In an effort to prohibit smoking for future generations, UK Prime Minister Rishi Sunak wants to progressively raise the smoking age. In order to ensure that “a 14-year-old today would never legally be sold a cigarette,” Sunak stated at the Conservative Party convention in Manchester on Wednesday that the age will rise by one year each year. Along with limiting their availability, the government intends to examine the flavors and packaging of disposable vapes.
The UK parliament would have to authorize the idea, and Sunak stated that the vote would be free and that the lawmakers’ choice would be “a matter of conscience.”
Imperial Brands Plc’s stock dropped as much as 4.3% in London, making it the largest cigarette retailer in the UK. British American Tobacco Plc had a 1.9% decline, with the majority of its sales coming from countries other than Britain.
Non-Smoking Policy
Although the UK wouldn’t be the first, the law would be among the most stringent anti-smoking laws in the world. A rule banning the sale of cigarettes to anybody born after 2008 was approved in New Zealand last year. In the UK, 18 is currently the minimum age to purchase cigarettes.
The tobacco industry is competing to provide substitutes like vapes, gadgets that heat tobacco and oral nicotine. Given that one in five youngsters use vaping products, Sunak said that the UK must take action before vaping becomes an epidemic.
Imperial Brands stated their opinion about the non-smoking policy commenting that Over time, the idea to prohibit the sale of cigarettes legally poses a serious risk of unintended consequences. We will keep working with the government to develop rules that effectively block youth access to vaping.
Goal to be smoke-free by 2030
According to Sunak, smoking costs the NHS £17 billion ($20.7 billion) a year, and the decision would assist the UK reach its objective of becoming smoke-free by 2030.
The plans are bad for Imperial Brands and Japan Tobacco Inc. because of their high exposure to UK combustibles, but they are truly optimistic” for British American Tobacco because of their low presence in that market and their leadership in non-disposable vapes, according to a note by Jefferies analyst Owen Bennett.
According to a survey commissioned by the government last year, during the Covid epidemic, the percentage of 18 to 24-year-olds who smoke increased from one in four to one in three. According to the survey, smokers in the most economically depressed areas of the UK spend an excessive amount of money on tobacco, with the typical northeastern English smoker spending more than 10% of their salary on smoking.
Michelle Mitchell, Cancer Research UK’s chief executive officer commented on the new policy by stating that increasing the age of sale for cigarettes is a crucial step to becoming smoke free by 2030.
Impact of the smoking ban
According to experts, the shift might harm businesses like Japan Tobacco, the manufacturer of Camel and Benson & Hedges, and Imperial Brands that get a sizable amount of their revenue from British tobacco sales.
The impact of the prohibition, although probably insignificant in the near term, has the potential to gradually become serious over time, according to Owen Bennett, an analyst at Jefferies, who also noted that those in the 18–25 age group make up around 10% of adult smokers in Britain as of 2023.
