The UK Vaping Industry Association (UKVIA) has accused Prime Minister Andy Burnham’s government of demonizing legitimate vape retailers after ministers promised pubs, social clubs, and live music venues a 20 percent business-rates cut while reviewing relief for vape shops.
The July 23 government announcement described vape shops as “anti-social businesses” that may not make a positive contribution to their communities. The new discount will begin in April 2027 and cover nearly 32,000 alcohol and music venues. The government estimates a typical pub will save £1,100 next year.
The package is worth about £100 million annually. It comes on top of a 15 percent rates reduction already granted to eligible pubs and live music venues for 2026-27, followed by a two-year real-terms freeze. Vape shops received no comparable promise, only notice that their existing relief could be reviewed to help fund the giveaway.
UKVIA Director General John Dunne called the plan a “deeply misguided and potentially damaging attack.” He said specialist retailers help adult smokers choose and use vaping products while complying with age-verification and product rules.
That role is hardly an invention of the vape industry. The National Health Service says vaping is far less harmful than smoking and can help smokers quit. Its guidance specifically advises smokers that specialist vape shops can help them choose suitable devices and e-liquid.
The threatened rate changes arrive as retailers prepare for the Vaping Products Duty (VPD), which takes effect on Oct. 1. The new excise tax will add £2.20 to every 10 milliliters of e-liquid, regardless of nicotine strength. HM Revenue & Customs acknowledges higher prices could push some consumers toward tobacco, although cigarette duties will rise at the same time.
UKVIA wants the government to withdraw its blanket characterization, reconsider the rates proposal, and protect compliant retailers. It also wants ministers to accelerate the licensing system created by the Tobacco and Vapes Act 2026. The law, which received Royal Assent on April 29, provides for personal and premises licenses for retailers selling vaping and other regulated products in England.
The association says retailers that sell to minors or stock illegal vaping products should face severe penalties. But responsible specialists should not be treated like rogue convenience stores or other outlets that ignore product and age restrictions. A licensing system would give authorities a direct way to distinguish between the two.
The government’s own duty policy claims it wants to preserve the financial incentive for smokers to switch to lower-risk alternatives. Branding legitimate vape shops as community nuisances—while subsidizing venues built around alcohol sales—does exactly the opposite.
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