Money from proposed levy on tobacco industry sales must be spent on tobacco control measures

Tobacco Levy: Spend the Money on Public Health

Money from a proposed new levy on the tobacco industry sales must be spent on reducing the harm that smoking causes, an all Party group of MPs and Peers says today. The Chair of the All Party Group on Smoking and Health, Paul Burstow MP (Sutton and Cheam: Liberal Democrat) is to introduce a “Tobacco Manufacturers (Producer Responsibility) Bill” on Monday 23^rd March, under the Ten Minute Rule. The Bill will mark the start of a cross-Party campaign on how to use money from a levy on the tobacco industry.

A consultation on a tobacco levy was announced by Chancellor George Osborne in the 2014 Autumn Statement, and may be included in the Budget on Wednesday 18^th March. The Labour Opposition has also announced that it would introduce a levy. But neither the Government nor Opposition has yet promised to spend the money on paying for tobacco control measures around the country, although they are highly cost effective and essential if the NHS is to achieve its aim of closing a forecast £30 billion funding gap through public health and prevention action.

The levy should be based on sales data, which the tobacco industry would be required to publish at local, regional and national level. If any of the levy is passed on to consumers in the form of higher prices, this will have some public health benefits, since price increases are known to be the single most effective policy lever in reducing smoking prevalence. However, the benefits to public health will only be fully realised if the proceeds of the levy are used to fund tobacco control action to increase quit rates beyond what might be expected as a result of price rises.

Paul Burstow MP said:

Our independent economic advice is that at least £500 million could be easily raised through a levy on tobacco industry sales. That would more than pay for a programme of tobacco control measures at local, regional and national level. It would relieve the financial burden on local authorities of providing vital Stop Smoking Services. It would contribute greatly to achieving the NHS’ public health ambitions and help close what threatens to be an unsustainable funding gap. I’m delighted my Bill has cross-Party support and I hope the Treasury will take careful note of what we are saying.

Bob Blackman MP (Harrow East: Conservative, Secretary of the APPG) said:

Smoking is still the number one cause of preventable deaths, and for every death there are at least twenty people with smoking related disease. The tobacco industry should certainly be paying more to help clean up the damage their products are causing. A levy on their sales is overdue – but it must be used to ensure that tobacco control measures are funded across the country.

Kevin Barron MP (Rotherham: Labour, Vice Chair of the APPG) added:

The tobacco industry is one of the most profitable in the world – the top two companies in Britain make about a billion pounds in profit every year. They can certainly afford to pay more to clear up the devastating damage their products cause. I can’t think of a more obvious example of the principle that the polluter should be made to pay.