Tag: UK

  • U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.

    “We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.

    Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.

    The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.

  • Analysts: U.K. Vape Tax Good for Tobacco Stocks

    Analysts: U.K. Vape Tax Good for Tobacco Stocks

    Image: Monster Ztudio

    Citi analysts have identified the UK government’s new excise tax on vaping products as an encouraging development for British American Tobacco PLC and Imperial Brands PLC.

    The Chancellor, Jeremy Hunt, confirmed in his Spring Budget speech that vaping products would be subject to a new tax from October 2026. According to media reports, this move is designed to maintain a financial incentive for choosing vaping over smoking, complemented by a concurrent increase in tobacco duty, according to media reports.

    The taxation framework will be based on nicotine content, with a three-tiered system imposing charges ranging from £1-3 per 10ml, in addition to the current 20 percent VAT.

    This structured approach aims to regulate the vaping market further and aligns with the government’s health strategy by providing a less harmful alternative to traditional smoking.

    Citi’s short research note said: “Although [Wednesday’s] confirmation of the planned levy on vaping comes as little surprise, we believe that alongside the proposed ban on disposable vapes from April 25, the regulatory risk/reward is skewing to the upside for both BATS and Imperial.”

  • Critics Claim New U.K. Levy on Vapes is ‘Stupid’

    Critics Claim New U.K. Levy on Vapes is ‘Stupid’

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    Image: vadymstock

    The imposition of a vape levy in the U.K. is “stupid, short-sighted and potentially counterproductive,” according to smokers’ rights group Forest.

    During his budget speech in Parliament on March 6, Finance Minister Jeremy Hunt said he is planning to introduce an extra tax on e-cigarettes from October 2026, aiming to make vaping more expensive and deter nonsmokers from taking it up.

    Currently, most vapes in Britain are subject to value-added tax at the standard 20 percent rate, but there is no extra levy applied. Hunt said the government would also introduce a one-off increase in tobacco duty to maintain the financial incentive to choose vaping over smoking.

    Nonetheless, critics warned that the new vape tax would discourage smokers from transitioning to less harmful nicotine products.

    “If the government is serious about advocating vaping as a substantially less harmful alternative to smoking, a levy on vaping products sends completely the wrong message to consumers,” said Simon Clark, director of Forest.

    “Vaping products are already subject to VAT. Imposing excise duty as well is a stupid, short-sighted and potentially counterproductive measure that could deter many existing smokers from switching to a reduced-risk product that has helped millions of smokers to quit.”

    Maggie Rae, president of the Epidemiology and Public Health Section of the Royal Society of Medicine, said any tax must be carefully considered to ensure it benefits public health.

    “It’s imperative we ensure medicinal use of vapes continues to be encouraged, as smoking cessation remains the matter of greater importance,” she said.

    Clark noted that above-inflation increases in the cost of tobacco disproportionately punish those on lower incomes.

    “Further tax hikes will drive even more smokers to the black market, taking money from legitimate retailers and putting it into the hands of criminal gangs,” he said.

    Jefferies analyst Owen Bennett said the tax could benefit larger players like BAT by making it harder for smaller players to compete.

    “BAT, especially given its highly profitable broader cigarette business, can afford to swallow the tax and not adjust prices,” he told Reuters, whereas it could make smaller firms’ products unviable.

  • Scotland Closer to Banning Disposable Vapes

    Scotland Closer to Banning Disposable Vapes

    The sale and supply of single-use vapes in Scotland could be banned by the start of April 2025.

    It follows a UK-wide consultation last year, with the date agreed by the devolved governments and Westminster.

    The draft legislation – which is open for consultation until March 8 – is being taken forward in Scotland using powers under the Environmental Protection Act 1990, according to media reports.

    The age limit for buying tobacco would also change under UK government plans.

    • Disposable vapes to be banned using devolved powers
    • Disposable vapes to be banned for child health
    • ‘Massive’ increase in young Scots vaping, MSPs told

    Each nation has introduced separate legislation banning the sale and supply of disposable vaping products.

    Circular Economy Minister, Lorna Slater said the Scottish government was committed to reducing vaping among non-smokers and young people and tackling their environmental impact.

  • UK Seized Nearly 10 Tons of Illegal Vapes Last Year

    UK Seized Nearly 10 Tons of Illegal Vapes Last Year

    Credit: Mary

    The number of illegal vapes seized at the border quadrupled last year as UK authorities wrestle with unlicensed imports amid a surge in youth vaping. More than 4.5 million vapes weighing nearly 10 tons were seized over the last 12 months, four times more than in 2022.

    The figures were released to the BBC after a Freedom of Information (FOI) request. The government is soon to announce new rules for the industry, including a possible ban on disposable vapes.

    Figures released to the BBC in response to an FOI request show that Border Force seized just 4,430 vapes in 2021, rising to 988,064 in 2022 and 4,537,689 from Jan. to Oct. 2023.

    Unlike legal vapes, illegal e-cigarettes are not registered with the Medicines and Healthcare Products Regulatory Agency and do not pass through quality control processes, so they may contain harmful chemicals. And retailers prepared to flout product rules may not be scrupulous about observing the ban on selling to under-18s

    A Home Office spokesperson said the government would “not tolerate the sale of illegal products and… harmful goods, such as illegal or counterfeit vapes”.

  • Ban Forces Chill Brands to Pivot From Disposables

    Ban Forces Chill Brands to Pivot From Disposables

    Callum Sommerton, CEO of Chill Brands Group, told media outlets that his company is already pivoting towards a post-disposable product landscape after the UK government announced its plans to ban disposable vaping products.

    Sommerton highlighted the company’s focus on compliance and innovation, emphasizing its development of a fully compliant, reusable pod system, which is being accelerated in response to the proposed regulations.

    Sommerton also raised concerns about the potential unintended consequences of the ban, such as the growth of a black market for disposable vapes and a possible resurgence in tobacco use, in media reports. Citing studies and opinions from health and industry organizations, he argued for regulation over outright prohibition.

    “The government’s ban, or proposed ban, I should say, is frustrating but not entirely surprising. We have prepared ourselves. At this stage, we don’t exactly know what the ban will specifically include or not include,” Sommerton said. “We can take a good guess at that, but this is, at the moment, policy and PR as opposed to draft legislation.

    “So, we will have to wait and see. But that being said, regardless, we are already starting to, if we hadn’t already, pivot ourselves and position ourselves within the market for a post-disposables landscape, which we’re now sort of careering towards.”

    The new rules are expected to provide retailers with a six-month moratorium once any prohibition occurs. Sommerton said there is a clear opportunity to bring to market a product that is compliant, reusable, rechargeable, and contains a degree of novelty.

    “That novelty for us focuses on actually helping people quit nicotine and tobacco rather than just keeping them hooked in a cycle of addiction. We’ll be revealing much more about the products that we intend to place on the market in due course,” he said. “But beyond that, I do think this is a sort of watershed moment for the industry, albeit the government’s measures are likely to have the unintended consequence of supporting a black market in disposable vapes.

    “In the legitimate market, I fully anticipate that we will see certain brands that are perhaps only interested in turning a quick buck and moving on, leaving the market, while those that are interested in longevity, building a business, and building a brand will stay in place.”

  • UK Flavored Vape Ban Likely to Become Law

    UK Flavored Vape Ban Likely to Become Law

    Credit: Mapix

    Proposals to ban disposable vapes and gradually phase out the sale of tobacco to people of all ages in the UK are likely to become law soon. Only a few Conservative MPs have objected to the plans, so they are expected to pass with little opposition.

    Both measures will be voted on in parliament, Downing Street confirmed. While Conservative MPs will be given a non-whipped free vote on the smoking ban, it remains to be decided whether this will also happen for vaping products.

    The ban on disposable vapes, along with action to combat the sale of some child-friendly, fruit-flavored varieties and restrictions on packaging and in-shop displays, would come into force late this year or in early 2025 via a mixture of a bill and secondary legislation, according to media reports.

    The already announced ban on selling tobacco products to anyone born on or after Jan. 1, 2009 will also be introduced as a law, potentially in the same bill as that connected to vaping.

    Although Labour is likely to back both measures, meaning they are guaranteed to pass, Sunak might have expected a significant pushback from libertarian-minded Tory MPs. However, only Liz Truss publicly denounced the plans, calling the date-based tobacco ban “profoundly unconservative” and an extension of the “nanny state.”

  • Number of U.K. Vape Shops Up in 2023: Local Data

    Number of U.K. Vape Shops Up in 2023: Local Data

    The number of vape shops in the United Kingdom increased significantly last year, according to a reports in The Independent citing a survey by the Local Data Co. (LDC).

    The country currently has 3,573 specialist vape shops, 233 more than at the start of 2023. This compares with an increase of 61 shops in 2022 and a decline of 23 in 2020.

    The LCD figures exclude the numerous convenience stores, post office shops and news agents that also stock e-cigarettes and related products.

    Sales of vape products grew by £897.4 million ($1.14 billion) in 2023, according to data published by NIQ and trade The Grocer.

    The fastest growing vape brand in the U.K. was Lost Mary, which saw its sales grow by £310 million over 2022.

    The market for traditional tobacco products contracted in 2023. Sales of cigarettes and loose tobacco declined £849.1 million and £393.1 million, respectively.

    Keen to crack down on youth vaping, the government recently announced a consultation on how to protect children while encouraging adults to use e-cigarettes to quit.

    Its suggestions include restricting flavors and product descriptions that may be appealing to underage consumers, along with rules on how products are presented in stores.

    Jonne Dunne, director general of the U.K. Vaping Industry Association, said the rise in the number of specialist vape shops reflects the growing demand from smokers wanting to quit their cigarette habit.

    “Vapes are proven to be the most effective way for smokers to quit,” he was quoted as saying, adding that e-cigarettes are helping around 50,000 more smokers beat their habit every year.

  • New UK Vaping Tax to be Unveiled in March Budget

    New UK Vaping Tax to be Unveiled in March Budget

    Credit: Lexicon Images

    A new tax will hit vapers in the United Kingdom despite warnings it will punish people who have switched to e-cigarettes after quitting smoking.

    The plans for the levy, which will likely increase the cost of vaping liquid by at least a quarter, will be unveiled in the Budget in March.

    A government source told The Mirror it was now almost inevitable that a tax on vaping will be introduced as part of the Spring Budget, which Chancellor Jeremy Hunt will announce on March 6.

    Ministers are looking to copy European countries such as Germany and Italy that already have levies on vapes.

    A 10ml bottle of e-liquid, which a typical vaper would get through in a week, costs around £4 at present. In Germany, a £1.40 vape tax is slapped on 10ml bottles, with plans to double this to £2.80 in 2026.

    Italy, which in 2014 became the first country to tax e-cigarette fluid, charges a £1.10 levy on 10ml bottles.

  • Vapes Fastest Growing Category in UK Grocery Sales

    Vapes Fastest Growing Category in UK Grocery Sales

    Credit: Suppachok N

    Vaping products were the fastest growing category in U.K. grocery sales for the second year running in 2023, while sales of cigarettes, cigars and loose tobacco fell sharply, industry data showed.

    Britain’s government in October proposed banning younger generations from ever buying cigarettes and Prime Minister Rishi Sunak said it also needed to act on youth vaping, according to Reuters.

    Vaping products saw growth in value sales in Britain of 897.4 million pounds ($1.15 billion) in 2023, according to the data published on Saturday by market researcher NIQ and The Grocer.

    The Lost Mary brand, owned by Chinese vaping firm Heaven Gifts, was the UK’s fastest growing product with sales up by 310.6 million pounds on the previous year, the data showed.

    NIQ said vaping products also saw growth on a volume basis, or the amount people bought, while sales of cigarettes, cigars and loose tobacco were down 849.1 million pounds and 393.1 million pounds, respectively, on a sales value basis.