Chancellor Rachel Reeves is expected to announce that Border Force and HMRC are to be armed with sweeping new powers to seize illegal vapes on the spot with rogue traders that flout the rules facing £10,000 fines and a potential prison sentence at the upcoming Budget, as part of plans to protect Britain’s high streets.
The coordinated crackdown will tackle illegal vapes on the high street and the border and will be backed by mandatory licensing, on-the-spot fines, more rigorous right-to-work checks and tougher action on tax evasion and rogue directors - helping to protect legitimate businesses and stop scammers that are ruining our high streets.
All vapes sold in the UK will have to carry a cutting-edge digital duty stamp, including QR code making it easy for consumers and enforcement officers to quickly scan and spot a fake.
Tough penalties of up to £10,000 and new criminal offences that could resulting in jail time will apply to businesses who refuse to play by the rules, will disrupt criminal networks behind black market vapes – protecting the public from dangerous, unregulated products and leaving fraudsters fewer places to hide.
Under expected plans, businesses manufacturing vaping liquid in the UK will be able to register for the scheme from April 2026, with HMRC providing full support and transitional stamps to help the sector prepare before the scheme becomes compulsory in October 2026. Shops will have a six month grace period to sell any unstamped stock.
UK manufacturers have welcomed the expected measures as essential to tackle the flood of illegal vapes undercutting compliant British businesses and to ensure a level playing field for those who play by the rules.
Gillian Golden, chief executive of the Independent British Vape Trade Association (IBVTA) said, "We applaud the announcement of a concerted effort to stamp out rogue trading in vapes. Illegal products and illicit traders have been a scourge on our high streets in recent years.
"This unfair competition for the legitimate vape trade has also caused reputational damage to the UK’s most popular and effective aid to quitting smoking. Criminal networks, who see illicit tobacco and vapes as any other cash market commodity, conduct much of this illegal trade.
"The IBVTA will continue working constructively with HMRC to make sure the industry is ready for the new vape duty next year. We also welcome more cross agency working, as seen recently with Operation Machinize.
"In tandem with the new vape duty, the licensing of vape retailers as proposed in the Tobacco and Vapes Bill could have benefits for the sector with the right structure and enforcement. However, it will take time and careful consideration to design a licensing scheme can achieve those aims."
Dan Marchant, director of Vape Club and founding member of the UKVIA, noted that the “irresponsible sale” of illegal and non-compliant products has done “enormous damage” to the reputation of an industry that exists to help adult smokers move away from cigarettes.
“When I talk about the vaping industry, I’m talking about vape specialists and the legitimate retail side of things - not market stalls and ‘candy shops’ that happen to stock these products,” he added.
“We mean the manufacturers, brands, and distributors who have spent years investing in compliance, staff training, and responsible retailing. That distinction is vital because the responsible side of the industry has consistently pushed for better regulation and stronger enforcement.”
Marchant urged the government to take a serious look at the UKVIA’s proposal for a new and more effective retail and distributor licensing framework, which would generate the funds needed for proactive enforcement of the regulations, without costing the taxpayer a single penny.
“The government now has an opportunity to back up its words with proper funding for Trading Standards and local authorities, giving them the tools to shut down rogue traders for good,” he said. “Legitimate vape retailers are ready and willing to work with policymakers to create a framework that protects young people, supports public health, and continues to aid adults trying to quit smoking.”