Tobacco and Vapes Bill

Lord Johnson of Lainston Excerpts

Tuesday 24th February 2026 Lords Chamber

I believe in this passionately, and I cannot think of any reason why the Government would resist this amendment, apart from the “not invented here” type of reason. So, given that I won over the Minister on one matter earlier today—she heard me proudly just now move an amendment formally, which of course I had never done before—can I persuade her to come on board with this one as well? If she does not pick it up in exactly this form today, can she give an undertaking, which I am sure the whole House would welcome, that she will come back at Third Reading with something that has a similar effect? I beg to move.

[Lord Johnson of Lainston (Con)]

I am never quite sure whether I should declare an interest in this debate as someone who has smoked the occasional cigar, but on this set of amendments I declare an interest in that I have teenage children. I see their actions, which chime very much with what the noble Lord, Lord Moylan, has just discussed.

We are in danger of creating a two-tier system—we do this across the board, and I am afraid we in this House are guilty of it—whereby we have excess intense regulation, which affects law-abiding citizens and consumers, and we focus on that, feeling that we have done our job and can sit back and relax, having stopped smoking, drinking or whatever it may be. But the reality is that we simply end up creating a second and entirely unregulated market.

I saw the same documentaries that my noble friend saw and was surprised, but not by the clandestine nature of organisations and illegal groups of pirates supplying illegal cigarettes and vape products under the counter or under the table in a pub—these were shops that were well advertised. In fact, I was quite impressed with some of the branding. Some of them were chains; they have become multinational corporations with headquarters, running an effective illegal system that pays no taxes. Clearly, as these documentaries showed, they had other issues, such as money laundering and very bad employment systems.

In conversations with the Minister, I have been encouraged by the realisation of this two-tier issue. It is not simply in the physical sense; it is also online. The teenagers I speak to say they have never actually bought a legal packet of cigarettes. It would not occur to them: at £20 a packet, they would be better off taking up cigars. Instead, they buy everything online, where there are no age checks. They can usually get hold of somebody else’s credit card, and it is delivered to the house. I find it very alarming that we will spend our time in these debates, and the Government will spend a huge amount of effort on a so-called ban of smoking and nicotine products, while at the same time allowing an illegal market to flourish.

From conversations with the Minister, which I found extremely helpful, I am aware that online sales are hard to regulate because of how enforcement happens at the local level: there is no one authority, although specific authorities will take leads in certain areas. There does not seem to be enough money or focus on this important issue. I am saying this because I care about the retailer and about the end ambition, in some measure, of this overall government initiative. It would be extraordinary if we focused all our efforts on a great sledgehammer to crush legal, law-abiding and decent retailers who are trying to do their job, and law-abiding consumers, without realising that we are creating another monster that needs to be tamed.

[Lord Udny-Lister (Con)]

I shall talk about the two amendments in my name. First, the Bill does not provide a deterrent; the proposed fixed penalty of £200 is nothing to those involved in this illicit trading and organised criminal activity. It is obvious that the unscrupulous retailers will simply absorb the costs and just continue with what they are doing.

It is worth mentioning at this point—and I have seen this—that when people are selling illegal tobacco it is not under the counter. You can have a nice card with all the different brands laid out for you to pick and choose from. It is very professional: a serious bit of criminality out there. I might add that I do not smoke, but I have seen it with others. That is why I am seeking through this amendment support to introduce a stepped penalty regime, escalating for repeat offenders and enabling referral to national and enforcement bodies where organised criminality may be involved. If we want to stand any chance of cutting down this illicit trade and the sale of tobacco and vapes, enforcement must have real teeth. Without a stepped penalty regime and referral powers, the Bill and the generational ban will be nothing more than symbolic.

Amendment 63 is on the points I have just made about having a more robust and stepped approach to penalty notices. I want to strengthen enforcement further by introducing a new statutory referral duty where a fixed penalty notice is issued. If the Bill does not confront the organised criminal network, it will just continue. We want local authorities to issue fixed penalties, and then to refer the matter to the National Crime Agency and relevant police forces and to share intelligence, which is key. It is further my intention that this amendment place a statutory duty on the NCA and police to investigate whether organised crime, excise or VAT evasion is at scale or other serious offences are involved.

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Taken together, these amendments are tightly targeted, proportionate and evidence-based. They are rooted in a simple proposition that good regulation should be proportionate to risk, that distinctions long recognised in law should not be erased without evidence and that, in pursuing public health objectives, we should remain attentive to regulatory fairness and common sense. I beg to move.

[Lord Johnson of Lainston (Con)]

My Lords, first, I thank the Minister for her highly engaged approach to these issues facing small specialist tobacconists in the niche handmade, hand-rolled cigar industry. I also appreciated the assistance of her officials at the Department of Health, who have been sitting through a very long debate and must be wondering when it is going to end; I think this is the last group. They demonstrated a high level of understanding of cigars, their impact on health and the effects this Bill could have on the people involved in the specialist industry. I really do appreciate that. We have had a hugely successful, open dialogue around what is a very important issue.

I believe from my conversations with the Government that they do not want to destroy this important cottage industry of mainly small family-owned firms—which, I might add, attract a huge amount of tourism to this country and are world class in their standards of service and compliance. They sell a product which is not associated with childhood smoking, and they are not at risk of contributing to the remorseless rise of vapes, snuses and other nicotine delivery products. Wonderful shops like Davidoff, Fox, Sautters and Cgars, to name a few, employ hundreds of people and give satisfaction and happiness to thousands more.

It is very important that we accept the amendments proposed by my noble friend Lord Lindsay to protect these stores, especially those in the cluster of St James’s Street. I know we will come on to this later, but I would particularly welcome comments from the Minister on guidance to local authorities in this area, which reflects a number of the points in these amendments, as well.

The issues around packaging are also surprisingly important to the industry. We are not asking for anything other than a commitment to the continuation of existing legislation, which protects how speciality tobacconists display cigar products and can trade new and, importantly, vintage cigars. These products have to be stored and distributed in cedar or cedar-lined wooden boxes, which cannot be changed at source. It is important for noble Lords to understand this; they have to be transported in a certain way, in a certain type of box. It is not simply about moving them into some other type of packaging; and the packaging cannot be changed at source, since they predominantly come from important trading partners such as Cuba or the Dominican Republic, which do not have the capacity to change the packaging to enable us to have plain packaging.

By the way, the boxing and labelling system also helps ensure authenticity. This follows the discussion we had about counterfeiting earlier.

It is also important to recognise that these boxes and how the cigars are packaged are a far cry from packaging that advertises or that is targeted at children. It should be noted that health warnings are already applied to all these boxes. I stress that we are not looking for a carve-out or loophole with these amendments; we are looking simply for the continuation of a sensible policy to allow a niche industry of speciality tobacconists, with important trading partners, to exist and continue its trade as planned. This fits in with the express quotes from the Minister that, in effect, preserving the status quo as it stands today and rolling it forward is part of the Government’s agenda. We respect that and find it enormously helpful.

There is overwhelming evidence that going back on this original legal commitment would mean the end of the specialist cigar industry, so if we introduced plain packaging, it would be devastating for this important area of our economy and would have no benefit to the overall plan of making Britain smoke-free either.

I went to inspect the offices of Hunters & Frankau, which is the main importer of Cuban cigars, to see how a ban on ordinary box packaging could be implemented. If your Lordships saw the hundreds, if not thousands, of product lines in this Indiana Jones-like warehouse—I must say, when I had a chance to tour those storerooms, it was a very happy moment for me—your Lordships would see that it is totally impractical to bring in some type of plain packaging, given the way these authentic handmade products are sourced and distributed.

Canada and Australia have been quoted as having brought these measures into place. They are very different markets, so I do not think they are comparable in reality. In actuality, it has led to the almost total collapse of the handmade cigar industry as a result of the reduction of lines from many hundreds down to a few tens. The effect has not been on large multinationals or big tobacco; it has been the closure of many small businesses. Family-owned tobacconists and specialty suppliers have closed as a result. Needless to say, the consumer also suffers.

Finally, I would be grateful to hear confirmation that the Government have no plans to go back on previous legislation that allowed for a very small number of sampling rooms in this country—I believe the number is fewer than 30. These are not to be confused with so-called cigar lounges, of which there are many, which are predominantly outdoor areas, albeit with some type of heating and sometimes roofing. The investment in these humidors, which is what they are, with sampling rooms attached, has been significant. Several major hotels have integrated them into their business model. They are part of the supply chain of handmade premium cigars and to disestablish them would cause significant unnecessary harm.

I reassure noble Lords that at no point will these actions create a loophole for big tobacco. I am very aware that that has happened in the past, with flavourings, cigarillos and so on. Protecting these characteristics will not see an increase in youth smoking. I think we are all agreed on that. No one I have met, even those who are most fanatical about this Bill—some people are, and I do not disrespect that—wants to see an end to our specialist tobacconist industry today.

These are small, family-owned businesses, which behave impeccably, are drivers of tourism, create income for the Exchequer and behave extremely effectively in providing a niche community with cigars. To have clear commitments about these important matters from the Minister at the Dispatch Box would allow the industry to continue to be a highly responsible part of British retail. It would allow these small, family-owned stores to continue to drive footfall and income for this country. It would be a fair way to treat the adult, free-choosing, occasional cigar smoker into the future too.

[Baroness Bennett of Manor Castle (GP)]

My Lords, as we have already heard, the amendments in this group seek to carve out exemptions for specialist tobacconists, particularly when it comes to cigars. I will focus primarily on Amendments 126, 127, 147 and 192. I begin by focusing on what cigars actually are. They are often described—and we have heard them described—as luxury or artisanal goods, but they are, first of all, carcinogenic tobacco products that are harmful to human health.

I support the Government’s approach, as the Bill stands, to comprehensive tobacco control regulation that ensures that future generations do not become addicted to any form of tobacco. We have heard arguments that their use is infrequent and primarily among those over the age of 25. Indeed, the absolute numbers show that the majority of cigar smokers are over 25, but that reflects population size. In reality, among smokers—this is a really important point—the younger someone is, the more likely they are to be smoking cigars. Toxic influencers such as Andrew Tate actively promote cigar use to a young, predominantly male audience, linking cigars with power, wealth and success. We know how quickly this kind of influence can spread and be taken up if we leave loopholes for it.

As we have already heard, cigars have traditionally benefited from carve-outs of regulation on things such as pack size, flavours and packaging. Were we to change that now it would open the door to future innovations, as some of the proponents of these amendments have already acknowledged, with, for example, cigarillos. Action on Smoking and Health data shows that these are popular among young people who smoke: 35% of 11 to 17 year-olds have tried them in 2024 and 2025. We must not leave space in the Bill for innovation by the merchants of death, which I am afraid these amendments do.

Although I understand the intention behind the amendments that refer to plain packaging, I do not support them. The suggestion is that plain packaging will be fatal to the industry. I note that New Zealand, Australia, Canada, Ireland and Uruguay all apply standardised packaging to all tobacco products, including cigars. Data from Canada shows that, since that has come in, there has been only a very minor drop in the sale of cigars, in line with traditional long-term trends.

It is also important to note that the power to introduce plain packaging for cigars is not new. It already exists under regulations introduced in 2015 by the Conservative-Liberal Democrat coalition and implemented by a subsequent Conservative Government. The Government issued a call for evidence on this in November 2024.

Finally, I will touch very briefly on smoke-free places and cigar lounges. I do not support Amendment 192. Yes, the customers may choose to be in that space, but the staff may not have a realistic practical choice about being there; it may be the only job they can get. We do not want workers exposed to second-hand smoke under those kinds of conditions.