- The UK plan could phase out smoking among young people by 2040
- Scientists and activists welcome the move
- Changes could hurt big tobacco companies, stocks fall
- Tobacco industry warns of unintended consequences
MANCHESTER, England, Oct 4 (Portal) – The British government proposed on Wednesday to ban younger generations from buying cigarettes. The move would impose some of the strictest smoking rules in the world on the country and hurt sales for major tobacco companies.
If passed into law, the smoking age would be raised by one year each year and smoking among young people could be almost completely eliminated as early as 2040, according to a briefing paper.
“A 14-year-old will never be legally sold a cigarette today,” Prime Minister Rishi Sunak said at the Conservative Party conference where he announced the plan.
Smoking costs Britain’s healthcare system 17 billion pounds ($20.6 billion) a year, he said, adding that the government also needs to crack down on youth vaping.
According to the briefing paper, discussions will be held on limiting the flavors and descriptions of e-cigarettes and looking at regulating the packaging and presentation of e-cigarettes.
Campaign group Action on Smoking and Health welcomed Sunak’s plans, adding they could hasten the day when smoking is obsolete.
The tobacco industry criticized the proposals. The tobacco manufacturers’ association said they were a “disproportionate attack” on the rights of adults and would fuel black market trade.
“Banning legal products always has dangerous side effects and opens the door for criminal gangs to sell illegal products,” it said.
Imperial Brands (IMB.L), maker of Winston cigarettes and Golden Virginia rolling tobacco, also warned that the ban feared “unintended consequences.” Lucky Strike and Dunhill maker British American Tobacco (BATS.L) said the proposals would be difficult to implement.
[1/2]A cigarette butt is seen in an ashtray on a street in Liverpool, northern England, October 17, 2016. Portal/Phil Noble/File Photo acquire license rights
Gradual effect
The smoking policy would have to pass a free vote in the British Parliament. This means lawmakers can vote however they want and not in accordance with party politics.
If passed, Britain would be the first country in Europe to join New Zealand, which announced a similar plan last year, banning smoking for future generations.
Scientists said raising the smoking age has successfully reduced smoking rates among young people around the world.
Analysts said the change could hurt companies that make a relatively large portion of their profits from British tobacco sales, such as Japan Tobacco (2914.T), maker of Camel and Benson & Hedges, and Imperial Brands.
While the short-term impact was likely minimal, the impact of the ban could “become gradually felt” over time, said Owen Bennett, an analyst at Jefferies, adding that people ages 18 to 25 account for about 10% of those current adult smokers in the UK.
Shares in Imperial Brands fell 3.2% to their lowest level since March 2022, while shares in BAT, which has less exposure to the UK cigarette market, fell 1.2% by 1357 GMT.
A risk for all companies is that other nations follow this example, emphasized Bennett. Denmark is already considering a similar move, and a number of countries also aim to reduce smoking to a minimum in the relatively near future.
($1 = 0.8247 pounds)
UK office reporting and Emma Rumney; Editing by Michael Holden, Sachin Ravikumar and Alex Richardson
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