ASH Welcomes Health Commission Report
The Action on Smoking and Health charity has welcomed a report from IPPR’s Health Commission setting out its vision for future health policy including a polluter pays levy on tobacco manufacturers
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by Dave Cross
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The Action on Smoking and Health charity has welcomed a report from IPPR’s Health Commission setting out its vision for future health policy including a polluter pays levy on tobacco manufacturers. It believes the money raised should be used to fund prevention initiatives and create market incentives for business to move away from the sale of unhealthy products.
ASH says the report backs its, the Smokefree Action Coalition, and the APPG on Smoking and Health’s call for a price-cap style levy.
“This would cap the wholesale price of tobacco and so reduce the profit margin the companies can make. Retail prices would be kept the same by the introduction of a new polluter pays levy, which would go to the state and could fund prevention activities to support more smokers to quit. ASH estimate that such a levy could raise £700m in the first year,” the charity states.
Currently, it continues, tobacco companies make “significantly higher profits than other manufacturers”.
ASH says: “Imperial Tobacco, the biggest tobacco transnational in the UK with over 40% of the market, made a net operating profit margin of 66.5% in the UK in 2023, while BP’s net operating profit in September 2023 was estimated to be 11.1%. The average for UK manufacturing is under 10%.
“A levy would require primary legislation so as a first step the government should introduce a windfall tax in the Budget.”
Dr Rob Branston, University of Bath, commented: “Tobacco companies make excess profits in the UK, far in excess of most companies, while selling a lethal product. The government could raise an additional £700 million a year while having the additional benefit of maintaining current high retail prices, which disincentivise smoking. As a first step tobacco manufacturers should be subject to a windfall profits tax in the forthcoming Budget.”
Working with Landman Economics, ASH estimates that smoking costs public finances £11.3bn per year with the total cost to the economy estimated to be £46bn a year. Investment in tackling smoking in this parliament would reduce the costs to public finances by 4% and the costs to the economy as a whole by 17%.
Chief Executive of ASH, Hazel Cheeseman said: “Spending to reduce smoking makes sound economic sense, providing immediate returns which grow over time. However, governments often find it difficult to spend on prevention even when the evidence of impact is clear. A levy on tobacco companies provides the resources needed to create a smokefree country at pace, delivering benefits for British productivity and reducing demands on public finances.”
References:
- Cross-party Commission Recommendations - https://www.ippr.org/media-office/cross-party-commission-concludes-three-year-enquiry-with-bold-plan-for-21st-century-health
- ASH’s Smokefree Manifesto - https://ash.org.uk/resources/view/appg-on-smoking-and-health-manifesto-for-a-smokefree-future
- ASH’s economic impact of tobacco and fiscal measures assessment - https://ash.org.uk/uploads/ASH-Autumn-2024-Budget-representation-FINAL.pdf?v=1726563960
Dave Cross
Journalist at POTVDave 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.
