ASH Demands UK Government Tax Tobacco Manufacturers to Fund Pub Tax Cuts

ASH tobacco tax UK, Andy Burnham vape tax, tobacco industry levy, Tobacco and Vapes Bill

The UK public health organization ASH has called on Prime Minister Andy Burnham to tax tobacco manufacturers to offset the societal costs of smoking. This demand follows the Prime Minister’s announcement of a 20% business tax reduction for pubs, clubs, and music venues, which will be funded by removing tax exemptions from unregulated vape shops.

Local authorities have increasingly criticized unregulated vape shops, linking their growth to high street decline, illicit sales, and money laundering. The government confirmed that the hospitality tax cuts will be funded by reviewing aid to businesses that do not contribute positively to local communities, specifically targeting these electronic cigarette retailers.

ASH argues that if the government aims to make businesses with negative societal impacts pay their share, tobacco manufacturers must be included. The group has campaigned for a specific levy on tobacco profits, aligning with the WHO Framework Convention on Tobacco Control (FCTC). ASH estimates this levy could raise £5 billion (€5.8 billion) over five years to fund smoking cessation services.

Researchers from the Tobacco Control Research Group at the University of Bath suggested a “polluter pays” model. This approach involves capping wholesale tobacco prices while increasing excise duties. This shifts the financial burden from consumers and retailers directly onto tobacco companies’ profit margins.

Tobacco remains the leading cause of preventable death in the UK, claiming 80,000 lives annually. The economic toll in England alone stands at £44.8 billion (€52.4 billion) per year. While the tobacco industry provides only 5,000 direct jobs, ASH argues a smoke-free society would redirect household spending, potentially creating 135,000 jobs. Surveys show 77% of British adults support forcing the tobacco industry to pay for its societal damages.

This domestic push aligns with the global “Make Big Tobacco Pay” campaign. In June 2026, international NGOs and legal experts mobilized to demand that tobacco companies cover their environmental and health damages rather than outsourcing these costs to taxpayers. The UK is already advancing its Tobacco and Vapes Bill, which introduces a generational sales ban for anyone born after 2009.

Matthew Ma
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