations as a party to the World Health Organization Framework Convention on Tobacco Control. I and the Government are very sympathetic to attempts to increase and improve the transparency of the tobacco industry.

I certainly agree with the observations of the noble Baroness, Lady Northover. We know that deprived areas are more likely to have lower life expectancy and higher smoking rates. That is why we particularly need to press forward with this legislation. It is also why we routinely and proactively publish correspondence received from and sent to the tobacco industry, and have produced guidance for the Government on engagement with the tobacco industry, which protects health policy from the commercial and vested interests of the tobacco industry and encourages transparency in all interactions.

--- Later in debate ---

[Baroness Northover (LD)]

My Lords, I will speak to my Amendment 28, which concerns free samples of tobacco and vaping products. I thank my noble friend Lady Walmsley for adding her support.

Although I understand that Clause 15 will take action on this issue, it is such an important matter and such a significant gap in current regulation that I wish to address it directly with my amendment. The promotion of tobacco and vaping products through the distribution of free samples is wholly unacceptable. The Tobacco Advertising and Promotion Act 2002, with which I was involved, explicitly banned that practice for tobacco. It is exactly what I saw in Africa when I was a DfID Minister, with primary age children given cigarettes as the tobacco industry saw its market decline in the West and sought to addict children in other parts of the world. If vapes were really only used for smoking cessation, why would they be so clearly targeted at children, as we have heard?

Since vapes have come on to the market, there have been multiple reports of such products being handed out to young people to get them addicted to nicotine. It is the route that my nephew, to whom I referred on Monday, and his friends, who are now unable to kick the smoking habit, arrived at cigarette smoking—via colourful vapes. It would be useful to publish the sales data, and we will see whether we have some useful data on potential upticks among children smoking as a result of vapes.

Public health campaigners have long called for the closing of the loophole that allows vapes to be given to children as part of a promotional activity. As far back as 2010, the Guardian reported that a 17 year-old had been given a free sample of BAT’s vape brand, without being told that it contained nicotine or being asked for age verification. Such promotions are often carried out by third-party marketeers at festivals, train stations and in city centres, with young, vibrant staff enticing people with their free products—but with limited explanation of the risks. Trading standards can do nothing about this, as vapes are not currently covered by existing restrictions.

My amendment came as a result of sitting on the Tube on 7 May this year and looking up and seeing the advert for Zyn that I am holding up. I know we are not supposed to use props, but this makes the point. Zyn, it says, is a “flavour you feel”. “No smoke, no vapour, no tobacco” is what that advert says in large type. Sounds benign, does it not? However, there is an asterisk to very small print that says it is derived from tobacco. Then there are the flavours: chilli guava, icy blackcurrant, citrus, black cherry, cool mint. Then it says, “Claim your free sample today”, with a double asterisk to another tiny warning and a minute warning underneath saying that it is not risk free—an understatement—that it contains nicotine, which is addictive, and that it should only be used by adults who would otherwise continue to smoke or use nicotine. Oh yes, just look at this advert. Do they put those warnings in bold colours and letters? Oh no, they do not. So do not tell me that this is not targeted at young people.

I was so angry to see that and that is why my amendment came forward. How can anyone justify seeking to draw children and young people in with an advert like that and sleep soundly at night? It is welcome that this Bill will finally address this issue, but it has taken an unacceptably long time to reach this point. The industry is, as ever, using all sorts of arguments to water this down, and we should not buy that. Young people who have never smoked should not be using vapes, as my noble friend Lord Russell has just said. Yet, 20% of 11 to 17 year-olds have tried vaping and 160,000 children at least vape daily.

I would be grateful if the Minister would confirm the following. First, will the Bill be robust enough to capture any future innovations the industry might devise? We have seen time and again how the tobacco industry exploits loopholes and adapts products to evade regulation. It is essential this practice of giving out free samples to hook young people on to addictive products ends with this Bill. Secondly, could the Minister comment on the timeframe and the reasoning behind it? I note that no further regulations are required but that the measure will come into force six months after Royal Assent. Is there any possibility that we could bring this forward? We have already waited five years for this change. I share the concern of the noble Lord, Lord Kamall, about time slipping on this. This is one of the most insidious forms of marketing, and we should crack down on it as swiftly as possible.

[Lord Young of Cookham (Con)]

My Lords, I will speak very briefly to this group of amendments. Amendment 16 is about age. My noble friend Lord Moylan said that young people are sensible. I agree with that. I think it follows from that that they are sensible enough to understand that Parliament may have prescribed different age limits for different activities, so I do not find that argument wholly conclusive but, on a more conciliatory note, I agree with what my noble friend said about Clause 12.

“A person commits an offence if the person has the management or control of premises on which a vape vending machine … is available for use”.


However, there is no provision for any exceptions.

My noble friend made a case for those mental health hospitals that have vending machines that enable patients to remain smoke free. Is it the case that, when the Bill becomes an Act, they will have to take those vape machines out and go through the whole process of licensing to be able continue to sell vaping products? Is it the case that, under Clause 16(3)

“The Secretary of State may by regulations create exceptions to the prohibition in subsection (1) or (2)”.


Is that the “get out of jail” card we need to solve the problem my noble friend rightly drew attention to?

My noble friend also touched on Amendment 17A, which relates to vaping machines in non-age-gated premises. The explanatory statement says that the amendment

“would permit the sale of vapes and other nicotine products through vending machines in only those premises that are already restricted to adults only”.

I wonder what those premises are, because younger people can go into pubs and clubs. What are these age-gated premises? I can think of nightclubs and the Chambers of the House of Lords and the House of Commons, but it would be helpful to hear in slightly more detail exactly what these exemptions might be.

I am cautious about any exemptions, because I see vaping products as a smoking-cessation tool. Allowing vaping products to be made available in pubs, clubs, restaurants, or wherever, tends more towards the recreational use of vaping, which I think we all want to downplay. I give way to the noble Baroness, who will explain what these age-gated premises are.

[Baroness Fox of Buckley (Non-Afl)]

The point of vape vending machines in a lot of nightclubs and late-night premises—of which I hear tales and know nothing—is that, when people are out and about, very often they recreationally smoke. That is how a lot of young people start smoking: they have a cigarette with a drink. The idea therefore is that people should at least have the option of vaping. Young people are actually lobbying for this. I know how keen everyone is on giving young people what they want. That is the deal.

[Lord Young of Cookham (Con)]

The noble Baroness destroys her own argument by saying that nightclubs are premises where young people go for recreation and then saying that they might use the vaping machines and start vaping. The last thing we want is for young people, who do not want to smoke, to start vaping because they are in a recreational atmosphere where other people are vaping and there is an opportunity for them to join in. I repeat the point that I see vaping as a smoking-cessation tool, not a recreational exercise.

Finally, while I am normally on the same page as the noble Earl, Lord Russell, on this, I find his argument—that we need to fix a price that is so high that it is out of the reach of young people with pocket money, but so low that we do not penalise those in poor communities where smoking is prevalent—to be an impossible circle to square. He indicated some flexibility, but flexibility does not solve the problem, because the easier we make it for the smoking communities to start vaping, the easier it is for young people. I am not sure that price control is an area that is going to solve the problem, but I accept the environmental consequences that he spoke so fluently about.

[Baroness Walmsley (LD)]

My Lords, I will speak first to the amendments from my noble friends. My noble friend Lord Russell and I laid Amendment 21 to probe the issue of the affordability of vapes for young people. Currently, the evidence of the number of young people below the legal age of 18 accessing vapes indicates that they are currently affordable. Not all young people are getting them on the black market, because about half of them state in surveys that they get them from a shop. This certainly raises the question of why retailers are selling vapes to young people without proof of age.

It also raises the role of price. Minimum pricing is a mechanism that has been used for public health reasons to increase the price of alcohol and decrease the amount that people buy. Why do we not take the same approach for vapes? Besides, as I understand it, if the price of vapes is seen as a barrier to quitting, a patient can have them prescribed to them by a doctor. Is that true? Perhaps the Minister will clarify that later.

We want to use this Bill to protect the use of vapes as an effective tool for quitting smoking. I say to the noble Lord, Lord Moylan, that I do not think there is any contradiction between that and wanting to protect young people from taking up vaping, especially as it sometimes leads to smoking tobacco as well.

We are aware that a vape liquid excise duty will come in next October, which will increase the price of vapes. A smoker who wants to use vapes as a quitting tool will not be deterred from buying vapes if they continue to be cheaper than cigarettes because clearly they can afford cigarettes, so of course they can also afford vapes. Can the Minister reassure us that the concurrent increase in the tax on tobacco will maintain that gap and keep tobacco more expensive than vapes? Do the Government have any granular research on the effect of the price of these products as a deterrent?