New figures show cost of smoking to society in England dwarfs tobacco tax revenue

Correction: An earlier version of this press release mistakenly included some regional statistics for London instead of the correct national data. This has now been updated. We apologise for any confusion. You can view the full list of regional press releases online.

Today, Action on Smoking and Health (ASH) has published new estimates showing that smoking costs society in England £43.7 billion a year – far more than the £6.8 billion raised through tobacco taxes.[1] This includes:

• £27.6 billion in lost economic productivity
• £1.82 billion to the NHS
• £13.9 billion in social care costs to local authorities
• £332 million in fire-related costs

Most of this consists of lost economic productivity from smokers being too sick to work and dying prematurely. Unchecked, this is a major barrier to the government’s ambition to boost economic growth. However, the government could make real progress in reducing this impact during the current parliament by passing the Tobacco and Vapes Bill and delivering on their commitment to create a roadmap to a smokefree country.[2]

The health and economic impacts of smoking are disproportionately concentrated in the most deprived parts of the country, meaning that these areas stand to benefit the most from investment in stop smoking support. Research indicates that 1 in 5 people (21.7%) in the most deprived local authorities smoke, compared to 6.2% in the least deprived areas.

The updated figures also reveal that tobacco excise taxes bring in an estimated £6.8 billion a year. Tobacco companies and their proxies often argue that tax revenue offsets the financial burden of smoking, and that reducing smoking will damage tax receipts. However, this argument is undermined by the clear impact of smoking on the public finances and economic productivity.

Importantly, tobacco taxes are paid by smokers – not by tobacco companies. ASH has called on the government to impose a ‘polluter pays’ levy on tobacco manufacturers to raise the funding needed to end smoking. Unlike tobacco taxes, this would be paid by tobacco companies and could not just be passed on to smokers.

Hazel Cheeseman, Chief Executive of ASH, said:
“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 has undertaken much of the unpinning analysis for these costs, said:
“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, 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.”

ENDS

Notes to the Editor
Action on Smoking and Health (ASH) is a health charity working to eliminate the harm caused by tobacco use. For more information, visit ash.org.uk. ASH receives funding for its programme of work from Cancer Research UK and the British Heart Foundation.

For interviews or more information, contact press@ash.org.uk

References
[1] The full dataset is available online: ASH Data and Cost Calculators

[2] Labour Party. 5 missions for a better Britain: Build an NHS fit for the future. 2023