Vaping bans could cost the UK economy £2.8bn and 18,000 jobs

The disposable vape ban could jeopardise £2.8bn in economic contributions and 18,000 jobs, online vape shop Evapo has revealed.

Its latest analysis, supported by the Centre for Economics and Business Research, explores the potential impacts such bans could have on the UK economy.

The analysis found that in 2021, the vaping industry contributed £1.325bn in direct turnover, which more than doubles to £2.8bn when accounting for the wider economic impacts through supply chains and consumer spending by employees within the sector.

Additionally, the industry generated £310 million in tax revenue in 2021, further highlighting its significance to the UK economy.

The vaping industry supports approximately 18,000 full-time equivalent jobs across various sectors, including manufacturing, distribution, and retail.

Evapo emphasised that these jobs are critical not only for the individuals employed but also for the broader economic stability of communities where these businesses operate.

The Association of Convenience Stores also warned that even a ban limited to disposable vapes could result in a substantial rise in illicit trade, potentially boosting the illicit market by £645m. 

The online vape shop explained that this not only undermines legal businesses but also exposes consumers to unregulated and potentially dangerous products, presenting significant health risks.

“The financial burden on the NHS could increase due to the treatment of health issues arising from the use of these unsafe products,” it added.

Moreover, the analysis found that banning disposable vapes could also unintentionally create an additional barrier for smokers trying to quit, potentially leading to higher costs for the NHS. Currently, smoking costs the NHS around £1.9bn annually.

Andrej Kuttruf chief executive of Evapo commented on the findings: “In light of the proposed disposable vape ban set for April 2025, we face a critical juncture for the vaping industry and the UK economy.

“The vaping sector has evolved into a significant economic pillar, supporting thousands of jobs and generating substantial tax revenue. Removing disposable vapes from the market could inadvertently hinder smokers’ efforts to quit, escalate NHS costs, and drive consumers towards unsafe, illicit products. We urge policymakers to consider these economic and health ramifications carefully.”