Tobacco duty increase hits law-abiding consumers who use British shops

Forest's response to the increase in tobacco duty announced today by the Chancellor:

INCREASE IN TOBACCO DUTY PENALISES LAW-ABIDING CONSUMERS, SAYS FOREST

The smokers' lobby group Forest has criticised the Chancellor’s decision to increase tobacco duty by two per cent above inflation, arguing that it penalises "law-abiding consumers".

Director Simon Clark said: "Law-abiding consumers who buy their tobacco in British shops are being penalised unfairly.

"The policy also discriminates against those who can least afford it, especially the elderly and the low paid.

"Increasing tobacco duty could cost the government billions of pounds. The people who will benefit most are black marketeers and those who purchase their tobacco abroad."

He added: "The Chancellor said the government's policy on tobacco will reduce smoking. It's not the government's role to force people to stop consuming a legal product. That's social engineering, which we deplore."

Update: Expect an increase of 33-50p on a pack of 20 cigarettes, and around 67p on a 25g pack of hand rolling tobacco.

Update on Wednesday, March 23, 2011 at 14:18 by Simon Clark

What the Chancellor announced today:

• Tobacco duty rates – as announced in the March Budget 2010, tobacco duty rates will increase by 2 per cent above the RPI. Duty on hand rolling tobacco will increase by an additional 10 per cent. These changes will come into effect from 6pm on 23 March 2011. (Finance Bill 2011)

• Changes to the tobacco duty regime – the Government is also restructuring cigarette duty to support health objectives. As a result, ad valorem duty on cigarettes will decrease to 16.5 per cent, and specific duty will increase by 25 per cent above the RPI. This will target the duty increase on cheaper cigarettes, adding 50 pence to a packet of economy cigarettes and 33 pence to a packet of premium cigarettes. These changes will come into effect from 6pm on 23 March 2011. (Finance Bill 2011)

• Tobacco: tackling fraud – The Government is fully committed to tackling the illicit trade in tobacco to protect public finances and support health objectives. HMRC and the UK Border Agency will be introducing a renewed strategy to tackle this fraud from April 2011.

The Tobacco Manufacturers Association reports that "According to latest data available from HM Revenue & Customs, up to 22% of cigarettes and 61% of handrolling tobacco consumed in 2008/09 avoided UK duty. This equates to a revenue loss to the Treasury of £3.8 billion (£10.4 million per day)."

Update on Wednesday, March 23, 2011 at 16:45 by Simon Clark

Media coverage:

Forest: Budget penalises law-abiding smokers (Politics.co.uk)
Cheap cigarettes prompt duty change (Independent/PA)
Cost of cigarettes and alcohol to increase tonight (Daily Mail)
Tobacco duty rise 'a boon to black marketeers' (The Grocer)
Budget 2011: £7 pack of cigarettes (Daily Telegraph)
Booze and fags hit by George Osborne (Daily Mirror)
It's hurting and it's still not working (Daily Record)

Bad memories of Budget Day

As a small child I hated Budget Day.

I'd cycle home from school, turn on the television, only to find that all the children's programmes had been moved to BBC2 to accommodate some tedious, long-winded analysis of the Chancellor's statement on BBC1. For a six or seven-year-old it was perhaps the most boring thing I had ever heard.

The problem was, on our old black and white TV we didn't get BBC2. And we didn't watch ITV. In fact, I can't remember ever watching ITV as a small child. I don't think it was snobbishness on my family's part. I just think we got better reception on BBC1 and anyway it was too much hassle getting up to retune the television using the little plastic dial on the front of the set.

So BBC1 it was until my father bought a new (colour) television in 1971. Finally we had BBC2, and I think we even watched the occasional programme on ITV.

But that explains why, to this day, the Budget still leaves me cold.

PS. Wearing my professional (ie Forest) hat I shall however be monitoring the Budget to comment upon the anticipated rise in tobacco duty. Watch this space.

Wheel of misfortune

Is it me or am I unlucky?

Drove to London last night to see Squeeze and The Feeling - one of this week's Teenage Cancer Trust concerts - and on my way to the Royal Albert Hall I got a puncture. Again.

Tried to change the wheel myself but we were on a slope (the sliproad at junction 5 of the M1 near Watford) and the car kept rolling off the jack. My hands - and trousers - were filthy.

Called the AA. Owing to our "vulnerable situation" we were given priority status and the patrolman arrived after 45 minutes.

Thankfully, it wasn't just me. There was a problem with the jack, which twisted and collapsed when the car reached a certain height, but he eventually changed the wheel and we continued our journey.

Rest of the evening can be summed up as follows: missed all but the last ten minutes of The Feeling, saw Squeeze, then limped home (on a speed restricted space-saver tyre) shortly before 1.00am.

Excuse me if I have a nap after the Budget this afternoon.

Welcome to the Liberty League

When we launched The Free Society in 2008 the plan was to show how the war on tobacco is just one example of excessive interference by Big Government in people's daily lives.

With smoking banned in all public places in the UK, we were concerned that non-smokers might lose interest in the subject and we would lose support, even from the ranks of tolerant non-smokers some of whom, let's be honest, quite like smoke free pubs and bars.

We had to demonstrate that tobacco is one of many lifestyle issues under attack and that, ultimately, the argument goes far beyond smoking. It's about individual freedom, personal responsibility, mutual consideration and much more.

We wanted to link to other liberal or libertarian-minded groups and create a loose coalition that might recreate the "swarm effect" that Deborah Arnott, director of ASH, wrote about in her infamous Guardian article Smoke and mirrors.

That same year, in partnership with The Freedom Association, we launched The Freedom Zone at the Conservative party conference, co-hosting events with the likes of the Manifesto Club and Progressive Vision, and last year we launched a series of debates in London, Voices of Freedom: The Battle Against Big Government.

Each debate was organised and co-hosted by The Free Society in association with one of the following groups: Institute of Economic Affairs, Adam Smith Institute, Big Brother Watch, Manifesto Club and Liberal Vision.

The concept appears to have taken off. The Freedom Zone has become a fixture at the Conservative conference, the 2011 Voices of Freedom debates will be announced shortly, and I am delighted to report that the pro-liberty movement has a new ally.

Co-founder Anton Howes, a student at King’s College London and a member of the ASI's Next Generation Group, writes:

The Liberty League is a network for libertarian and classical liberal groups. It acts as a one-stop-shop for anyone wanting to get involved in the movement, helping to train and expand libertarian societies, maintaining a comprehensive list of all pro-freedom events in the UK, and channelling support to activists from campaigns and think-tanks.

It has opened applications for its inaugural Freedom Forum conference on April 1-3 at the Birmingham and Midland Institute.

For £20 (and a £10 deposit to be refunded on registration) accommodation, meals, free books and videos will all be provided. This is the perfect chance to meet other young pro-liberty activists from all over the UK, as well as taking part in seminars, meeting the libertarian movement's best speakers, and learning from activist training workshops.

Speakers from the Adam Smith Institute, Institute of Economic Affairs, Institute of Ideas, The Freedom Association, Big Brother Watch, some MPs and of course The Free Society's very own Simon Clark are confirmed.

Make sure you apply straight away, as space is limited and places are disappearing quickly.

I will be taking part in a panel discussion on 'Tobacco, Alcohol and Other Drugs'. I can report too that The Free Society has joined the Liberty League network.

To put this development in perspective, until a few years ago Forest fought a fairly lonely battle when it came to defending the sale and consumption of tobacco. Now a significant number of groups and individuals (including Clare Fox and David Bowden at the Institute of Ideas) are prepared to take a stand on the issue, and the wider implications.

In addition to Forest and The Free Society, they include the Institute of Economic Affairs, Adam Smith Institute, The Freedom Association, TaxPayers' Alliance, Big Brother Watch, Manifesto Club, Democracy Institute, Progressive Vision, Liberal Vision, Nurses for Reform, Economic Policy Centre and the Centre for Policy Studies.

Not a bad coalition, if you ask me. And it's getting larger all the time.

Scotland's smoking ban five years on

The Scotsman has published a feature entitled 'Five years of the smoking ban'.

The article includes comments from me, Paul Waterson of the Scottish Licensed Trade Association, Phil Hanlon and Jill Pell, professors of public health at Glasgow University, and Sheila Duffy, chief executive of ASH Scotland.

It also features several case studies including a publican, Lynn Adams, who "has seen her business decline since the smoking ban came in", and a smoker, Dr Stuart Waiton.

See: Five years of the smoking ban

Thank God for Guinness

Returned late last night from our weekend in Dublin.

The least said about the rugby on Saturday the better. It was all going so well - for the first 30 seconds. After that - well, we were in the third row of the upper tier behind one end so we got a perfect view of the carnage that followed.

Yesterday we spent the afternoon at Croke Park, home of the GAA (Gaelic Athletic Association) where Dublin were playing Mayo.

Having enjoyed a week's holiday in Westport, Co Mayo, several years ago - and seen Mayo play Fermanagh in an All-Ireland semi-final at Croke Park in 2004 - we supported the visitors.

Dublin won. Naturally.

Before the match my son bought a hurling stick. The taxi driver who drove us to the airport after the match was visibly impressed. Not so airport security. They confiscated it as an "offensive weapon".

"Do we look like we're going to club someone to death?" I protested, but to no avail.

It was one of those weekends.

Thank God for Guinness.

Interrogated by the Morning Star - and I survived to tell the tale

Had a long conversation this afternoon with Rory MacKinnon, a reporter for the Morning Star.

He's working on a piece about the response to the Government's tobacco control plan and wanted answers to the following questions (which he kindly emailed in advance):

1. I understand you told a select committee in 2000 that Forest received around £250,000pa in funding from the TMA. Is this figure still accurate?

2. You also confirmed that this represented around 96% of Forest's operating budget. Is this also still accurate?

3. You have said in both your testimony to the select committee and on Forest's website that it was "not set up by the industry, but independently by this chap, Christopher Foxley-Norris, and a few of his pals." Can you confirm that neither the TMA nor its predecessor the Tobacco Advisory Council were behind its creation? If not, why do you maintain that Forest is an independent organisation?"

4. I've read several interviews and columns in which you've said there is no evidence for a tobacco display ban reducing the number of young smokers. How do you reconcile this with the importance the tobacco industry itself places on branding and visibility?

I won't repeat my replies to these and other searching questions. Suffice it to say I'm not expecting a ringing endorsement of Forest or our role in the war on tobacco!

Ryanair - you're having a laugh

Tomorrow morning I am catching a flight, with my son, to Dublin to see England's Grand Slam match against Ireland.

I was rather lucky to get tickets. A friend of mine lives in Ireland and he just happens to know someone very close to the Irish rugby team and this person very kindly offered my friend tickets and he, even more kindly, gave them to me.

Anyway, I booked our Ryanair flights a few weeks ago and last night I was just about to print our boarding passes when I noticed that my booking had been registered in the name of 'Simon Philip' instead of 'Simon Clark' (Philip being my middle name).

I don't know how it happened. I have booked so many flights with Ryanair recently that I probably wasn't paying attention when I completed the online booking form. (Personally, I blame my 'smart' computer.)

To avoid any problem I thought I'd better change it before I arrive at Stansted tomorrow with a passport and boarding pass in different names. So I clicked on 'Manage Account', found the appropriate section, and changed the passenger name from 'Simon Philip' to 'Simon Clark'.

And you know what? Ryanair charged me £100 to do it!!!

I know, I know, Ryanair are famous for their additional costs. Well, I don't mind paying for extras like a gin and tonic, or even priority boarding (I love priority boarding!). But £100 to change my name?

They're having a laugh.

Update on Friday, March 18, 2011 at 9:45 by Simon Clark

The Six Nations rugby kicks off at 5.00pm at the new Aviva Stadium. On Sunday we're planning to see Dublin v Mayo in the GAA Football League at Croke Park, Ireland's other national stadium.

The story of Croke Park, including the infamous Croke Park Massacre in 1920, is a fascinating one. I've been there once before, a few years ago when there was a capacity crowd of 80,000, and it was a wonderful experience.

I'm not sure that Dublin needs two large stadiums. Given Croke Park's history there was something wonderfully symbolic about Gaelic and 'English' games being played in the same arena while Lansdowne Road was being redeveloped.

Some people thought it would never happen but it did, and it was a great success. Practical too. The Aviva holds just 50,000. The black market will be busy tomorrow.