UK consultation to be held on tobacco industry ‘levy’

The UK Treasury is to launch a consultation on a potential levy on the tobacco industry, according to a story by Jill Treanor for The Guardian.

Although the Chancellor, George Osborne, did not mention the consultation during his autumn statement to MPs on Wednesday, it was included in documents released alongside the statement.

‘Smoking imposes costs on society, and the government believes it is therefore fair to ask the tobacco industry to make a greater contribution,’ Treanor quoted the Treasury as saying.

‘The government will shortly launch a consultation on introducing a levy on tobacco manufacturers and importers.’

Deborah Arnott, the chief executive of Ash, described the announcement of the consultation as “almost like Christmas come early”.

In another Guardian story in September, the UK’s tobacco industry was said to have reacted with ‘fury’ to a plan by the opposition Labour Party leader, Ed Miliband, to impose an additional tax on Britain’s tobacco companies to help pay for National Health Service spending.

Miliband told delegates at the annual party conference in Manchester that it was fair to impose additional costs on an industry that makes “soaring profits on the back of ill health”.

The UK is due to hold a general election on May 7 next year.