'It's not a good idea': East Midlands Stop Smoking expert against Vape Tax

The Chancellor's rumoured to announce a levy on the liquids used in vapes in his Spring Budget today

Published 6th Mar 2024

A tax on vape liquids 'really isn't a good idea', according to the former head of Leicestershire and Rutland's Stop Smoking Service.

Chancellor Jeremy Hunt is rumoured to include a new tax on vape liquids in the Spring Budget tomorrow, in what could be the Government's last fiscal event before a general election.

It's thought a specific levy on the liquids used inside vapes would generate around £500m for the Treasury.

Former head of the Stop Smoking Service in Leicestershire and Rutland, Lou Ross, said any move to make vapes more expensive will contradict the Prime Minister's own aim to go smoke free by 2030.

'Putting a tax on the liquid that these people will be using, especially given that they will be people with poor mental health; people in difficult circumstances; living in poverty, is entirely the wrong way to go in my opinion.'

'To get the country smoke free by 2030... that will be undermined by the wrong message.'

'We know from talking to smokers, they need that high-strength liquid to get off cigarettes, if they're heavily dependent on smoking tobacco.'

'I work with a number of people who have experience with homelessness, who are in recovery from substance use, who exist on very little money.

'Put extra tax on vapes, and this will deter them from going down that route.'

What else is expected in the Spring Budget?

Chancellor Jeremy Hunt has signalled he wants to move towards a "lower tax economy" in a hint at a pre-election giveaway to voters in the form of a national insurance or income tax cut.

He is expected to announce an extension the current 5p cut in fuel duty for another year and avoid an inflation-linked rise in the levy, in a move that will cost the Treasury around £5 billion.

Mr Hunt has been clear that he will not pay for tax cuts with borrowing, meaning a combination of spending cuts and tax rises elsewhere will be necessary for him to keep to his own fiscal rules on debt.

There has been speculation he could shave more off his post-election public spending plans, reducing overall departmental spending - currently pencilled in to rise by 1% per year in real terms after 2025 - to 0.7%.

But experts have already cast doubt on the whether the existing plans are realistic, as they would involve significant cuts to under-pressure unprotected services such as the courts, police and local authorities.

The policy is a key plank of Labour's plans and adopting it could lay a trap for Sir Keir Starmer's party, which would have to find an alternative way to pay for pledges including NHS improvements.

Shadow chancellor Rachel Reeves criticised the Tories for "pickpocketing the Labour Party of its policies".

Other rumoured rises include a tax break for second-home owners who rent out their properties to tourists.

Speculation ahead of the Budget has suggested the Chancellor could seek to cut 1p or 2p off income tax or - as a cheaper alternative - national insurance, to ease the burden on working households and set dividing lines with Labour ahead of the general election later this year.

Shadow paymaster general Jonathan Ashworth said a "prudent" Budget would "put living standards first and it's got to look at public services".

He pointed to a tax burden reaching record levels and expected to rise to its highest point since the Second World War.

"People are worse off under the Tories because of 25 tax (rises), which means working families are something like £1,200 worse off", he said.

"I don't actually think the British public will believe Rishi Sunak and Jeremy Hunt when they know Rishi Sunak has a record of whacking up tax on working people... Let's see if they actually wipe out the 25 tax rises."

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