A new report by Action on Smoking and Health (ASH) has revealed that smoking costs society in England a staggering £43.7 billion each year, far exceeding the £6.8 billion generated through tobacco taxes. The study highlights the economic burden of smoking, with lost productivity making up the largest share of the costs.
According to the findings, smoking leads to an estimated £27.6 billion in lost economic productivity due to illness and premature deaths. Additionally, it places a significant financial strain on public services, with £1.82 billion spent on NHS treatments and £13.9 billion in social care costs borne by local authorities. Fire-related damages linked to smoking contribute a further £332 million annually.
ASH warns that unless decisive action is taken, smoking will remain a major obstacle to economic growth. The report urges the government to accelerate its efforts to reduce smoking rates by passing the Tobacco and Vapes Bill and implementing a clear plan to achieve a smokefree country.
The data also underscores the disproportionate impact of smoking on economically disadvantaged communities. Smoking rates in the most deprived local authorities stand at 21.7%, compared to just 6.2% in the least deprived areas. ASH argues that increased investment in smoking cessation programs could provide significant benefits to these communities, both in terms of public health and economic stability.
Despite the substantial revenue generated by tobacco taxes, ASH challenges the claim that these funds offset smoking-related expenses. The report dismisses the notion that reducing smoking rates would harm public finances, pointing instead to the overwhelming financial burden that smoking places on both government resources and individual households.
Importantly, ASH highlights that tobacco taxes are paid by smokers rather than tobacco companies. To address this imbalance, the organisation is calling for a ‘polluter pays’ levy on tobacco manufacturers. This levy would require companies to contribute directly to smoking cessation efforts, rather than shifting costs onto consumers.
Hazel Cheeseman, Chief Executive of ASH, emphasized the need for urgent action:
“These figures show conclusively that tobacco should play no part in our country’s future. Tobacco companies make massive profits selling a lethal addiction which puts pressure on vital public services and the economy. A levy on the tobacco industry is urgently needed to accelerate progress towards a smokefree future, ending the harms from smoking for good.”
Howard Reed of Landman Economics, who contributed to the report’s analysis, echoed this sentiment.
“The ludicrous suggestion in some quarters is that reducing the tobacco market might damage public finances due to a decline in tax receipts. However, this is to see only a very fragmentary part of the picture. Smoking places additional burden on public finances and individual households that far outweighs any ‘benefit’ from tobacco taxes. The country will be better off without the sale of tobacco.”
Dr. Rob Branston from the University of Bath added:
“Tobacco companies have spent decades profiting from addiction and leaving the state to pick up the substantial costs created. A levy on industry will go some way to redress that while providing the needed funding to make smoking history.”
The findings reinforce the urgency of government intervention to curb smoking rates, protect public health, and reduce the long-term economic burden of tobacco use in England.
Discover more news from the vape industry
Enjoyed reading this article? Head over to the ‘News‘ section of the website to discover more vaping-related stories from Vapouround.
