Tobacco: Taxation

Treasury written question – answered on 12th September 2018.

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Photo of Rachael Maskell Rachael Maskell Shadow Minister (Transport)

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a tobacco industry levy to fund smoking cessation services provided by local authorities.

Photo of Robert Jenrick Robert Jenrick The Exchequer Secretary

The government has no current plans to review the decision not to introduce a tobacco levy. A levy would complicate the tax system, impose an administrative burden on businesses and HMRC and would create uncertainty for businesses and consumers.

The 2015 Spending Review made available £16 billion of Public Health Grant funding for local authorities in England over the five years to 2020. Tobacco control is within this remit. The ring-fence around the public health grant remains in place for this financial year and the next, as does the requirement for local authorities to use their grant to reduce inequalities in health.

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