UK Vaping Industry Association warns business rates crackdown could drive responsible retailers out of business and undermine efforts to help smokers quit
The Prime Minister has been accused of demonising responsible vape shops and risking public health after the Government singled them out as “anti-social businesses” while announcing a major business rates cut for pubs, clubs and live music venues.
The UK Vaping Industry Association (UKVIA) has demanded an immediate review of the announcement, warning that the Government’s blanket attack will punish legitimate high street retailers that help adult smokers move away from cigarettes.
Under the plans, pubs, social clubs and live music venues in England will receive a 20% reduction in their business rates bills from April 2027.
The Government said the measure would be partly funded by reviewing reliefs for businesses it claims do not make a positive contribution to their communities, explicitly identifying vape shops.
UKVIA Director General John Dunne said: “This is a deeply misguided and potentially damaging attack on an entire sector.
“The Government is offering significant financial support to venues that sell alcohol, a product associated with substantial and well-established health and social harms, while threatening to penalise responsible businesses that help adult smokers move away from cigarettes.
“Legitimate specialist vape shops provide advice and practical support to adults trying to switch from smoking to a far less harmful way of consuming nicotine.
“To describe those businesses as anti-social is insulting and risks reinforcing the dangerous misconception that vaping and smoking are equally harmful. In addition, legitimate vape businesses pay their taxes and business rates and thus contribute to the national and local economies while retailers selling illicit products are far less likely to do so.
“Pubs, clubs and live music venues are an important part of many communities but the Government cannot credibly argue that every venue selling alcohol is a community asset while every shop selling a regulated alternative to cigarettes is a social menace.”
The announcement comes as vape retailers are already bracing themselves for a new Vaping Products Duty (VPD) which will come into effect from October and add £2.20 to the price of every 10ml of e-liquid.
John Dunne added: “The Prime Minister should withdraw this damaging characterisation immediately, meet with responsible vape retailers and ensure that licensed, compliant outlets are protected from any removal of business rates relief.
“Policy should be based on the conduct of individual businesses and the evidence about the products they sell, not prejudice against an entire industry.
“To threaten these same businesses with the loss of rates relief on top of vaping products duty could sound the death knell for many responsible specialist stores, driving legitimate retailers out of business and handing a further advantage to rogue traders operating outside the law.”
The UKVIA said it fully supported tough action against retailers that sell vapes to children, stock illegal products or market them irresponsibly.
However, it warned that the Government was failing to distinguish between legitimate specialist retailers and rogue stores that sell illegal vapes alongside sweets and toys in ways that risk appealing to children.
The UKVIA is also calling for a national vape retail licensing scheme which would allow the Government to identify legitimate retailers, enforce clear standards and remove persistent offenders from the market.
Licensing would also allow outlets that comply with age-verification, product and marketing rules to remain eligible for the same relevant business rates and tax reliefs as other lawful high street businesses.
The UKVIA is calling for:
- An immediate Government review of the announcement.
- The withdrawal of blanket language describing vape shops as anti-social.
- Fast tracking a national vape retail and distributor licensing scheme which already forms part of the Tobacco and Vapes Act.
- Licensed and compliant retailers to remain eligible for relevant business rates and tax reliefs.
- Tougher penalties and properly resourced enforcement against underage sales and illegal vaping products.
- A clear distinction between responsible specialist retailers and rogue stores selling illegal products or marketing vapes in ways that appeal to children.
Mr Dunne added: “Retailers who sell to children or trade in illegal products should face severe penalties and, ultimately, lose their right to sell vapes but punishing every vape shop because some traders break the law is totally counterproductive and illogical.”
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