A licensing scheme for the sale of tobacco, nicotine, herbal smoking, and vaping products, as well as cigarette papers is likely to come into force in 2027. Robert Botkai, senior partner at Winckworth Sherwood, looks at the detail of how this might work.
The government introduced the Tobacco and Vapes Bill (“the Bill”) on November 5 2024, and it is currently passing through the parliamentary process.
The Bill sets out several measures, including preventing anyone born on or after 1 January 2009 from legally being sold certain tobacco products. It also prohibits the sale of vaping and nicotine products to those under 18.
The Bill proposes a licensing regime for the sale of tobacco products, herbal smoking products, cigarette papers, vaping products, and nicotine products (the “Relevant Products”). Given that the provisions governing the tobacco licensing regime have recently been scrutinised by a public bill committee, we will be setting out what this licensing scheme could potentially look like and the practical implications for petrol retailers.
Readers should note that the Bill is yet to become law, so there is always the possibility that it does not pass through the parliamentary process, or the Bill in its current form may be amended.
Personal and premises licences
The proposed tobacco licensing regime looks to mirror the alcohol licensing scheme, borrowing the concept of “personal” and “premises” licences. Relevant Products will only be able to be sold under the authority of and in accordance with a premises licence, which must name a designated person who must be a personal licence holder.
Disappointingly, it appears that the government intends the tobacco licensing scheme to be standalone. This means that any business wishing to sell Relevant Products will need to apply for a premises licence for each of its stores, and its people must apply for personal licences. These will be distinct from premises and personal licences that authorise the sale of alcohol.
Grant of a licence
Regulations are expected to prohibit the grant of premises licences within a particular area. It has been indicated that this prohibition may apply to premises within close proximity to schools or areas where authorities are looking to reduce the number of tobacco licensed premises. The outcome may be that some businesses currently selling Relevant Products may be refused premises licences.
Licensing objectives
Readers will be aware that to obtain an alcohol premises licence an operating schedule must be produced setting out steps that will be taken by the applicant to comply with the four licensing objectives being the prevention of crime and disorder, the prevention of public nuisance, public safety and the protection of children from harm. There is no suggestion that such objectives will apply to applications to sell Relevant Products and so at this stage it is difficult to see what criteria will be applied to determining applications.
Licence fee
Licensing authorities will charge a fee for granting and varying premises licences and we can expect an annual maintenance fee. It is not clear if the fees charged will be linked to the rateable value of properties, as with the alcohol licensing regime.
Duration of licences
Future regulations will set out the duration of licences. We expect personal and premises licences to be indefinite (subject to certain exceptions), mirroring the alcohol licensing scheme.
Penalties
Committing offences such as selling Relevant Products in contravention of the age restrictions, twice within a two-year period, may attract the following sanctions:
- Restricted Premises Order – Relevant Products will be prohibited from being sold from the premises in question for up to a year, and the order will be registered as a local land charge, binding future purchasers.
- Restricted Sales Order – A person, in their individual capacity, will be prohibited from selling Relevant Products or from managing premises where these items are sold for up to a year.
There will be a maximum £2,500 penalty for breaching licence conditions. Local authorities will have the authority to issue £200 fixed penalty notices in respect of other offences committed.
Conclusion
The licensing scheme is likely to come into force in 2027, so we will be watching the progress of the Bill and updating Forecourt Trader readers in the coming months. The prospect of a licensing regime for tobacco and vapes has huge implications for the trade, and at this time we have more questions than answers. Let us hope that regulations will be published, allowing good time for any necessary applications so that the chaos of 2005 (remember the transition from justices’ licences to premises licences) is not repeated!
Robert Botkai is senior partner and head of Commercial Real Estate and Licensing at Winckworth Sherwood LLP.
This column is from legal practitioners Winckworth Sherwood LLP. Neither of Winckworth Sherwood or Forecourt Trader shall be liable for any decision or action taken on the basis of it. Nothing in this column constitutes legal advice or gives rise to a solicitor/client relationship. Specialist legal advice should be taken in relation to specific circumstances.