Chancellor Jeremy Hunt announces a new tax on vaping products to combat rising vaping rates among young people, alongside various measures in the Spring Budget aimed at creating a healthier, smoke-free generation.
In a significant move to tackle smoking and vaping among the young population in the UK, Chancellor Jeremy Hunt announced a new tax on vaping products, scheduled to come into effect in October 2026. This levy, specifically targeting the liquid in vapes with higher taxes for those containing more nicotine, is part of a broader government strategy to combat the accessibility and appeal of vaping to children and teenagers. It follows a governmental ambition to create a “smoke-free generation,” which also includes the unprecedented step of prohibiting tobacco sales to individuals under 14 years of age. The announcement was made as part of the Chancellor’s Spring Budget for 2024, which also saw the introduction of various other measures aimed at sectors across society, from workers and motorists to investors and the NHS.
The decision to tax vapes comes amidst growing concerns over the impressive number of young people between 11 and 18 years of age engaging in vaping. Reports indicate that 3.7% of this demographic in Great Britain are regular vapers, a statistic that has prompted action from health authorities and the government alike. Moreover, the Budget outlines an increase in tobacco duty as another step to deter the initiation of smoking among teenagers, further complementing the effort to protect younger generations from nicotine addiction.
Apart from public health measures, the Budget touched on several areas aimed at boosting the UK economy and providing financial relief to certain segments of the population. Highlights include a 2p cut in national insurance, a freeze on fuel duty, and increased support for parents via adjustments to the high-income child benefit threshold. Meanwhile, the housing market saw no direct relief, and increased taxes were announced for non-domiciled residents and holiday let owners.
One of the more contentious outcomes of the Budget has been reactions to the vape tax from various stakeholders, with some critics labeling it as potentially counter-productive. Despite this, the UK government emphasizes that this measure, along with the upcoming ban on disposable vapes and the limitation on vape flavours and packaging, is essential in preventing non-smokers from starting the habit while keeping vaping as a less harmful alternative for current smokers.
Further investment in the NHS was another stand-out feature of the Budget, with £3.4 billion allocated towards improving NHS productivity through initiatives like the expansion of artificial intelligence and reducing paperwork for medical professionals. An additional £2.45 billion is directed towards day-to-day NHS spending to cover healthcare wages among other priorities, underscoring the government’s commitment to bolstering the healthcare system.
As the UK moves towards the next general election, the impacts of these budgetary decisions on various sectors and the economic landscape at large remain to be seen, with Parliament set to scrutinize and debate the measures in detail.
