1. Introduction

1.1 Background

Cigarette smoke causes legion outwardnesss, which the UK authorities and wellness candidates are seeking to work out. For illustration, smoke may increase the hazards of bosom disease, lung malignant neoplastic disease and asthma, It lead to higher health care and environmental costs, fire harm and loss of productiveness. All these above consequence in legion societal costs in the UK.

In order to undertake these jobs, the UK policy shapers have purely legislated to cut down coffin nails ingestion. For case, raising revenue enhancement and advertisement prohibition of baccy. These Torahs are based on the statement of Townsend ( 1998 ) , which describes as “ who can purchase coffin nails, where they can be consumed, how they can be advertised ” and covering wellness warnings and seting high indirect revenue enhancements.

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Not merely the UK authorities, but besides wellness candidates give great part to cut down coffin nail ingestion. These candidates are strongly against coffin nail smoke. For illustration, Action on Smoking and Health ( ASH ) , Smokefree and World Health Organisation ( WHO ) has been seeking to carry tobacco users to discontinue and name for greater action of the UK authorities.

1.2 Theory

In order to analyze the authorities ‘s efficiency, outwardness and snap as two economic theories are applied in this study. Harmonizing to Anderton ( 2008 ) , negative outwardness means that societal costs are greater private costs. Tobacco is the clearest illustration merchandises of making negative outwardnesss, which means that societal costs are greater than private costs ( Anderton, 2008 ) . Then, snap is a step to account the alteration in demand of one merchandise influenced by a alteration in monetary value or income. Furthermore, inelastic describes alter in demand is less than alteration in monetary value, which reflect in the value of snap is less than one. For illustration, The Scots Government ( 2006 ) demonstrated that “ a 10 % addition in the monetary value of coffin nails on mean reduces demand by 4 % in high-income states such as the UK ” . It can be accounted that the snap of coffin nails is -0.4, which means it is inelastic.

1.3 Purposes

The first and most of import intent is to find the UK authoritiess ‘ effectivity in cut downing baccy ingestion. The following purpose is to place the negative outwardnesss of coffin nails. Finally, recommendations to the UK authorities will be given.

2. Findingss

2.1 Outwardnesss

Smoke has a figure of negative outwardnesss and the most of import one is the wellness. Patient UK ( 2010 ) indicates that the most important ground of illness and decease in the UK is cigarette smoke. Around 30,000 British people die because of lung malignant neoplastic disease and eight in 10 of the decease is straight related to smoke. ( Patient UK, 2010 ) . It may do bosom disease, circulation, asthma and sexual jobs every bit good. There is no uncertainty that the wellness costs will comparatively increase. “ Treating tobacco users costs the National Health Service ( NHS ) in England, compared with ” , A study from Ash claims that the NHS spent ?2.7billion per twelvemonth which increased by ?1billion ten old ages ago. The tabular array below shows other negative societal costs of smoke.

Entire Social Costs of Smoking

Beginning: Nash. R & A ; Featherstone. H

Figure 1

2.2 Tax

The UK authorities emphasises the importance of revenue enhancement on baccy merchandises by raising revenue enhancements. The Scots Government ( 2006 ) demonstrated that “ a 10 % addition in the monetary value of coffin nails on mean reduces demand by 4 % in high-income states such as the UK ” . Harmonizing to the Scots Government ( 2006 ) , “ The consequence of a 10 % monetary value addition on the 77 billion coffin nails sold in the UK would be to cut down ingestion by about 3 billion coffin nails per twelvemonth ” .

This tabular array demonstrates the revenue enhancement gross in baccy from 2001 to 2010.

Tax gross from baccy



Value-added tax



? billion

































2009-10 ( P )




Beginning: HM Revenue & A ; Customs ( HMRC ) TMA

Figure 2

With the increasing revenue enhancement, baccy merchandises by smuggling are common and greatly consumed by the British, which have negative impact on the legal market.

HM Customs & A ; Excise ( HMC & A ; E ) analyzed that 18 % of coffin nails and 51 % of manus turn overing baccy ( HRT ) consumed in the UK was smuggling in 2002-2003 ( TMA, 2004 ) . The illegitimate point of gross revenues made the “ ?2.50 for 20 coffin nails and ?5 for 50g of HRT ” , which compete with the legal retail market by nest eggs of over ?2.00 and ?4.50 for each. ( TMA, 2004 )

2.4 Ad

It has been a long procedure for functionaries to forbid tobacco advertisement. British bureaus have prohibited baccy advertisement in 2002 ( Clarkson, 2003 ) . The UK authorities officially constrained the baccy advertisement in “ hoardings, magazines, newspapers, direct mail, internet advertisement etc ” in 2003, stated by Ash briefing ( 2006 ) . After 2003, the UK functionaries put stricter prohibition on baccy advertisement. It besides reported that the transitional ordinances in 2003 and the UK authorities prohibited baccy sponsorships in athleticss activities and imposed limitations on advertisement of baccy wadding in stores and peddling machines in 2004. In add-on, Ash briefing ( 2006 ) said that the statute law about trade name sharing restricted “ the publicity of a baccy merchandise by another merchandise and frailty versa ” in 2005.

Even though there are still many ways to near baccy advertisement. A big figure of supermarkets, newsdealers, gasoline Stationss present baccy advertisement without permission and many tobacco users ‘ images are on show in movies, Television and magazines ( The Scots Government, 2006 ) . The Health Act 2009 plans to censor the presentation of baccy merchandises and restrain the format of baccy advertisement in big stores from 1 October 2013 ( Department of Health, 2010 ) . The exhibition of baccy merchandises and baccy monetary values can entirely restrict in the baccy stores alternatively of the public countries outside.

3. Discussion

3.1 Tax

Increasing revenue enhancement of baccy is a critical policy to cut down ingestion of coffin nails and supply financess for the wellness administration. The root cause is that affordability of tobacco users can be decreased in this manner. Harmonizing to the Scots Government ( 2006 ) , “ The consequence of a 10 % monetary value addition on the 77 billion coffin nails sold in the UK would be to cut down ingestion by about 3 billion coffin nails per twelvemonth ” . It is a considerate figure of beads in baccy ingestion. In add-on, the sum of the money will partially administer to the wellness administration. This action can give fiscal aid for the wellness development, which create positive outwardness among the society. The Scots Government ( 2006 ) reported that ?26 million of the baccy revenue enhancement gave to the Scottish Executive for puting in “ wellness betterment and public wellness programme. ” It can make positive outwardness.

However, the UK authorities has non continued to raise revenue enhancements on baccy, which affect the baccy usage. Harmonizing to the figure 2, there was an upward tendency from 2001 to 2003. In comparing, the baccy excise remained steady at 8.1 alternatively of maintaining addition. It means that people in the UK can afford baccy merchandises easier than earlier. Then, the UK functionaries recognised dramatically increased in baccy demand as the serious effect in2009. The baccy revenue enhancement climbed from 8.2 to 8.8 in one twelvemonth. This upward in baccy revenue enhancement is singular and need to be maintained.

3.2 Ad

It is necessary to forbid tobacco advertisement because of great influence on people. As Anderton ( 2008 ) said that advertisement of one merchandise could indirectly increase the desire of buying. Similarly, baccy advertisement strongly influences juveniles and other non-smokers. It is a step to cut down negative information brought by baccy advertisement. Therefore, the prohibition of baccy advertisement has a great importance to cut down the ingestion of coffin nails.

Whereas the full prohibition of coffin nails publicizing in 2002, there are still a figure of baccy advertisement on public. There is a big sum of baccy merchandising point, which displays the advertisement behind the counter. It can be seen that the ordinance of the UK legislators was non thorough and ought to be strengthened. Hence, a complete prohibition on all sorts of baccy advertisement is the end of the UK authorities.

4. Decision


From the above, it exist legion negative outwardnesss of coffin nails smoking, which the UK authorities are seeking to decide. Taxation and advertisement are the precedence of the UK authorities ordinances. These actions have positive facets, which reflect in cut downing baccy dependence, support of wellness betterment and restricting the negative information of baccy advertisement. However, since the ordinances of the UK authorities are non strong plenty the effect of baccy ingestion is non fulfilling.

4.2 Recommendations

It can be suggested that the UK functionaries should raise revenue enhancement and wholly censor on baccy advertisement. Merely by increasing revenue enhancement of baccy can decrease the demand of coffin nails. Furthermore, it is critical for the UK legislators to beef up the policy and wholly restrain tobacco advertisement. On the other manus, baccy companies should detect the baccy policy. Bing witting of paying revenue enhancements and halt to publicize baccy merchandises are precedences of baccy companies. Furthermore, the wellness bureaus should publicise the injuriousness of coffin nails smoking to raise the consciousness in the populace.