Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information her Department holds on the reasons for the Office for Budget Responsibility's projected fall in tobacco revenue between (a) 2022-23 and (b) 2023-24; and if she will review the tobacco excise model.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC publishes commentary on tobacco duty receipts with the Tobacco Bulletin - Tobacco statistics commentary April 2025 - GOV.UK. The 12% decrease in tobacco duty receipts between 2022/23 and 2023/24 was primarily driven by falling cigarette receipts (£7,568 million to £6,535 million).
The Office for Budget Responsibility discusses drivers of tobacco duty receipts in relation to the tobacco duty forecast on their webpage - Tobacco duties - Office for Budget Responsibility.
Receipts are driven by inflation (CPI and RPI), real household consumption and underlying trends in tobacco consumption.
The downward trend in tobacco consumption has accelerated in recent years, partly reflecting changing attitudes and the increasing popularity of e-cigarettes.
The Office for Budget Responsibility regularly reviews its forecasting methodology.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the (a) reasons for trends in and (b) potential impact of smoking rates on the level of duty paid on tobacco sales in the 2023-24 financial year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Office for Budget Responsibility discusses drivers of tobacco duty receipts in relation to the tobacco duty forecast on their webpage - Tobacco duties - Office for Budget Responsibility.
Receipts are driven by inflation (CPI and RPI), real household consumption and underlying trends in tobacco consumption.
The downward trend in tobacco consumption has accelerated in recent years, partly reflecting changing attitudes and the increasing popularity of e-cigarettes.
HMRC publishes commentary on tobacco duty receipts with the Tobacco Bulletin - Tobacco statistics commentary April 2025 - GOV.UK. The 12% decrease in tobacco duty receipts between 2022/23 and 2023/24 was primarily driven by falling cigarette receipts (£7,568 million to £6,535 million).
The Office for National Statistics publishes commentary on adult smoking habits in the UK where they have reported a reduction in the estimated proportion of current smokers in the UK from 12.9% in 2022 down to 11.9% in 2023.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information her Department holds on the number of tobacco products bought in (a) 2023 and (b) 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The table below states the estimated tobacco clearances for the calendar years 2023 and 2024:
Year | Cigarette Sticks | Non-cigarette Tobacco Products |
2023 | 17,045 million | 6,497 thousand kg |
2024 | 13,965 million | 5,210 thousand kg |
The totals above are composed of clearances from cigarettes, cigars, hand-rolling tobacco (HRT), other smoking tobacco (also known as pipe tobacco), chewing tobacco, herbal smoking products, and tobacco for heating (TfH).
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made with the Office for National Statistics of the potential impact of tobacco excise duty on the level of the Consumer Prices Index in (a) October 2024 and (b) June 2025.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The independent Office for Budget Responsibility (OBR) are responsible for estimating the impact of Government policies on inflation. The OBR did not include an assessment on the contribution of tobacco excise duty to inflation in either the October 2024 or March 2025 Economic and Fiscal Outlook.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 3 June 2025 to Question 54343 on Tobacco: Smuggling, how many and what proportion of those referrals resulted in the revocation of the business's economic operator registration.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The majority of referrals received so far have been in respect of businesses who do not hold an economic operator registration because they do not sell, or intend to sell, any legitimate tobacco products.
Under The Tobacco Products (Traceability and Security Features) Regulations 2019, a valid Economic Operator ID (EOID) holder who breaches the requirements on a second or subsequent occasion, may have their EOID registration revoked for either 6 months or 5 years. No referrals have met this criterion so far.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 3 June 2025 to Question 54343 on Tobacco: Smuggling, how many and what proportion of those referrals resulted in a penalty; and what the average penalty was.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Of the 312 referrals received by HM Revenue and Customs (HMRC) from local authority Trading Standards, 87 have so far progressed through casework to the issuing of a financial penalty for breaches of the Tobacco Track and Trace requirements. The average penalty charge to date has been £6,005.
The progression of the remaining, and future referrals are expected to result in additional penalty charges being issued.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 3 June 2025 to Question 54350 on Cash Dispensing: Ashfield, how she defines the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
As the regulator responsible for the access to cash regime, the Financial Conduct Authority (FCA) defines reasonable provision on a geographic basis, whilst having regard to the cash access policy statement set out by HMT. The FCA’s rules set out that 95% of people in urban areas should be within 1 mile of a cash access point and 95% of people in rural areas should be within 3 miles of a cash access point. However, the FCA also notes that assessments should take into account local factors when considering whether there is a deficiency of cash services in a local community.
Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. Further information about submitting a cash access request can be found on LINK’s website.
In circumstances where LINK considers that a community requires additional cash services, the financial services sector will provide a suitable shared solution, such as an ATM, cash deposit service, or shared Banking Hub, for cash users in that community.
To ensure the reasonable provision of cash and banking services, the Government is working closely with industry to roll out 350 banking hubs across the UK, which will provide individuals up and down the country with critical cash and banking services. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 225 hubs have been announced so far, and over 150 are already open.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that people (a) in Ashfield constituency and (b) nationwide have access to face to face banking services.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government recognises the importance of face-to-face banking to communities, businesses and high streets in Ashfield and across the UK. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament.
Over 220 hubs have been announced so far, and over 160 are already open.
Banking hubs offer everyday counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services, such as a banking hub or deposit service.
Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many referrals has HMRC received from local enforcement authorities in relation to the penalty regime introduced through the Tobacco Products (Traceability and Security Features) (Amendment) Regulations 2023.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HM Revenue and Customs (HMRC) has received 312 referrals from local enforcement authorities in relation to the penalty regime introduced through the Tobacco Products (Traceability and Security Features) (Amendment) Regulations 2023.
These regulations extended powers to enable Trading Standards to tackle non-compliance with the UK’s Tobacco Track and Trace system, which regulates tobacco at all stages of the supply chain, from manufacture through to retail. Trading Standards can make referrals to HMRC on potential breaches of the law, for HMRC to impose penalties.
Asked by: Lee Anderson (Reform UK - Ashfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help ensure access to cash in Ashfield constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules require the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts. Data from LINK (the operator of the UK’s largest ATM network) identifies 66 ATMs in Ashfield, including 47 free-to-use ATMs. The UK’s largest banks and building societies are required to assess the impact of a closure or material alteration of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
Assessments are undertaken by LINK, the industry designated coordinating body responsible for conducting cash access assessments. LINK take into account a number of factors including those unique to each location, such as the size and vulnerability of the population and whether it is reasonable for people to travel to nearby facilities, factoring in geographic barriers such as hills, rivers and major roads.
Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. Further information about submitting a cash access request can be found on LINK’s website.
The Government is also working closely with industry to roll out 350 banking hubs across the UK by the end of this Parliament. These hubs will provide small businesses and individuals with critical cash and in-person banking services. Over 225 banking hubs have been recommended to date and over 150 are already open.