Question to the Department of Health and Social Care:

To ask His Majesty's Government, further to the remarks by Lord Markham on 25 January (HL Deb col 845) when he stated that a levy on the profits of the tobacco industry would result in a net increase of "only about £25 million or so", what is the basis for that assertion.

In the United Kingdom, smoking is responsible for approximately 80,000 deaths a year and causes approximately one in four cancer deaths. It also costs the UK £17 billion a year and puts a huge burden on the National Health Service. This is why, alongside our plans to create a smokefree generation, we are also supporting more smokers to quit by nearly doubling funding to local stop smoking services.

In respect to the remarks made on 25 January 2024, these relate to a response to the Tobacco levy consultation published by HM Treasury in 2015. This cites HM Revenue and Customs analysis which, at the time, showed that a tobacco levy of £150 million would only raise £25 million. A copy of the Tobacco levy consultation is attached.

However, the Department continues to work with HM Treasury regarding tobacco taxation and revenue. This includes reviewing options for the most effective way to raise additional funds to further support smoking cessation services moving forward.