Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will take steps to reduce the number of illegal tobacco and vaping products on sale in North Shropshire.

The Government is committed to reducing the number of illicit tobacco and vaping products on sale nationally.

For tobacco, HM Revenue and Customs (HMRC) has a robust strategy to tackle the illicit tobacco trade. HMRC works closely with Trading Standards to disrupt the illicit tobacco trade at retail level – known as Operation CeCe. In its first three years, more than 46 million illegal cigarettes and 12,600kg of hand-rolling tobacco were seized.

In July 2023, HM Revenue and Customs introduced a strengthened sanctions regime for breaches of the UK Tobacco Track and Trace System to combat illicit tobacco sales. New powers were also given to Trading Standards to make referrals to HMRC where they find evidence of high street retailers selling tobacco products that do not comply with the UK Tobacco Track and Trace System.

In January 2024, HMRC and Border Force published their latest illicit tobacco strategy, ‘Stubbing Out the Problem’. This sets out the Governments’ continued commitment to restrict the trade in illicit tobacco with a focus on reducing demand, and to tackle and disrupt organised crime groups. This strategy is supported by £100 million of new smokefree funding allocated over 5 years to boost existing HMRC and Border Force enforcement capability.

As with tobacco, there is a cross-government approach to reducing the number of illegal vapes. The vaping equivalent of Operation CeCe, Operation Joseph, led to the seizure of over 1 million illegal vapes in 2023-24, the last full year for which statistics are available.

HMRC are also working closely with both Trading Standards and Border Force to develop a robust compliance approach for the introduction of Vaping Products Duty (VPD) on 1 October 2026.

VPD is a new excise duty on vaping products, which will introduce additional compliance powers and controls across the vaping supply chain. This includes the introduction of a Vaping Duty Stamps (VDS) scheme, which will require highly secure stamps to be placed on all duty paid goods, supporting enforcement agencies and customers to identify illegal products.

HMRC are recruiting over 300 staff to strengthen this compliance approach and deliver VPD.