Tobacco and Vapes Bill (Seventh sitting)

The Committee consisted of the following Members:

Chairs: Peter Dowd, † Sir Roger Gale, Sir Mark Hendrick

† Ahmed, Dr Zubir (Glasgow South West) (Lab)

† Al-Hassan, Sadik (North Somerset) (Lab)

† Barros-Curtis, Mr Alex (Cardiff West) (Lab)

† Bool, Sarah (South Northamptonshire) (Con)

Chambers, Dr Danny (Winchester) (LD)

† Cooper, Dr Beccy (Worthing West) (Lab)

† Dickson, Jim (Dartford) (Lab)

† Foy, Mary Kelly (City of Durham) (Lab)

† Gwynne, Andrew (Parliamentary Under-Secretary of State for Health and Social Care)

† Jarvis, Liz (Eastleigh) (LD)

† Johnson, Dr Caroline (Sleaford and North Hykeham) (Con)

† Osborne, Tristan (Chatham and Aylesford) (Lab)

† Owatemi, Taiwo (Lord Commissioner of His Majesty's Treasury)

† Rankin, Jack (Windsor) (Con)

† Stafford, Gregory (Farnham and Bordon) (Con)

† Stainbank, Euan (Falkirk) (Lab)

† Whitby, John (Derbyshire Dales) (Lab)

Chris Watson, Kevin Candy, Sanjana Balakrishnan, Committee Clerks

† attended the Committee

Public Bill Committee

[Sir Roger Gale in the Chair]

Tobacco and Vapes Bill

Clause 15

Free distribution and discount of products

Question (14 January) again proposed, That the clause stand part of the Bill.

11:30:00

I remind the Committee that with this it will be convenient to discuss the following: Clause 62 stand part. Clause 80 stand part.

I made my substantive points in the previous sitting, so I just want to summarise my position and conclude. Clauses 15, 62 and 80 concern the free distribution and discount of products. I support the Government wholeheartedly on tobacco products, but I tried to make the point that I believed there was a legitimate and responsible avenue for vaping and nicotine products to offer such discounts, particularly in the example that I gave, where a responsible vaping company was in partnership with the NHS to help to achieve the aim of the Bill of a smoke-free generation. I cannot support clauses 15, 62 and 80 in their current form and intend to vote against their standing part of the Bill.

Clause 15 makes it an offence to give away or discount any vape product. That is important because discounts encourage us to buy more things. That is what they are there for; it is what promotions are for. They encourage us to buy things that we did not want or need. We do not want people to consume excessive quantities of vapes that they do not want to have, but that does happen. A cursory glance on the internet shows that numerous websites are advertising vape discount codes and vouchers offering 10% or 15% discounts on vapes, as well as giftcards that are readily available for online purchase. The clause therefore replaces section 9 of the Tobacco Advertising and Promotion Act 2002 and extends its scope, as there are currently no restrictions on businesses freely distributing nicotine and non-nicotine vaping products, cigarette papers and herbal smoking products. In 2023 the former Prime Minister, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak), created an illicit vapes enforcement squad, backed by £3 million. It was designed to close the legal loophole that allowed the vaping industry to provide free samples of vapes to be distributed regardless of consumer age. That was patently unacceptable, and I welcome the action that the previous Government took on the issue. I point out that giving away vapes was pretty common. In fact, my own parliamentary staffer went to a promotional event on vaping held in Parliament itself, in this very House, and was given free samples of Vuse vapes. I have been made aware by staffers that similar events take place outside Parliament, so I think that this is a useful clause and I will support it.

It is a pleasure to serve under your chairmanship, Sir Roger. May I start by not only thanking the shadow Minister for her support, but congratulating my hon. Friend the Member for Dartford on his birthday? [Hon. Members: “Hear, hear!”] It is a real pleasure that we are able to provide him with a full day’s entertainment—better than Netflix.

I thank the Minister very much for his birthday felicitations. There is nowhere I would rather be than here.

I only hope that is not open to challenge.

I was just about to say, Sir Roger, that might be one thing that we have to divide on later. I wish my hon. Friend the Member for Dartford all the best for today and hope that he gets home in reasonable time to enjoy with friends and family what is left of his birthday. I thank hon. Members for their speeches on these clauses today and earlier this week. The Government have two objectives on vaping. The first is to tackle youth vaping. Too many children are vaping and vapes are attractive and accessible to them. The Bill will bring about definitive and positive change to prevent future generations from becoming hooked on nicotine. The second objective is to support adult smokers to access vapes to help them to quit smoking. As the chief medical officer says: “If you smoke, vaping is safer; if you don’t smoke, don’t vape; and the marketing of vapes to children is utterly abhorrent.”––[Official Report, Tobacco and Vapes Public Bill Committee, 7 January 2025; c. 11, Q8.] I concur with that entirely. In support of those aims, the clauses do not apply to licensed medicines and there is a defence available when any free vaping or nicotine product is given out in accordance with arrangements made by a public health authority or a public authority. That means that smoking cessation services will be able to continue to support adult smokers to quit smoking, for example by providing free smoking cessation quit aids where appropriate. That includes our national swap to stop programme that continues to help smokers move from cigarettes to vapes. I also stress that we will continue to work with the Medicines and Healthcare products Regulatory Agency to support applications from industry for vapes as a licensed medicine. As Dr Laura Squire, the MHRA chief healthcare quality and access officer, stated in the evidence session, there may be progress in this area. I hope that that assures hon. Members that we continue to take a balanced approach to vaping, both through the measures in the Bill and our wider work on tobacco control. More generally, the clauses make it an offence to give away any tobacco, herbal smoking, vaping or nicotine product as well as cigarette papers if the purpose or effect is to promote any tobacco, herbal smoking, smoking-related, vaping or nicotine product to a member of the public of any age—for England and Wales, in clause 15, for Scotland, in clause 62, and for Northern Ireland, in clause 80. The maximum penalty for the offence will be imprisonment for up to two years, a fine, or both. The clause also extends to coupons and vouchers and to selling a product at a substantial discount. These measures mean that disreputable actors cannot bypass the restriction by offering a free voucher for a product instead of a free product. The clause also covers products that promote any of the aforementioned products—for example, t-shirts with vape company branding to promote vapes cannot be freely given away. On discounts, we are only prohibiting substantial discounts, so we can make sure that businesses cannot heavily discount products to the point at which the price is no longer relevant. Businesses can still discount products if they choose to. Clause 62 also includes a power for Scottish Ministers to create additional defences. It should never have been the case that addictive nicotine and vaping products could be legally handed out for free. This is one of the many avenues by which industry is addicting our children. It is for these reasons I commend the clauses to the Committee. Question put and agreed to. Clause 15 accordingly ordered to stand part of the Bill. Clause 16 Prohibition of retail sales of tobacco products etc in England without a licence Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss the following: Schedule 1. Clauses 17 and 18 stand part. Schedule 2. Clause 19 stand part. Schedule 3. Clauses 20 and 21 stand part. Schedule 4. Clause 22 stand part. Clause 85 stand part. Schedules 11 to 13.

I put on the record my good wishes for a happy birthday to the hon. Member for Dartford. He shares a birthday with both my daughter and my son’s science teacher, and I wish them all a happy birthday. While fully enjoying and engaging with this very important piece of legislation, I understand his urge to celebrate his birthday later, and I hope he will be able to do so. This is quite a big group of clauses. They provide for the licensing regime for retail sales of various products, tobacco products and others in England and are quite complex. Clause 16 provides the Secretary of State with the power to make regulations on the granting of personal and premises licences. It establishes a licensing system for the sale, storage, exposure and supply of tobacco, vaping and nicotine products in England and outlines the requirement for individuals and businesses involved in the retail of those products to hold specific licences. The clause can essentially be broken down as follows. Subsection (1) establishes that individuals in England are prohibited from selling, displaying for sale or possessing certain relevant products, such as tobacco, vaping and nicotine products, unless they have a valid personal licence. That ensures that all transactions are regulated and aims to control access, ensure compliance with legal standards and promote accountability among retailers in handling those products. Clause 16 also effectively creates a licensing framework to monitor and enforce sale practices. That is important, because we have heard evidence—and seen for ourselves when we walk down the street—that virtually every shop, whatever it sells otherwise, sells vapes. The clause will help to reduce the number of outlets selling those products and ensure that they are being sold responsibly and only to those above the age of sale. Subsection (2) mandates that premises cannot be used for certain activities involving the relevant products, including storing, displaying or supplying them without a valid premises licence. Again, that ensures that the locations themselves are regulated by requiring a licence, which allows for oversight of operations, ensures compliance with health and safety and legal standards and prevents and reduces unauthorised and illicit sales. That will help to enforce accountability and the responsible handling of regulated goods. Subsection (3) allows the Secretary of State to create by regulations exemptions to subsections (1) and (2) if he or she wishes to do so. Subsection (4) requires the Secretary of State to create regulations governing the granting of both personal and premises licences. That provision is essential to establish clear criteria and procedures for individuals and businesses seeking licences to sell, store or display relevant products. Subsection (4) will ensure that those activities are conducted responsibly and legally, aligning public safety standards and allowing for consistent oversight, as I said. It ensures that there is a thorough process in considering input from those who are directly affected by or have expertise in the matter. Subsection (7) specifies that regulations under the clause are subject to the affirmative resolution procedure, which we have talked about before. Subsection (8) defines key terms, such as “personal licence”, “premises licence” and “relevant products”, ensuring that there is clarity in the interpretation and application of the provisions so that individuals subject to them understand what their duties involve. Schedule 1 concerns the retail licensing scheme for England only. To tackle the illicit market and protect legitimate businesses, the Bill provides powers to introduce a new retail licensing scheme in England for tobacco, vapes and nicotine products. The schedule details the regulations for a retail licensing scheme and explains the regulations that the Secretary of State can implement under the powers granted in clause 16, which mandate that retail sales of those products in England must be licensed. There clearly needs to be a licensing authority, and the regulations will designate a local authority as the responsible body for granting licences to retailers that wish to sell tobacco, vaping and nicotine products. With regard to yesterday’s statement on the changes to some local authorities, it is important that the provisions in the schedule work, even in the event that the local authorities change as part of that process. The regulations on licensing conditions can prevent the granting of licences in certain areas—for example, near schools—limit the number of licences in specific areas and require premises to be inspected before a licence is granted. The licensing authority can charge a fee to cover the cost of administering and enforcing a licensing scheme, and a portion of those fees may be allocated to other bodies involved in the enforcement process, especially if licensing and enforcement are handled by different authorities. The regulations will also do other sensible things; they mention the licence duration, public disclosure and how to renew and appeal any licence that has been either granted or refused. The Secretary of State will be able to provide guidance to the local authorities providing the licensing duty on how to carry out their duties in that respect. The impact assessment on the Bill, which was published by the Department for Health and Social Care in November 2024, notes: “A retail licensing scheme for the sale of tobacco, vaping and nicotine products would support enforcement (and in turn, public health) by: a) strengthening retailers’ adherence to existing regulations” and by “b) providing the opportunity to introduce further restrictions…in the interest of public health, for example conditions relating to retail density.”

11:45:00

There has been public support for retail and licensing schemes. A survey conducted by Action on Smoking and Health in 2022 found that 81% of retailers support the introduction of a tobacco licence, with just 9% opposing it. A 2023 survey found that 83% of the public support tobacco retail licensing, making it the most popular intervention among adults surveyed. The Government will have an opportunity to do something popular, which they might relish for a change given the current circumstances.

If we look at international examples of tobacco licensing schemes, there is evidence that introducing or strengthening licensing leads directly to a decrease in tobacco retail density. In Finland, there was a 28% decrease, in Hungary an 83% decrease and in Australia a 24% decrease. The evidence is that licensing reduces the number of outlets selling these products, which would seem to be the aim of this measure and is a good thing.

Clause 17 outlines the offences related to licensing in connection with the sale of tobacco, vaping and nicotine products. Essentially, someone commits an offence if they violate the prohibition in subsections (1) or (2) of clause 16—that is, the licensing rules—or if they commit an offence of providing false or misleading information to the licensing authority during either the application for the personal licence or the application for the premises licence, or if they breach any other obligation required by the regulations referred to in subsection (4).

The information must be false or misleading in a material aspect, that is, in a way that could affect the desire to grant a licence, and the person must know, or ought to reasonably know, that the information was wrong when they when they gave it. A person convicted under clause 17 may receive a fine for which there is no maximum amount. As an alternative to criminal prosecution, the local weights and measures authorities may issue a fixed penalty notice for these offences under clause 37, which we will come to later today.

Clause 18 introduces financial penalties for breach of conditions attached to a personal premises licence, provided the breach is not a criminal offence as set out in clause 17. These financial penalties are civil penalties and so cannot be issued by the local weights and measures authority. They are level 4 on the standard scale—so, £2,500—and are similar to other offences set out in part 1 of the Bill. This mechanism provides a less severe alternative to criminal prosecution, allowing for enforcement of licence conditions without the need for criminal charges while holding retailers accountable for non-compliance. The maximum fine is important; it is cited quite widely throughout the Bill as a penalty for lawbreaking.

Again, I ask the Minister to look at the consistency of fines across the Bill, which we have discussed a few times, because there is also a variation in comparison with other products. A licence is also required for the sale of alcohol. The maximum fine for supplying alcohol to children is £5,000, which is obviously different from the fine for supplying tobacco or vapes to children.

I would be interested in knowing the reason for the difference between those fines, because it raises the issue of proportionality. Is it worse for a child’s health if they illegally purchase a six pack of beer or if they illegally purchase a pack of cigarettes? That is a question we could spend all day on, but I do not propose to do so. Members of the Committee will be grateful for that, particularly the birthday boy. Neither product is good for children, but it seems somewhat logical to have a lower fine for illegally selling cigarettes than for illegally selling alcohol.

Schedule 2 sets out the financial penalties for breach of retail licensing conditions in England. It sets out the procedure for the local weights and measures authorities when they are imposing financial penalties for breach of licensing conditions, and this schedule is for England only.

Before imposing a financial penalty, the local weights and measures authority must issue a written notice of intent and allow for a period for representations to give the person the opportunity to challenge the proposed financial penalty. If, after the period for representations, the local authority decides to impose a financial penalty, it must give a final written notice.

For clarity, does that notice give notice of the amount of the penalty or just that a penalty will be imposed? Can the retailer appeal to the weights and measures authority about whether they will get a fine, or are they simply told the amount of the fine that they are likely to get? If my hon. Friend does not know, perhaps the Minister might.

I am afraid I do not think the schedule says that, so I do not know the answer. Presumably, the Minister will know the answer—or his civil servants will—and will be able to provide it in his summing up, so I shall move on. Before the notice of intent is given, the final notice can be withdrawn or amended to reduce the penalty amount at any time by written notice. The person has a right to appeal to the magistrates court against the decision to impose a financial penalty or against the amount of the penalty. To go back to the point of my hon. Friend the Member for Farnham and Bordon, there is an opportunity to appeal the amount if one wishes to do so. The schedule will enable an independent decision and establishes the appeals procedure to be followed. If a person fails to pay either the whole or a part of the financial penalty within the given period, the unpaid amount may be recovered as if it were payable under a county court order—so there is pretty stiff insurance that it will get paid. Any proceeds received from financial penalties must be returned to the Consolidated Fund once enforcement costs to investigate an issued penalty have been deducted by the local weights and measures authority. Clause 19 relates to the retail licensing for Wales. As in clause 16, subsection (1) establishes that individuals must hold a personal licence to engage in activities such as selling relevant products. Subsection (2) extends those licensing requirements to ensure that the premises is licensed for activities involving relevant products. In line with clause 16, subsection (3) gives Welsh Ministers, in this case, the authority to create exceptions to the licensing regulations and requirements set out in subsections (1) and (2). Subsection (4) mandates that Welsh Ministers develop the regulations for establishment and operation of personal and premises licences.

I am not clear what sort of exceptions we might be talking about in clauses 16 and 19 being made by Westminster Ministers or Welsh Government Ministers—and I assume there will be a corollary in the other devolved nations when we get to them.

I am not clear about that either, but I am sure the Minister will elucidate what exceptions he sees and when someone or somewhere would be used for selling such products without a licence.

When it comes to alcohol licensing, exceptions for members’ clubs are, of course, already in statute, so we do have exceptions in other licensing regimes. Does the hon. Lady agree that the online sale of vapes, which constitutes a significant market, might also be an exception with regard to brick and mortar premises? The exceptions covered by the Bill might relate to the type of sale and the area of sale.

The hon. Gentleman makes a good point. It is important, however, that those who are selling online and those who are selling in shops have to have a licence to do so. I hope that the Minister does not intend to exempt online retailers from the need to have a licence to sell such products—he is shaking his head, so I suggest that is not the case, which is good. One reason for tabling new clause 10 was to highlight the importance of ensuring that online retailers are held to the same standards as those real-world retailers. We have talked previously about ensuring that online apps and online sales cannot be used as a get-around—similar to vending machines, for example. It is important to ensure that the online world is not used to get around the Government’s intention to prevent smoking and the purchase of smoking, vaping and nicotine products by under-age individuals. To return to clause 19, subsection (5) requires Welsh Ministers to consult with relevant stakeholders before making regulations, which is sensible. Subsection (7) specifies that the regulations are subject to the affirmative resolution procedure, which for Wales means that the proposed regulations must be formally approved by the Senedd before becoming law, increasing democratic accountability and providing an extra layer of scrutiny. Respect for Welsh devolution, as we talked about in the last session, is therefore included within the Bill. Schedule 3 provides for retail licensing schemes in Wales, making provision regarding the granting of a licence in Wales, including provisions meaning that a licensing authority cannot grant a licence to premises in a particular area, for example, in proximity to a school, and limiting the number of licences within a particular area. We heard previously that specifying that licensed premises should not be near a school could cause difficulties in some rural areas where there may be only one shop in that village and no shops for many miles around it. That is one of the reasons decisions are made locally, because the local individuals providing those licences know the local circumstances, and that would need to be done cautiously. The regulations will also specify the duration of the licence, how it is enforced and the appeals process. Clause 20 relates to offences in connection with licences in Wales and sets out how offences are committed, along with the penalties that may be put in place. I will not go through that in any more detail. Clause 21 talks about the financial penalties in Wales. We have talked previously about how it is a matter for the devolved nations to decide how high those penalties should be. Subsection (1) grants the local weights and measures authorities in Wales the powers to impose those financial penalties relating to a breach of conditions attached to a personal or premises licence. Schedule 4 outlines the procedure for local authorities in Wales, such as trading standards, to impose financial penalties for breaching licence conditions. Again, before imposing a penalty, authorities must issue a notice of intent and allow time for it to be challenged. If a penalty is imposed, a final notice is issued, which can be withdrawn or reduced, and the person can appeal the decision or the penalty amount to the magistrates court. Unpaid penalties can be recovered as if they were payable under an order of the county court and proceeds, after enforcement costs, are returned to the Welsh Consolidated Fund. Clause 22 is the repeal of register of retailers of tobacco and nicotine products in Wales. It proposes to repeal chapter 2 in part 3 of the Public Health (Wales) Act 2017, which established a regulatory framework for retailers of tobacco and nicotine products through a centralised registration system. Clearly, if this Bill passes, that provision will no longer be required because the clauses in the Bill provide for new provisions. Clause 22 repeals that chapter of the 2017 Act so that it can be replaced, which is sensible.

I completely understand the practical need to repeal a piece of legislation that is no longer workable under the new Bill, but can my hon. Friend assure me that everything in the previous legislation that is appropriate has been transferred into the current legislation, so that nothing has fallen through the cracks? If she is not an expert in Welsh legislation, perhaps the Minister could help when he responds.

00:00:00

Chapter 2 of part 3 of the Public Health (Wales) Act 2017, which is being repealed by the Bill, establishes a regulatory framework for retailers of tobacco and nicotine products through a centralised registration system. That Act requires the creation and maintenance of a register for all retailers of tobacco, cigarette papers and nicotine products. That register has to include detailed information about each registrant, such as their name, residential or business address, and the location of the premises. It also specifies whether the retailer sells tobacco, nicotine products or both. For mobile and temporary premises, such as stalls, tents or vehicles, the register must record the relevant local authorities where the business operates, if there is more than one. Welsh Ministers may be designated as the authority responsible for overseeing the register, with additional details about registration requirements subject to regulations. To register, businesses must apply to the registration authority and provide comprehensive details about their operations, including the type of products sold and the methods of sale, such as online transactions or delivery services. Applications must comply with a prescribed format and a fee may be required. The authority must grant registration unless legal restrictions, such as restricted premises or sale orders, apply. Approved applications result in updates to the register. Registered retailers are obligated to notify the authority of significant changes, such as modifications to business details, the cessation of operations at specific locations or the discontinuation of mobile operations in a local authority area. Notifications must be submitted within 28 days and the registration authority is responsible for revising the register to reflect the changes or correct any inaccuracies. Before amending or removing a registrant’s entry, the authority must provide notice to explain the reasons and allow time for the registrant to respond. The chapter of the Act that is being repealed includes provisions to enhance the regulation of tobacco and nicotine businesses by ensuring access to the retailers register and enforcing compliance. The registration authority is required to publish a list identifying registered businesses and their premises. For businesses operating from moveable structures, such as stalls or vehicles, the list must specify the local authorities where operations occur, instead of physical addresses. Local authorities are granted full access to information on the register relevant to the premises within their jurisdiction to enable effective monitoring. Certain premises may be exempt from the Act’s provisions, as specified in regulations. The application of the provisions to moveable premises may be modified if deemed necessary by Welsh Ministers. Conducting a tobacco or nicotine business without registration is an offence, as is operating at locations not listed in the register. Exceptions apply to moveable premises, but failing to notify the authority of a change in business operations without reasonable cause also constitutes an offence. Offenders face fines proportional to the severity of the breach. To enforce compliance, local authorities may appoint authorised officers and grant them powers to investigate potential offences. Officers may enter premises at reasonable times, provided that they suspect violations and need access for verification. Entry into dwellings for such a purpose requires a warrant issued by a justice of the peace, which remains valid for 28 days. Warrants may also be granted for other premises under specific conditions, such as denial of access or risk of compromising an investigation. Authorised officers have extensive inspection powers, including examining premises, taking samples and copying documents. They may also secure properties for analysis where necessary. Obstructing officers or failing to co-operate with a reasonable requirement is an offence. Fixed-penalty notices can be issued for minor breaches, offering offenders an opportunity to avoid prosecution through prompt payment. Those measures, in the chapter of the Act that is being repealed, collectively aim to uphold public health standards and ensure the responsible sale of tobacco and nicotine products.

That is very helpful.

Given that is what the Act does, it will be important for the Minister to consider the timing of the repeal. There are comprehensive powers under those provisions, and it will be important to ensure that Welsh Ministers are given ample opportunity and time to put in place new provisions to replace them, before the measures in this Bill come into force. Could the Minister explain when the changeover date is, and whether he has spoken to Welsh Ministers to ensure that there is adequate time for those provisions to be put in place? He might also respond to the question of my hon. Friend the Member for Farnham and Bordon about whether there is any restriction on replacing any aspects of the current Welsh legislation with the new legislation that we are discussing. Clause 85 prohibits retail sales of tobacco products without a licence in Northern Ireland. To apply the measures that we have previously discussed to Northern Ireland, it inserts new measures after section 4 of the Tobacco Retailers Act (Northern Ireland) 2014 that will prohibit the sale of tobacco and nicotine-related products without a licence. That brings Northern Ireland legislation in line with the proposed UK legislation that we have just been discussing. Proposed new section 4A of the 2014 Act introduces a clear prohibition on the retail sale of tobacco and nicotine-related products without appropriate licences. Under this section, individuals are not permitted to engage in the sale, exposure for sale or possession of relevant products unless they hold a personal licence. That licence is required for anyone involved in retail activities such as selling, displaying or possessing tobacco, vaping products, herbal smoking products or nicotine products. The personal licence must be granted by the licensing authority and the individual must comply with the conditions outlined in the licence. The use of premises for activities such as storing relevant products, exposing them for sale or supplying them to customers is prohibited unless a premises licence is obtained. That ensures that the location used for the sale of these products is also licensed and adheres to the prescribed standards. The premises licence is granted by the licensing authority and outlines the specific conditions under which the premises can operate. There is provision for regulations to create exceptions to those prohibitions in certain circumstances. The Department responsible for legislation is required to consult relevant stakeholders before making regulations relating to the granting of personal premises licences, which is of course sensible. Those regulations would ensure that the licensing system remains flexible and adaptable to the needs of businesses and public health objectives. Proposed new section 4B of the 2014 Act establishes the penalties for breaching the new licensing requirements. If a business or individual operates without the necessary personal or premises licence, they commit an offence under that section. In line with England and Wales, providing false and misleading information in an application for a licence is also an offence. If someone knowingly submits incorrect information, they can face legal consequences, with a fine on summary conviction of up to level 5 on the standard scale. The section aims to ensure the integrity of the licensing process by holding individuals and businesses accountable for providing truthful information. The court has the power to order the forfeiture and destruction of relevant products involved in an offence and of any containers used to store them. That gives the court authority to remove illegal products from circulation and deal with them in a manner it deems appropriate, thereby enforcing compliance with the new regulations. Proposed new section 4C of the 2014 Act allows local councils to impose financial penalties on individuals or businesses that breach conditions attached to the personal or premises licences. Those breaches must not constitute a criminal offence under proposed new section 4B, which provides for an offence for lying. If a breach occurs, the council can impose a penalty, with the amount of the fine not exceeding £2,500. That serves as an alternative to criminal prosecution for more minor violations, allowing for a more flexible approach to enforcement. The section also allows for adjustments to the penalty amount to reflect inflation, ensuring that fines remain relevant over time. Schedule 2 to the 2014 Act provides further details on the implementation of those financial penalties and outlines how the penalties will be enforced and collected. That mechanism enables councils to take swift action against minor breaches without resorting to criminal prosecution. Schedule 11 on the retail licensing scheme in Northern Ireland specifies the procedures for granting personal licences, including who may apply and the conditions that must be met for approval. Schedule 12 provides for the financial penalties for breach of retail licence conditions in Northern Ireland. It outlines the process for granting premises licences, with particular attention paid to ensuring that premises used for sale and storage of tobacco products meet the necessary standards for health, safety and law compliance. Any proceeds received from financial penalties in Northern Ireland must be used by the council for the purpose of its functions under the Tobacco Retailers Act (Northern Ireland) 2014 or for other functions that the Department of Health in Northern Ireland may specify by regulation. That is a little different from the rest of the United Kingdom. Schedule 13 sets out consequential amendments to the existing legislation to support the introduction of a new licensing framework. I will not go through those in detail.

In my remarks to date, I have tried to support responsible vaping businesses, which I think are legitimate, and to champion vaping as a smoking cessation tool. These clauses are not in contradiction of that principle. We should support better efforts to regulate the vape market and in particular to stop youth access. Introducing the licensing concept for vapes is consistent with the Government’s intent and the principles that I wish to support. I wish to make some suggestions as to how the licensing regime should best be set up, and I hope that the Minister will talk about his intent in advancing the regulations. The UK responsible vape sector has talked sensibly about licensing. We have the existing framework of the Licensing Act 2003, which covers the sale of alcohol; that is the kind of approach we should take to minimise excessive regulation and make it easy for people to comply. The licensing fee should be set at a rate that is at least cost-neutral to local authorities—I think everyone across the Committee realises how stretched those local authorities are—and it should cover both administrative and enforcement costs. I hope the Minister will comment on that point. On the proximity of licensed premises to certain other locations, I encourage the Minister to try to mirror the alcohol regulations in order to provide a measure of consistency, so that legitimate premises with experience of selling age-related products can do so in the least bureaucratically complicated way. I invite the Minister to consider those points.

I want to build further on the points made by my hon. Friends the Members for Sleaford and North Hykeham and for Windsor. The licensing scheme has been welcomed across the board, which is interesting. One vaping company, Evapo, had some suggestions. I thought it was interesting for it to put those out at this point, because some of the detail is still yet to be decided and it will be done through regulations. It mentions in written evidence that “The licensing scheme should charge retailers £750 per store per year: Licences for over 55,000 convenience and vaping stores could raise upwards of £50 million, more than enough to fund Trading Standards’ enforcement of these new laws. A manageable fee for retailers would incentivise good actor participation, while disincentivising bad actor behaviour. It would also make it more cost effective to follow the law, stymieing rogue traders from shrugging off rare fines to sell illegal, dangerous products to underage people.” I would be interested to hear more from the Minister about what those fines may be.

It is important that retailers who persistently flout the law are appropriately punished and that this acts as a deterrent for others. In his regulations, the Minister may want to consider whether the failure to obey one particular part of the age-restricted product legislation, such as the Tobacco and Vapes Bill, could lead to a loss of licensing for other age-restricted products, whether that be alcohol, fireworks or otherwise.

I welcome my hon. Friend’s comments and I agree. I would be interested to hear what the Minister has to say in this regard. Evapo also says that “the scheme should mandate at least two annual independent mystery shops, paid for out of the licensing scheme.” That would be a good way of ensuring that the legislation is working in practice. I hope that, before the roll-out of the various regulations, there will be a series of detailed consultations on how they are granted, the licence fee, the conditions, the duration, the publication, and the reviews and appeals. That would give us certainty that we are ensuring this legislation works in practice.

12:15:00

My hon. Friend is making an interesting point. What does she think about the idea of having a single licence? If a shop—for example, a small convenience store—is selling alcohol, tobacco, where it is still permitted under the regulation, and vapes for those over 18, would a single regulatory process and licensing scheme be more efficient and more beneficial both to the customer and the retailer?

My hon. Friend makes a valid point. We do not want the introduction of this legislation to lead to any overburdening. We do not want the smaller convenience stores that are trying to operate to be challenged and put out of business. We want this to be a very practical measure so I agree that would be something to look into. I wonder whether the Minister might offer any further thoughts on that.

I thank Members for their contributions. Clauses 16 to 22, clause 85, and schedules 1 to 4 and 11 to 13 establish powers for Ministers in England, Wales and Northern Ireland to introduce a licensing scheme for the retail sale of tobacco, vaping products, nicotine products, cigarette papers and herbal smoking products. There is currently no requirement for a business to obtain a licence to sell these products, which is a major gap in enforcement. This gap is hard to defend since the sale of products such as alcohol does require a licence, while tobacco—the single biggest preventable cause of death, disability and ill health—does not. Vaping and nicotine products also carry, as we have heard, a significant risk of harm and addiction. Introducing a licensing scheme will strengthen enforcement of the law, acting as a deterrent to rogue retailers who breach sales regulations, supporting legitimate businesses and ultimately supporting public health outcomes. Retail licensing is a highly popular intervention, as the shadow Minister helpfully pointed out, because the polling shows that 81% of retailers and 83% of the public are supportive of tobacco retail licensing, and it is one of the most popular tobacco interventions surveyed. Clause 16 establishes that an individual in England is required to hold a personal licence in order to sell tobacco, vaping products or nicotine products, expose those products for sale, and possess products for sale. The clause also establishes that a person must have a premises licence for any premises in England used for the storage, exposure or supply of a relevant product to a retail customer. The clause provides for a discretionary power for the Secretary of State to make exceptions by regulations to the requirements for a personal or premises licence. This will enable regulations to appropriately account for all possible types of retail. The Secretary of State in England must, by regulations, make provisions for how licences are to be granted and must conduct a consultation before regulations are introduced. The scheme will be commenced by regulations. I hope that in part answers the question posed by the hon. Member for Farnham and Bordon, because we want to ensure that the licensing regime is fit for purpose not just for bricks and mortar businesses, but for online business.

Will the Minister address under which part of the legislation regulations will be made in Scotland?

I will come to Scotland in due course. Schedule 1 establishes the framework for the regulations. It establishes that the licensing authority will be the local authority, and defines the relevant types of local authority that regulations could establish as the licensing authority. In answer to the shadow Minister’s question, given that there is likely to be local government reorganisation in the future, it will be, and will remain, the responsibility of the outgoing local authority that is the licensing authority to continue the licensing function up to the date that the new local authority comes in, out of a shadow form. The usual practice in local government reorganisation is that a shadow local authority is in place for a year in advance. It sorts out restructuring and necessary background work, with local members who were elected to the shadow authority becoming the members of the new local authority on the commencement date. That was true of the Local Government Acts in 1972 and 1996, and it has been true of local government reorganisations since. I have no reason to believe it will not be true of the next set of local government reorganisations. For a period of time, the outgoing local authority will be the licensing authority because it is the local authority until the date that it moves to new arrangements. From day one of the new arrangements, the new authority will be the licensing authority.

Some areas have a unitary authority, some have a unitary authority and a mayor, and some have restricted county councils. As local reorganisation occurs, how will the tier of local authority that has the competency and duties under this legislation be defined?

Where we know an area is moving from a two-tier to a unitary authority, the clue is in the name: the unitary authority will be the licensing authority because there will be only one local authority covering that area.

I am sure the Minister has much greater understanding of his own Government’s policy, but my understanding is that there will be some devolution of powers to parish and town councils. Will they potentially become the licensing authority when there is a downward devolution of power?

No. The local authority, not the parish council, would be and will remain the licensing authority, as is the case at the present time. Notwithstanding that there may be a quasi-additional tier in the form of a mayor and a combined authority, where areas move from a two-tier to a unitary authority, it will be the local authority that is the licensing authority. That is what happens in my constituency in Greater Manchester, where we have effectively had unitary authorities since the metropolitan county council was abolished in 1986. Tameside metropolitan borough council and Manchester city council are both unitary authorities. They are both the licensing authorities for their respective parts of my constituency, even though we have a Greater Manchester combined authority and a Great Manchester metro mayor. I hope that clarifies the issue. Schedule 1 also establishes that regulations may make provisions regarding the granting, duration, renewal and revocation of licences, and enables the licensing authority to charge a fee for the granting of a licence. In response to the point raised by the hon. Member for Windsor, the fee structure may be set at a level that takes into account administration and enforcement costs. The local authority will be able to use the fee to help cover the cost of granting licences and enforcing the scheme. That is the closest I can get: we intend it to be cost-neutral for the purpose of operating the scheme. Schedule 1 establishes that regulations can place conditions on the licence. Retailers that breach those conditions will be subject to civil financial penalties. Regulations may make provision for licensing authorities to publish information about licences, such as the addresses of licensed retailers, and, to maintain fairness, regulations must include an appeals route, so that retailers can, for example, appeal decisions on the granting of a licence. Finally, regulations may require that a licensing authority must consider guidance published by the Secretary of State to support the smooth implementation of the scheme. Clause 19 and schedule 3 establish the same power to introduce a licensing scheme in Wales, with the same framework for the regulations. The schedule establishes the licensing authority in Wales to be the council of the county or county borough. Clause 85 achieves the same in Northern Ireland by inserting a new clause into the Tobacco Retailers Act (Northern Ireland) 2014, while schedule 11 establishes the same framework. In Northern Ireland, a council will be the licensing authority. Clause 17 creates offences in relation to the licensing scheme in England. It makes it an offence to sell, expose for sale, or possess for the purpose of sale any relevant products without, or not in accordance with, a personal licence. The clause also makes it an offence to use a premises in England for the storage of relevant product for the purpose of retail sale, the exposure for sale, or the supply of any relevant product to a retail customer without, or not in accordance with, a premises licence, and knowingly to provide materially false or misleading information in a licence application. Anyone found to be committing a licensing offence may be issued with an unlimited fine on conviction. As an alternative to prosecution, trading standards may issue a £2,500 fixed penalty notice, which is an on-the-spot fine. Regulations can confer on courts a discretionary power to suspend or revoke a licence on conviction. The court may order relevant product to be forfeited and destroyed, to prevent a business from continuing to sell or unlawfully selling product. Clause 20 establishes the same licensing offences in Wales, and clause 85 establishes the same licensing offences in Northern Ireland. In Northern Ireland, district councils will enforce the licensing scheme. People convicted of a licensing offence face a fine of up to £5,000. As an alternative to prosecution, councils in Northern Ireland can issue a fixed penalty notice, the value for which will be determined in regulations. Clause 18 creates civil financial penalties for breaches of licence conditions in England, to ensure that licensed retailers continue to follow the rules. Breaching conditions is a civil matter, not dealt with by the courts. The value of the civil financial penalty cannot exceed £2,500. The clause also provides a limited and specific power to update that value to account for inflation, to ensure that the value remains relevant. A civil penalty cannot be issued if the breach of the licence condition already constitutes a licensing offence. That is to ensure that someone cannot be subject to double punishment for the same licence breach.

The power to increase the fine is in line with inflation, but if evidence over time showed the Minister that the fine was not adequate to deter the offence from taking place, the Government might wish to raise it by more than inflation, to provide a greater deterrent. Would it be wise to make the power more flexible?

As I have said during previous outings in the course of this Committee, the Bill merely rolls over the existing fines. We would need to do a much more complex piece of work to uprate the fines beyond the current values, plus inflation. That is not what the Bill seeks to do; we do not want to overcomplicate it.

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I hope to reassure the shadow Minister that if there are criminal charges, although not in the case of a civil penalty, there is no maximum fine. The courts can determine a fine that is entirely appropriate, and certainly above the £2,500 limit, in a serious case. I am quite content to leave it to the court to determine whether the case is so serious that it merits either a custodial sentence, in the most extreme cases, or an unlimited fine—indeed, there is the possibility for both those things. I hope that covers some of the hon. Lady’s concerns.

Schedule 2 sets out the procedure for imposing financial penalties on retailers for breaches of licence conditions in England. Trading standards may recover unpaid penalties from retailers who fail to pay the full amount of their penalty. To support enforcement, it can deduct the cost of issuing the penalty before it must return the rest of the proceeds collected to the consolidated fund.

Clause 21 creates the same civil financial penalties for breaches of licence conditions in Wales, and schedule 4 sets out the same process for issuing such penalties in Wales. Clause 85 creates the same civil financial penalties in Northern Ireland, and schedule 12 sets out the same process for issuing such penalties in Northern Ireland. The schedule establishes that any value of penalties collected by councils in Northern Ireland may be used to support tobacco and vape enforcement. The Department of Health in Northern Ireland may require that councils must supply information relating to use of the collected penalties. That approach aligns with the existing approach for use of proceeds from fixed penalty notices in Northern Ireland.

There are also clauses and schedules specific to Wales and Northern Ireland, given differences in existing powers and enforcement regimes. Clause 22 repeals the existing power that Welsh Ministers have to introduce a retailer register in Wales, which has not yet been exercised. The power is repealed when the licensing scheme provisions in this Bill come into force. That is because the new licensing scheme will supersede this power, so it is unnecessary to have both.

Schedule 13 includes consequential amendments for Northern Ireland. It amends the Tobacco and Retailers Act (Northern Ireland) 2014 so that the existing tobacco retailer register in Northern Ireland is removed. That means that once the licensing regulations are introduced in Northern Ireland, they replace the retailer register, as it is unnecessary to have both. The schedule also updates the 2014 Act so that the new licensing offences are included in the list of relevant offences for a restricted premises or sale order. That means that licensing offences in Northern Ireland will be considered when district councils determine whether someone should be issued with a restricted premises or sale order, preventing them from selling the relevant product for a set amount of time as a consequence of repeat tobacco and vape offences.

The hon. Member for Sleaford and North Hykeham asked me about Scotland. I was passed a note, but I seem to have shuffled it away. The simple answer is that Scotland already has its own scheme up and running, which it considers to be successful, and it does not wish to change it. We respect the devolution settlement, so we do not seek to make changes to the scheme in Scotland.

Clause 23

Restricted premises orders

Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss clauses 24 to 27 stand part. Question put and agreed to. Clause 23 accordingly ordered to stand part of the Bill.

No, it is too late; I am sorry. Members have to understand that if they wish to make a contribution, they must make that clear by standing up; otherwise, I push forward. It is too late. The clause is debated.

Sorry, Sir Roger. We had wanted to adjourn at clause 22.

But we have just agreed clause 23. It is done. Whether you like it or not, the Committee has said yes to clause 23, so it stands part of the Bill. We cannot go back; there is no retrospective route in Committee. If Members wish to debate clauses 24 to 27, which technically have not been moved, they may do so, but they cannot debate clause 23.

Hang on, not now! This is like trying to herd kittens. When you come back this afternoon, you may, if the Chairman chooses to allow you—you will be pleased to know it will not be me—speak to clauses 24 to 27, before you vote on those. But you cannot go back over clause 23. Ordered, That further consideration be now adjourned.—(Taiwo Owatemi.)

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