Rachel Reeves is considering increasing tax on vaping products in her budget this month as figures show a quarter of 11 to 15-year-olds in England have used e-cigarettes.
The chancellor is considering raising taxes after a consultation with the last Conservative government.
In his March budget, Jeremy Hunt announced a tax on vaping products, due to come into force in October 2026, in a bid to make vaping unaffordable for children.
NHS figures revealed on Thursday that one in four children aged 11 to 15 in England tried vaping in 2023 – up from 22% two years earlier – with almost one in 10 (9%) regularly using e-cigarettes. By comparison, 11% said they had tried cigarettes.
Matt Fagg, director of prevention and long-term conditions at NHS England, said the statistics were “incredibly worrying. It means they are at risk of becoming addicted to one of the most addictive drugs in the world, not to mention the longer-term consequences, which are still unclear.”
Health Minister Andrew Gwynne also said the figures were worrying. “The health advice is clear that children and adult non-smokers should never vape, so it is unacceptable that unscrupulous retailers are marketing these products to children,” he said.
An increase in taxes on vaping products would likely go hand in hand with an increase in tobacco taxes, so as not to encourage people to switch to smoking.
The move could generate hundreds of millions of pounds for the exchequer. The vape tax, as designed by Hunt, will raise £120 million between 2026 and 2027, rising to £445 million by 2028-2029, according to estimates from the charity Action on Smoking and Health (ASH).
Officials are also exploring the prospect of reshaping the tax by making it a flat levy rather than one that varies depending on the nicotine strength of the product. Experts have warned that taxing high-strength products could further deter smokers from switching to vaping.
A public health source said the industry had expected the tobacco and vaping bill to be tabled early this month, and the delay could signal changes to the budget are being announced.
“The only demand from the public health sector is that if the tax on vaping is increased, the same is done for tobacco, thus maintaining the difference and therefore the incentive to switch away from tobacco,” the source said.
If confirmed, the change would be part of the government’s wider public health policy. Other measures announced include a ban on junk food advertising before the 9pm watershed and a ban on children buying energy drinks with high caffeine content.
Chris Thomas, a research fellow at the Institute for Public Policy Research, said: “It is right that the government is considering new taxes aimed at discouraging or punishing industries and products that harm health, while raising revenue to creating healthcare investments.
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“We estimate that health levies on alcohol, tobacco, vaping, junk food and gambling could raise as much as £10 billion by the end of the decade.
“A tax on e-cigarettes must strike a balance between their use as a smoking cessation tool and their current disproportionate appeal to children. However, there are signs that the e-cigarette market will manage to bypass the ban on disposables – and maintain the presence of colorful vapors at pocket money prices.
“This gives the government scope to consider a higher level of vaping duties than proposed by the previous government – ensuring that vapes become more difficult to access for children, but are still accessible to adults who would benefit from them to have.”
Hazel Cheeseman, chief executive of the charity Action on Smoking and Health, said: “We oppose higher tax rates on stronger nicotine liquids precisely because they are a smoking cessation tool and higher prices can deter smokers who need high-strength products. fuses. A fixed rate would be welcome.”
More than 40 countries have introduced taxes on vaping products. A Treasury spokesman said: “We do not comment on speculation around tax changes outside of budget events.”