Tobacco and Vapes Bill Debate
Full Debate: Read Full DebateLord Kamall
Main Page: Lord Kamall (Conservative - Life peer)Department Debates - View all Lord Kamall's debates with the Department of Health and Social Care
(1 day, 13 hours ago)
Grand CommitteeMy Lords, in some ways this group will follow on from the last; some of the comments I will make now could be applied to the previous group of amendments. 
Noble Lords will be aware that, as discussed in the previous group, the licensing regime the Bill sets out is complex. Many of the Bill’s provisions are yet to be determined in regulations, meaning that businesses across the country are faced with something they dread: uncertainty. Some retailers have told me they already see this on top of the double whammy of increases to employer national insurance contributions and the minimum wage, and they have had to face that doing business is more difficult, as is taking on new employees. 
We all know that the large retailers have public affairs teams, legal teams and compliance teams, all helping them navigate the complexities of changes in legislation. For them, the sale of tobacco and tobacco products counts for a small proportion of their total revenue stream. However, the situation could be very different for small, family-run businesses, staffed by two, three or four people, often working from dawn to dusk—staffing the till and the counter, and sorting out bills and expenses. For many other people, just managing half this workload would be a good day’s work. Imagine, on top of all this, having to find the time to understand, and make changes to abide by, these new regulations.
My Lords, I thank noble Lords for the amendments in this group.
I note the comments from the noble Lord, Lord Kamall, that the noble Lord, Lord Mott, is not in his place to speak to his amendments, but I will just touch on them briefly, if I may. Basically, his amendments seek to require licensing regulations to be made within three months of the relevant provisions in the Bill coming into force. The amendments would also extend the existing retailer register in Northern Ireland. I emphasise that, of course, the Government share the noble Lord’s desire to move as quickly as possible to implement the licensing scheme. That is why we have recently launched the call for evidence on the range of issues that we have laid out, including questions on the design of the retail licensing scheme. The feedback received will be absolutely critical, and we want to get on and launch this as soon as possible. However, it is also important that the Government have sufficient time to ensure that the regulations are properly thought through. I hope that the noble Lord, Lord Mott, when he hears the discussion, will be reassured and understand that three months is not sufficient time to run a consultation, analyse the feedback received and prepare well-considered regulations. That is as much as I shall say on his amendments.
Turning to the amendments in the name of the noble Lord, Lord Kamall, I hope to give him the reassurance that he seeks, as we discussed in last week’s Committee, that I understand these particular concerns. His amendments would similarly require Ministers to publish draft regulations implementing a retail licensing scheme for England and Wales within six months of the Bill achieving Royal Assent.  The Government are committed to ensuring that those impacted by regulations and those with expertise have the opportunity to contribute their views. We want to minimise additional costs and burdens as far as possible, while ensuring that the scheme is a success and achieves our aims of supporting legitimate businesses as well as tackling those that disregard the law.  Again, the recently published call for evidence seeks input on a range of topics, including the implementation of the retail licensing scheme. As I have said, this will inform the consultation, which we will launch as soon as possible.
To respond directly to the noble Lord’s comments, our call for evidence also asks about the implementation of the scheme and how long will be required to implement the policy. We will, of course, work through the appropriate channels to ensure that businesses have the necessary guidance to implement the changes. I cannot emphasise enough that this is for all businesses, regardless of their size or the organisations that represent them. We want to make sure that we get that message out loud and clear, so that they have confidence that their views will be regarded with the same importance as all those who contribute to the policy.
I note the noble Baroness’s comments about making sure that we get this right, so we cannot be beholden to specific timeframes on the face of the Bill. We all acknowledge that this is a complex policy and, while we want to move swiftly, it is important that there is enough time to ensure that the policy is properly thought through before developing regulations. I repeat that requiring the Government to publish draft regulations before adequate consultation may risk creating a flawed policy. For the reasons that I have outlined, bringing together previous comments, I hope that the noble Lord will feel able to withdraw the amendment.
My Lords, I am grateful to the Minister and to all noble Lords who spoke in the debate on this group of amendments. The intention was always that these would be probing amendments; whether it was three months, as from my noble friend Lord Mott, or six months, as from us, we wanted to get some certainty and find out whether, at this stage, any thought has been given to an outline timetable. This is so that the retailers that will have to face this new licensing regime can understand the different stages—the Minister laid out some of the consultation stages—and the overall timetable. Here we are, getting towards the end of the 2025, and they are wondering, “When will this new licensing regime be in place? Will it be sometime in 2026 or in 2027?” That is the sort of outline assurance they want.
It was very helpful of the Minister to mention some of the consultation stages, but it would also be helpful if, perhaps in writing, she could give us a timetable that relates to real dates in the next two or three years—and, in doing so, avoid “in due course” or “as soon as possible”—so as to reduce the uncertainty for those retailers that will have to prepare for this measure. I also welcome the acknowledgement from the Minister of the importance of consulting small retailers—that point has already been made in our debates on previous groups—as well as her understanding of the role that these small retailers play. The burden for them is very different and disproportionate as compared to that for some of the larger retailers.
In general, we welcome the tone from the Government and understand that there must be consultation stages. However, we are asking for some sort of outline timetable in writing, if possible, on when the Government envisage the licensing regime being in place—with the usual caveats, perhaps, depending on what comes back from the consultation. Some certainty would be really welcome at this stage.
Having said that, and having reflected on the comments from the Minister, I beg leave to withdraw the amendment in my name and that of my noble friend Lord Howe.
My Lords, I have added my name to Amendment 34 in the name of my noble friend Lord Russell and Amendments 141 and 143 in the name of my noble friend Lord Rennard. I will also rehearse arguments in favour of Amendment 33 in the name of the noble Baroness, Lady Bennett of Manor Castle, for the consideration of the Committee. The noble Baroness, Lady Fox, suggested there is some confusion about why people might want to ban filters. I agree with the noble Lord, Lord Crisp, that a ban is about both public health and environmental considerations.
 It has been clearly shown that filters of all kinds have no health benefits whatever. Indeed, I maintain that they are actively harmful to health, but I will come to that later. They are also very costly to public authorities and bad for wildlife and the environment. Filters have been called, by a Back-Bench Member of the government party, 
“the deadliest fraud in the history of human civilisation”.—[Official Report, Commons, 26/3/25; col. 1043.]
because they were formerly advertised—when cigarette advertising was still allowed—as being safer and less harmful to health than cigarettes without filters. This lie has had a long tail because even now only 25% of people understand that they have no health benefits. 
As a result of the false perception that the filter—because of its very name as pointed out by the noble Lords, Lord Young and Lord Bourne—removes some of the tar and other harmful tobacco chemicals, evidence shows that smokers of filtered cigarettes inhale deeper and more frequently. Proof that filters were invented to deceive is the fact that they were deliberately made from a white substance which turns brown when heated, adding to the illusion that they were removing some of the harmful elements from the tobacco smoke. This was deliberately to mislead the smoker.
Filters of all kinds are bad for the environment. The plastic ones in particular contain thousands of toxic substances, including microplastics and nanoplastics. They take up to 10 years to break down in the environment, releasing all these microplastics as well as the 7,000 toxic chemicals from the on average five millimetres of tobacco that remains attached to each butt. These are washed into our soils and water systems and damage marine life, other wildlife and our drinking water. 
Microplastics are ubiquitous. They have been found from the top of Mount Everest to the deepest oceans. They cause cancer, including colorectal, liver, pancreatic, breast and lung cancers, and the levels of them found in human brains—causing who knows what effects—have increased by 50% since 2016, according to pathologists. Even the so-called biodegradable ones contain microplastics in the glue and in any case take a very long time to break down. I deliberately put one in my compost heap, and it was still there a year later. In any case, they, too, always have some tobacco attached. They have zero health benefit and lead to a false sense of security. 
The environmental damage is also very costly. We all pay to clean them up when they are discarded through littering; as has been said, local authorities spend £40 million every year, money paid by taxpayers—you and I—which could be better spent on public health and other services. Some 86% of the public and even most smokers believe that manufacturers should switch to fully biodegradable filters rather than plastic ones, but, frankly, I think that is not enough to fix the problem, for the reasons I have outlined.
The killer fact, to coin a phrase, is that there is a strong epidemiological link between the rise in the prevalence of cigarettes containing filters and the proportionate rise of a kind of cancer called adenocarcinoma, while other lung cancers have fallen along with the reduced prevalence of smoking overall. A paper by Min-Ae Song et al published in the Journal of the National Cancer Institute in America in 2017 analysed 3,284 citations in scientific literature and internal tobacco company documents and concluded thus:
“The analysis strongly suggests that filter ventilation has contributed to the rise in lung adenocarcinomas among smokers. Thus, the FDA should consider regulating its use, up to and including a ban”.
 
Indeed, such a link had originally been suggested by the surgeon-general as far back as 2014. Therefore, I am inclined to support Amendment 33 in the name of the noble Baroness, Lady Bennett, but at the very least I hope the Government will accept Amendment 34 in my name and that of my noble friend Lord Russell.
On Amendments 141 and 143 in the name of my noble friend Lord Rennard, I hope the Minister will see the sense of consulting on this. Not every cigarette smoked by a child or a young person or an adult smoker comes immediately out of a packet bearing health warnings. Many children, when they start illicit smoking, share a packet among themselves and many never get to see the packet at all. That is why the principle, already accepted by successive Governments, that a health warning on the packet should accompany tobacco-containing products should apply to individual products and not just the packaging. I am aware that the Government plan to make sure that there is an insert in each packet signposting smokers to cessation services and products. This is a welcome positive measure to accompany the deterrent measures of health warnings, but it is not enough. I am sure the first thing many will do is throw away the insert and never read it, as people sometimes do with pills. They cannot throw away the paper that wraps the cigarette. That is why it would be the most effective place to put the warnings.
If you believe that the health warnings on packages work and deter, how much more effective would it be to reinforce that message every time a cigarette is removed from them? A consultation and a review of the evidence of the ban in other countries would be a good idea, and I recommend it to the Minister.
My Lords, I thank the noble Baronesses, Lady Bennett of Manor Castle, Lady Grey-Thompson and Lady Walmsley, and the noble Earl, Lord Russell, for introducing the amendments in their names.
I am sorry to interrupt, but I asked how long the Government think they will need for evidence from Australia and Canada before they will be in a position to judge whether those health warnings have been effective. Can the Minister answer that either now or in writing? Secondly, do the Government have any evidence on what wording is most effective for health warnings? Once again, the answer could be in writing.
I will gladly add to the brief points that I am going to make to the noble Lord. I was just about to turn to international comparisons. Sometimes, I feel the answer is “How long is a piece of string?” However, quite seriously, we constantly keep international comparisons under review because we are keen to learn and see. The challenge, which I will come on to, is to draw exact comparisons, for a range of reasons, including on what we are already doing. 
On the point about international comparisons, it is important that we recognise that the UK already has some of the most stringent regulations in the world on tobacco packaging, which already emphasise health harms. This includes the requirement for plain packaging and graphic picture warnings on the outside of cigarette packets. As I have already referred to and noble Lords have discussed, we have announced that we will be introducing pack inserts to cigarettes and hand-rolling tobacco. I understand the motivation for these amendments, but we do not plan to introduce dissuasive cigarettes at this time. We will continue to monitor the evidence. 
We are implementing many of the recommendations of the Khan review. This point was raised by the noble Lord, Lord Rennard. For example, we are majoring on the smoke-free generation policy, which is a major shift. Not only are we implementing many of these recommendations but we continue to keep them under review. 
My noble friend Lady Ramsey asked about targets. Again, they will be kept under review. Unsurprisingly, our real target is delivering the Bill and designing the regulations so that they work. Some of this is also about where we can make the greatest impact in the quickest way, which is why we are focusing on the inserts rather than looking for additional things to do at this stage. 
I hope that this is of some interest and reassurance to noble Lords and that they will feel able not to press their amendments.
My Lords, I will speak briefly on amendments in this group in the name of my noble friend Lord Bethell and the noble Baroness, Lady Walmsley, before turning to the amendment in my name and the name of my noble friend Lord Howe. They propose the establishment of a new licensing scheme for the distribution of tobacco, vape and nicotine products in addition to the retail licensing scheme already provided for under the Bill. 
While I understand the rationale behind these amendments, I am sure it will come as no surprise that we have some concerns. My noble friend Lord Howe and I have already shared concerns about the impact of the regulatory framework of this Bill and the burden it will place on legitimate businesses, especially small retailers and distributors, which are already subject to extensive compliance requirements under existing law, and which will be beset with further regulation under the proposals outlined in the Bill. 
However, we understand the underlying concerns behind these amendments about the illicit market, so we believe that they are helpful in probing the Government to understand where they believe there are enforcement gaps and whether they have evidence of gaps in enforcement at the wholesale level of the supply chain. I am, therefore, grateful to my noble friend Lord Bethell and the noble Baroness, Lady Walmsley. Our understanding is that there are concerns over enforcement in relation to illegal imports at the customs level and illicit point-of-sale activity. These amendments give noble Lords an opportunity to ask the Minister where the Government believe the enforcement gaps are, and whether they currently exist. 
In addition, if the Government have identified these gaps in enforcement at the wholesale level, do they believe that they could be best tackled by having a new, separate distributor licensing scheme, or do they share concerns over creating a second, parallel system operating alongside the retail one? My noble friend Earl Howe and I are concerned that such duplication risks adding unnecessary administrative complexity for local authorities, trading standards and legitimate operators alike. We also have concerns over how these two systems would interact, and whether businesses operating both wholesale and retail functions would be required to hold multiple licences and pay multiple fees. We are interested in the views of the Minister about our concerns.
Amendment 190, in my name and that of my noble friend Earl Howe, would require the Government to prepare and publish a national illicit tobacco and vape enforcement strategy within one year of the passing of this Act. This is a probing amendment—we have suggested one year; it could be slightly longer or shorter. We believe that this is a practical proposal which chimes with the intentions and ambitions of the Government on this Bill. Indeed, it is a concern that has been raised by noble Lords on all sides of the Committee. All noble Lords are concerned about illicit sales of tobacco and vapes, wherever we sit in this Room. 
While we entirely share my noble friend Lord Bethell’s concern about the rise in illicit trade, we believe that the Government need a far more comprehensive view of how products enter, move through and are sold within the United Kingdom. They must develop an overall strategy to cover the stages of the supply chain from the point of import to transportation within the UK and, ultimately, to the sale of these products on our streets and online. In short, we need a coherent and strategic plan of enforcement that gives an overview, rather than one which tries to attack certain bits. Once we have the overview, we can look at where the gaps in enforcement exist and seek to plugs those gaps. 
The trade in illicit tobacco and vape products is a serious and growing concern. We have heard throughout Committee that the introduction of a generational ban and other prohibitions in this Bill may, if not properly managed, risk pushing more activity underground into the illegal market. No noble Lord wants this to happen. No one benefits from a thriving illegal market but criminals and those that seek to circumvent the law. It undermines legitimate businesses, deprives the Exchequer of revenue and exposes consumers—often young people—to unregulated and potentially dangerous products. 
That is why we believe it is essential for the Government to set out clearly how they intend to meet this challenge, and to explain who will lead, how the agencies will co-ordinate, what resources will be allocated and how success will be measured. We have attempted to be careful and sensitive in drafting this amendment; it does not demand an immediate response but sets out a reasonable and deliberate timetable. It gives one year, or perhaps a bit more, for the Government to prepare, consult on and publish a coherent strategy. That would give Ministers the time to review the evidence, engage with enforcement agencies and draw together the different strands of policy that are already being developed across departments. 
If this Bill is to succeed in its wider aims, it must also be accompanied by a credible and co-ordinated plan to tackle the illicit market that so often undermines those very goals. This probing amendment simply seeks to understand how the Government intend to develop a strategy to tackle the illicit market, and whether they intend to take an overall and strategic view.
My Lords, I am most grateful for the contributions in this debate and for these amendments, which rightly highlight the need to take a systematic approach to the illicit market. Having said that, we do not believe them to be necessary; I will gladly set out the reasons why in my remarks.
First, I am grateful for Amendments 39 to 41, 53, 54, 58 to 62, 123 to 125, 133 to 138, 206 to 208 and 212 from the noble Lord, Lord Bethell, which were spoken to by the noble Baroness, Lady Walmsley. I am sympathetic to the aims contained in these amendments; the Government certainly share the aim of strengthening enforcement throughout the supply chain and ensuring that only legal products are on the UK market. As noble Lords are aware, the Bill provides powers for the Government to implement a licensing scheme for tobacco and vape retailers. The focus on retailers is to ensure that illicit products do not reach members of the public where they pose a risk to public health. The retail licensing scheme will enable conditions to be imposed on retailers as part of the terms for obtaining a licence. We expect all retailers to comply with the law and not sell illicit products; doing so will risk their licence being revoked.
In addition to the licensing scheme, the Bill provides powers for the Secretary of State to develop a new registration scheme for the products covered by the Bill. This will require all tobacco, vape and nicotine products to be registered before they can enter the market, meaning that wholesalers will be unable to supply illicit products to retailers as only compliant products should be available. The powers provided by the Bill also allow for the testing of products to ensure that they are what they claim to be. This will make it easier for enforcement officers to identify illicit products and to clamp down on both those who do not register products and those who seek to mislead.
The noble Baroness, Lady Walmsley, asked about spice vapes. I have a couple of points to make here. Vapes containing controlled drugs, including spice, are obviously illegal; naturally, this is a matter for the police and Border Force. I am sure that it will be understood that the regulation of controlled drugs is not a matter for this Bill. However, the measures in it will create a simpler and clearer regulatory environment, which will assist enforcement agencies in identifying and taking action against non-compliant vapes. Border Force is taking action to detect and seize supplies of vapes laced with drugs at the border and is following law enforcement to dismantle the criminal gangs that attempt to smuggle illicit commodities into the UK. It is of course worth noting that the import, production or supply of a class B drug such as spice carries a maximum sentence of up to 14 years of imprisonment, an unlimited fine or both.
As well as the new measures in the Bill, there are already policies in place to manage products through the supply chain. The noble Lord, Lord Kamall, asked questions and made important points about the role of HMRC. For tobacco, HMRC already operates the tobacco “track and trace” system, which tracks the movement of all tobacco products, whether manufactured in or imported into the UK, through the supply chain all the way up to retail.
Also, the vaping products duty will come into force on 1 October next year, taxing vaping liquids at 22p per millilitre. To support the implementation of the duty, HMRC is introducing a range of measures, such as a duty stamps scheme to support the identification of non-duty-paid products, as well as investment in more than 300 additional enforcement officers. Vaping duty stamps will be in a hybrid digital and physical format, which will allow product tracing and authentication. Together, these schemes will better support a compliant market and weed out illicit products, as we all seek to do.
I am grateful to the noble Lord, Lord Kamall, for tabling Amendment 190, which seeks to publish a strategy to deal with illicit tobacco and vapes. I understand the concerns that have been raised regarding illicit sales, but this amendment is unnecessary given that the Government already publish a strategy on illicit tobacco sales.