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Tobacco companies respond to the budget
Spokespeople from tobacco companies Japan Tobacco International (JTI) and Philip Morris have criticised government’s latest budget, claiming that tax changes will worsen the illicit cigarette trade. The managing director of JTI welcomed further enforcement action but is calling on the government to reverse the ‘double taxation’ on tobacco products, claiming it will worsen the illicit trade. The illicit prevention manager at Philip Morris claimed that the illicit trade had been ‘neglected’ in the Budget.
Source: Talking Retail, 27 November 2025
Editorial note: This article has been included to provide insight into market trends and industry developments. Tobacco taxes are considered the single most effective way to reduce smoking rates according to the World Bank and WHO. In the UK, tobacco taxes – combined with a comprehensive anti-smuggling strategy – have been highly effective at reducing both smoking prevalence and the illicit trade in tobacco. HMRC estimates of the UK illicit tobacco market show that the number of illicit cigarettes consumed has fallen by almost 90% since 2000 – alongside a 68% decline in illicit hand-rolling tobacco (HRT).
The latest 5-year UK illicit tobacco strategy was published in 2024 and is supported by over £100 million in funding. Retail-level enforcement activity is delivered through Operation CeCe, a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021. This has since been supplemented by an additional £10 million for illicit tobacco and vapes enforcement led by Trading Standards.
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Retailers call on government to back age-verification technology for vape devices
A group of independent shop owners have written to ministers urging them to amend the Tobacco and Vapes Bill so that vape devices can incorporate built-in age-verification. They argue that requiring users to prove they are adults before a device will function would curb underage vaping.
Source: Better Retailing, 27 November 2025
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Gambling groups claim Budget tax rises will shrink profits and boost illicit-market operators
The owner of Betfair and Paddy Power has claimed that the Chancellor’s increases in gambling duties will reduce earnings and make unlicensed operators more attractive to customers. Other industry leaders argue the measures threaten investment and will push smaller firms out of the UK market. Flutter Entertainment, an online betting firm, says it will mitigate some of the impact by cutting spending in marketing.
Source: The Telegraph, 27 November 2025
Editorial note: This article has been included to provide insight into market trends and industry developments. Media stories covering prevention of ill-health are being included in ASH Daily News because policy change in these areas is indicative of the Government’s position on prevention and their attitudes to harm-causing industries.
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French reminded of public smoking ban at ski resorts as winter season begins
France is reminding winter holidaymakers that smoking is now prohibited across most areas of ski resorts, following a decree introduced earlier in the year to curb exposure to tobacco in public spaces. The rules apply to chairlifts, slopes and queueing areas, although vaping remains permitted. Resorts have begun reopening for the season and are preparing information campaigns to ensure visitors are aware of the changes, with some creating designated smoking zones. The measure is also expected to reduce litter, after tens of thousands of cigarette ends were collected on the mountains last year.
Source: The Connexion, 26 November 2025
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Written answers
Asked by Lee Anderson, Reform UK, Ashfield
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of penalties for people engaged in the illegal trade of tobacco products.
Answered by Dan Tomlinson, Exchequer Secretary to the Treasury, Labour, Chipping Barnet
HM Revenue & Customs (HMRC) has a robust strategy to tackle the illicit tobacco trade which can be found here https://www.gov.uk/government/publications/stubbing-out-the-problem-a-new-strategy-to-tackle-illicit-tobacco/stubbing-out-the-problem-a-new-strategy-to-tackle-illicit-tobacco(opens in a new tab)
This strategy combines legislation, controls, operations and sanctions to penalise and deter those involved in the illegal trade of tobacco products.
HMRC works together with partner agencies such as Border Force and Trading Standards in tackling illicit tobacco. Penalties provide a strong deterrent effect and play a key role in enforcement activity. Published data on seizures, criminal investigations and civil penalties related to tobacco can be found here https://www.gov.uk/government/publications/annual-outputs-for-tacking-tobacco-smuggling(opens in a new tab)
The scope, impact and effectiveness of penalties are continually reviewed as part of the wider tobacco strategy. Strong enforcement supported by robust penalties has contributed to a significant reduction in the estimated duty gap by around one third for cigarettes (from 16.9% in 2005 to 10.5% in 2023 to 2024) and by nearly two thirds for hand-rolling tobacco (from 65.2% to 22.9% over the same period).
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Local government finance policy statement 2026-27 to 2028-29
The government has announced the value of the new consolidated Public Health Grant. This will bring together funding from the existing Grant, using the same distribution approach as in previous years, with the following funding streams:
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Drug and Alcohol Treatment and Recovery Improvement Grant (DATRIG), worth £1 billion.
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Local Stop Smoking Services and Support Grant, worth £210 million – this includes the additional £70 million for local stop smoking services.
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Individual Placement and Support Grant, worth £67.3 million.
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Existing public health funding for the Swap to Stop scheme, worth £50 million.
The Grant has been allocated for 3 years to provide greater certainty to local authorities. Full allocations will be published at the provisional Settlement.
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Faculty of Public Health report – Making the Tobacco Industry Pay for the Health Harms it Causes: The Polluter Pays Levy
The Faculty of Public Health has published a new position statement supporting a polluter pays levy scheme on tobacco products in the UK.
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University of Bath – Smoke and mirrors: Unmasking disinformation from the tobacco industry
In this report, the University of Bath outline tobacco industry disinformation, and presents evidence against tobacco industry claims.
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Smokefree Sheffield – Lung disease hits harder than you think
Smokefree Sheffield have launched a new campaign “Lung Disease Hits Harder Than You Think.” The campaign highlights the long-term effects of smoking on physical health, specifically raising awareness of smoking-related Chronic Obstructive Pulmonary Disease (COPD).
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Health Foundation response to the Autumn Budget
The Health Foundation’s response to the Autumn Budget highlights areas of progress, such as extending the Soft Drinks Industry Levy, but highlights the lack of a “coherent long-term strategy for improving the nation’s health.”
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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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