Bans Could Cost £Billions and Jobs

The vaping sector has grown over the past decade into a multi-billion-pound industry. As of 2021, it contributed £1.325 billion in direct turnover, which more than doubles to £2.8 billion when accounting for the wider economic impacts through supply chains and consumer spending by employees within the sector. The industry also generated £310 million in tax revenue in 2021, further highlighting its significance to the UK economy​​.

The vaping industry supports approximately 18,000 full-time equivalent jobs across various sectors, including manufacturing, distribution, and retail. These jobs are critical not only for the individuals employed but also for the broader economic stability of communities where these businesses operate. The potential job losses from an outright vaping ban would therefore have a ripple effect, exacerbating economic challenges in regions already struggling with employment issues​​.

Disposable Vape Ban 

Starting April 1, 2025, a ban on disposable vapes will be implemented in an attempt to combat underage vaping and reduce the environmental impact. However, it is important to acknowledge that this ban could pose considerable economic, social, and health challenges. The Association of Convenience Stores (ACS) warns that even a ban limited to disposable vapes could result in a substantial rise in illicit trade, potentially boosting the illicit market by £645 million. This not only undermines legal businesses but also exposes consumers to unregulated and potentially dangerous products​.

The illicit vape trade also presents significant health risks as unregulated products often do not meet safety standards, leading to potential health hazards for consumers. The financial burden on the NHS could increase due to the treatment of health issues arising from the use of these unsafe products.

Banning disposable vapes could also unintentionally create an additional barrier for smokers trying to quit, potentially leading to higher costs for the NHS. Currently, smoking costs the NHS around £1.9 billion annually​​. Disposable vapes are often seen as an accessible and convenient option for smokers transitioning away from traditional cigarettes. Restricting their availability could hinder smokers' efforts to quit, potentially increasing smoking-related illnesses and the associated healthcare costs​​.

Bans Around the World

Internationally, countries implementing similar bans have experienced a surge in illicit vape markets. For instance, in South Africa, a ban on certain vape products led to an immediate and significant increase in illicit market activities. This illegal market not only deprived the government of tax revenue but also posed severe health risks due to the circulation of unregulated products, which often do not meet safety standards. Such scenarios increase the financial burden on health services, as they must handle complications arising from the use of these unsafe products. This example underscores the need for a balanced approach that includes robust regulation and effective enforcement to mitigate the negative impacts of such bans while supporting public health objectives

Andrej Kuttruf, CEO of Evapo commented on these findings "In light of the proposed disposable vape ban set for April 2025, we face a critical juncture for the vaping industry and the UK economy. Our analysis, supported by the Centre for Economics and Business Research, indicates that bans could jeopardise £2.8 billion in economic contributions and 18,000 jobs. The vaping sector has evolved into a significant economic pillar, supporting thousands of jobs and generating substantial tax revenue. Removing disposable vapes from the market could inadvertently hinder smokers' efforts to quit, escalate NHS costs, and drive consumers towards unsafe, illicit products. We urge policymakers to consider these economic and health ramifications carefully."

Sources:

1. https://ukvia.co.uk/wp-content/uploads/2022/11/Cebr_Report_06092022-clean.pdf 
2. https://ukvia.co.uk/first-ever-report-into-vapings-impact-on-uk-economy-reveals-flourishing-multi-billion-pound-industry/ 
3. https://www.ukvia.co.uk/findings-of-the-first-ever-report-into-vapings-impact-on-the-uk-economy-to-be-revealed-by-the-ukvia-tomorrow/ 
4. https://ukvia.co.uk/first-ever-report-into-vapings-impact-on-uk-economy-reveals-flourishing-multi-billion-pound-industry/ 
5. https://www.retail-insight-network.com/news/acs-645m-illicit-trade-spike-vape-ban/ 
6. https://hub.blsa.org.za/covid-19/illicit-trade-problems-and-solutions/ 
7. https://ash.org.uk/media-centre/news/press-releases/latest-figures-show-cost-of-smoking-in-england-up-25-to-at-least-21-8-billion 
8. https://www.gov.uk/government/news/smokefree-generation-one-step-closer-as-bill-introduced 

Photo Credit:

• Photo by Susan Q Yin on Unsplash

Dave Cross

Journalist at POTV

View Articles

Dave is a freelance writer; with articles on music, motorbikes, football, pop-science, vaping and tobacco harm reduction in Sounds, Melody Maker, UBG, AWoL, Bike, When Saturday Comes, Vape News Magazine, and syndicated across the Johnston Press group. He was published in an anthology of “Greatest Football Writing”, but still believes this was a mistake. Dave contributes sketches to comedy shows and used to co-host a radio sketch show. He’s worked with numerous start-ups to develop content for their websites.