The vaping industry has criticised government plans to review business rates relief for vape shops, arguing the move unfairly targets responsible retailers while rewarding businesses selling alcohol.
The backlash follows prime minister Andy Burnham's announcement that pubs, clubs and live music venues in England will receive a further 20 per cent reduction in business rates from April 2027, on top of the 15 per cent relief already announced.
The government said the £100 million-a-year package, benefiting nearly 32,000 venues, would be fully funded, including through a review of reliefs for businesses “that do not make a positive contribution to local communities, such as vape shops.”
The UK Vaping Industry Association (UKVIA) said the proposal risked damaging legitimate retailers that help smokers quit.
John Dunne, director general of the UKVIA, accused the government of “demonising” an entire sector.
“This is a deeply misguided and potentially damaging attack on an entire sector,” he said.
“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.”
Dunne said specialist vape shops provide advice and practical support to smokers switching to “a far less harmful way of consuming nicotine” and argued it was wrong to portray them as anti-social businesses.
He also warned that responsible retailers were already preparing for the introduction of the Vaping Products Duty in October, which will add £2.20 to the cost of every 10ml bottle of e-liquid.
“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,” he said.
The UKVIA reiterated its support for tougher action against retailers selling vapes to children or stocking illegal products, but said ministers should distinguish between compliant specialist retailers and rogue traders.
The association called on the government to withdraw its description of vape shops as anti-social businesses, fast-track the introduction of a national vape retail licensing scheme under the Tobacco and Vapes Act, retain business rates relief for licensed retailers and strengthen enforcement against illegal products and underage sales.
The Independent British Vape Trade Association (IBVTA) also questioned the government's approach.
While welcoming plans to consult on ensuring online marketplaces meet their VAT obligations, the association said responsible vape businesses had been surprised to see helping adults quit smoking characterised as “anti-social”.
“It has come as a surprise to responsible dedicated vape businesses across the country today that helping adults quit their smoking habit might be seen as 'anti-social',” the IBVTA said in a statement.
The association added that many specialist vape retailers support NHS and local authority stop smoking programmes and argued that responsible businesses were already facing multiple regulatory pressures, including the upcoming vaping products duty, a proposed licensing scheme and further restrictions on products and in-store displays.
“It is difficult to understand how growth in every postcode might be achieved by yet another financial blow to the responsible businesses whose purpose is to help more of the UK's 5.3 million adult smokers find cheaper and less harmful products,” it said.