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Vapes hit with new tax in Budget as part of Jeremy Hunt’s crackdown on smoking
Jeremy Hunt has announced a new tax on vapes as the government moved to crack down on smoking in the spring Budget.
The chancellor introduced a levy on the smoking alternatives in a bid to make them unaffordable for children. He said the move would take effect from October 2026.
It comes after the government in November last year made plans for a “smoke-free” generation by banning tobacco products for children turning 14 or younger.
According to pre-Budget reports, the tax would apply to the liquid in vapes, with an additional higher tax for any products that contained more nicotine.
Under current rules, vapes are subject to 20 per cent VAT but not a specific tax like normal cigarettes are.
Officials fear that the relatively cheap cost of vaping means that the products are more accessible for young people as well as non-smokers.
The government first said it was considering a vaping levy at November’s King’s Speech, citing a "significant differential" with tax on tobacco.
Mr Hunt also announced a one-off increase in tobacco duty.
Taxes on cigarettes and other tobacco products will rise despite having been hiked twice in 2023, meaning they will become more expensive.
After last years’ second rise in tobacco duty, the average price of a packet of 20 cigarettes grew to £14.39 – up by £1.55. It is expected that the new rate will see that average grow to £16, a further increase of £1.61.
Downing Street said it expected the plan to result in up to 1.7 million fewer people smoking by 2075.
Source: The Independent, 6 March 2024
See also: ASH - Comment on Budget decisions on tobacco and vaping
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Young people in the UK: tell us about your (non-cigarette) smoking habits
A recent study has found a fivefold increase in the number of people who only smoke non-cigarette tobacco over the past 10 years. The number has risen from 151,200 in 2013 to 772,800 in 2023, according to research published in the journal Nicotine and Tobacco Research.
The study found the greatest increase in the use of non-cigarette tobacco was among young adults, with 3% of 18-year-olds using these products, compared with 1.1% of 65-year-olds.
We’re interested to hear from young people over 18 as to why you decided to smoke non-cigarette tobacco.
Source: The Guardian, 6 March 2024
See also: Nicotine & Tobacco Research - Trends in Exclusive Non-Cigarette Tobacco Smoking in England: A Population Survey 2013–2023
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Alcohol duty freeze extended by Jeremy Hunt in Budget victory for thousands of struggling pubs
Jeremy Hunt announced a freeze on alcohol duty in his spring Budget in a win for pubs and drinkers struggling with the cost of living squeeze.
The chancellor said he was extending the freeze, benefitting 38,000 pubs across the UK, for a further year after keeping the duty unchanged in his Autumn Statement.
Traditionally, alcohol duty rates rise annually in line with inflation but chancellors have, over the past decade, opted to freeze it.
Mr Hunt told the Commons on Wednesday: “In the Autumn Statement I froze alcohol duty until August of this year. Without any action today, it would have been due to rise by 3 per cent.”
However, health campaigners condemned the “appalling” decision at a time of “record high” alcohol-related deaths.
Professor Sir Ian Gilmore, chairman of the Alcohol Health Alliance UK, said: “Increasing alcohol duty is one of the most effective ways to increase Treasury revenue, reduce alcohol harm and protect the NHS.
“It is appalling that once again the chancellor has passed on the opportunity to boost government spending and improve public health, in favour of a tax break for the multibillion-pound alcohol industry.
“At a time when we are experiencing record-high alcohol deaths and public finances are under extreme pressure, increasing duty is fundamental in reducing the burden caused by alcohol.
“The tax cut afforded to the alcohol industry today is the result of lobbying from powerful multinational corporations. It further highlights the need for an automatic duty escalator to be reinstated to protect the decision from the influence of industry each year.”
Source: The Independent, 6 March 2024
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What’s behind the rapid rise of cancer in the under-50s? – podcast
Ian Sample, Science Editor of the Guardian, speaks to the Guardian’s health editor, Andrew Gregory, about the worrying global rise in cancers in under-50s, and hears from Yin Cao, an associate professor in surgery and medicine at Washington University in St Louis, who is part of a team conducting a huge study into why young people are developing bowel cancer at record rates. Discussing how the situation could be improved, Andrew Gregory says there needs more focus on public health measures and people should aim to stop smoking, cut down on alcohol consumption and maintain a health weight.
Source: The Guardian, 7 March 2024
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ASH Daily News is a digest of published news on smoking-related topics. ASH is not responsible for the content of external websites. ASH does not necessarily endorse the material contained in this bulletin.
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