Earl Russell (LD)

My Lords, I will speak to Amendment 204 in my name and those of the noble Lords, Lord Young of Cookham and Lord Crisp, and the noble Baroness, Lady Walmsley. I thank them for their support for this important amendment. This amendment proposes a “polluter pays” levy on tobacco manufacturers, ensuring that those who profit from one of the most harmful products in human history contribute to repairing some of the immense damage they have caused. The principle is simple and widely accepted: when an industry causes profound harm and reaps extraordinary profits, it should help to meet the costs of addressing that harm. Given the unambiguity of that harm, it is only right that those who are responsible contribute to putting it right. The amendment would require the Secretary of State, within two years of Royal Assent, to establish a levy on companies deriving income from the manufacture of tobacco products. Its receipts would form a dedicated fund within the Department of Health and Social Care used solely for smoking cessation, tobacco control and healthcare for those suffering from smoke-related illnesses. Regulations would be made under the affirmative procedure to ensure proper parliamentary oversight. This is not a new charge on consumers. It draws on the vast profits of an industry that for decades has taken far more from the public purse and the public’s health than it has ever contributed. Four companies control over 95% of UK tobacco sales, enjoying monopoly-like power and profit margins averaging 50%, some five times the UK manufacturing norm. Together they make almost £900 million a year in UK profits, and they often pay little corporation tax here in the UK. Compare that with the cost. Smoking drains £43.7 billion a year from society in England, including a cost of £1.8 billion to the NHS and far more in lost productivity, social care and human suffering. Tobacco duty and VAT raise barely £6.8 billion—only a fraction of the real cost of these harms. The “polluter pays” principle already underpins environmental law and is embedded in gambling reforms, where a statutory levy funds prevention and treatment. It is only logical to apply the same reasoning to tobacco, a product that kills nearly 74,000 people every year in England.