Britain government proposes ban on cigarettes for younger generations

Britain government proposes ban on cigarettes for younger generations

Oct 5, 2023 - 10:30
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Britain government proposes ban on cigarettes for younger generations

The British government on Wednesday proposed a law that would forbid children under 18 from ever purchasing cigarettes, making it one of the nations with the strictest smoking laws in the world and hurting the profits of the biggest tobacco companies.

A briefing paper stated that if approved into law, the smoking age will increase by one year each year, potentially phasing out youth smoking as early as 2040.

“A 14-year-old today will never legally be sold a cigarette,” Prime Minister Rishi Sunak told the Conservative Party conference, where he announced the plan.

He claimed that smoking costs the British health system $20.6 billion annually and added that the government also needed to take action against youth vaping.

According to the briefing paper, it would advise on limiting the flavors and descriptions of vapes and consider regulating vape packaging and presentation.

The anti-smoking advocacy group Action on Smoking and Health applauded Sunak’s initiatives and said they might speed the day when smoking is no longer acceptable.

The suggestions were criticized by the tobacco industry. According to the Tobacco Manufacturers Association, they would encourage black market commerce and were a “disproportionate attack” on the rights of adults.

“The prohibition of legal products always has dangerous side effects and opens the door to criminal gangs to sell illegal products,” it said.

Imperial Brands, which makes Winston cigarettes and Golden Virginia rolling tobacco, also warned the ban threatened “unintended consequences”. Lucky Strike and Dunhill maker British American Tobacco said the proposals would be difficult to enforce.

Gradual impact

The smoking policy would need to pass a free vote in Britain’s parliament. This means lawmakers can vote however they like rather than in line with party policies.

If passed, Britain would become the first country in Europe to join New Zealand, which announced a similar plan last year, in banning smoking for future generations.

Academics said increases to the smoking age have successfully reduced smoking rates among young people around the world.

The change could hurt companies who generate a relatively large portion of their earnings from British tobacco sales, analysts said, such as Japan Tobacco, maker of Camel and Benson & Hedges, and Imperial Brands.

While short-term effects were likely minimal, over time the ban’s impact “could gradually become material”, said Owen Bennett, analyst at Jefferies, adding people aged 18-25 make up around 10% of Britain’s current adult smokers.

Shares in Imperial Brands fell 3.2% to their lowest since March 2022, while shares in BAT, which has a lower exposure to the British cigarette market, were down 1.2% by 1357 GMT.

A risk for all companies is that other nations follow suit, Bennett noted. Denmark is already considering a similar move, and a number of nations also have targets to reduce smoking to minimal levels in the relatively near future.

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