T
he UK’s largest tobacco corporations noticed nearly £1 billion wiped off their shares as they warned that the Government plan to lift the authorized age for purchasing tobacco “threatens significant unintended consequences”.
Prime Minister Rishi Sunak advised the Conservative Party convention that he plans to introduce a brand new legislation banning tobacco gross sales to anyone born on or after January 1 2009.
He additionally pledged to crack down on the sale of disposable vapes to youngsters.
In the speech in Manchester, Mr Sunak mentioned that “a 14-year-old today will never legally be sold a cigarette”, below new laws for England.
He added: “I propose that in future we raise the smoking age by one year every year.
“That means a 14-year-old today will never legally be sold a cigarette and that they and their generation can grow up smoke free.”
The announcement got here as a shock to traders and was felt on the inventory market.
I suggest that in future we elevate the smoking age by one 12 months yearly. That means a 14-year-old at the moment won’t ever legally be offered a cigarette and that they and their technology can develop up smoke free
Dunhill and Lucky Strike proprietor British American Tobacco (BAT) noticed its shares slide from roughly flat to 1% decrease instantly after the announcement, knocking round £600 million of its market worth.
Meanwhile, fellow London-listed agency Imperial Brands noticed shares fall 2.4% decrease after the replace. It noticed its market worth decline by round £340 million.
The firm, which owns Gauloises and Rizla, mentioned it might have interaction with the Government but additionally cautioned over the coverage transfer.
A spokesman for Imperial Brands mentioned: “We understand the Government’s desire for new tobacco control measures, because of the health risks associated with smoking.
“But, like any prohibition, the proposal to ban the legal sale of cigarettes over time threatens significant unintended consequences.
“On vaping, we will continue to engage with the Government to create effective policies which prevent youth access and build trust in the category as a potentially less risky alternative for existing adult smokers.”
Shares in Supreme, which makes disposable vaping merchandise, additionally noticed its shares transfer decrease on Wednesday.
