The Tobacco and Vapes Bill: A New Licensing Landscape for Retailers
The UK’s Tobacco and Vapes Bill 2025 (“the Bill”) is not just a public health initiative—it represents a fundamental shift in how tobacco, herbal smoking products, cigarette papers, vapes and nicotine products will be regulated and sold. For licensing practitioners, this is a watershed moment, introducing a framework that mirrors aspects of the Licensing Act 2003 but with its own complexities and uncertainties. Retailers will need to apply for licence(s) and licensing authorities will be permitted under new regulation to refuse licences in certain circumstances.
Smoke-Free Generation
The aim is to gradually phase out the sale of tobacco products across the country to the extent that it will be an offence to sell tobacco products, herbal smoking products and cigarette papers to anyone born on or after 1 January 2009 (Clause 1(1) of the Bill). This phased prohibition represents a bold step towards eradicating smoking-related harm for future generations and means that tobacco products will never legally be sold to individuals born after 1 January 2009. This is proposed to come into force by 1 January 2027 when those individuals will turn aged 18. The Independent reports that Dr Charmaine Griffiths, chief executive at British Heart Foundation, says “The Tobacco and Vapes Bill is a once-in-a-lifetime opportunity to protect the next generation from the dangers of tobacco, so we’re urging parliamentarians to help this legislation enshrined in law as quickly as possible.”.
The Licensing Regime
The Bill empowers the Secretary of State to create a national licensing scheme for anyone selling tobacco or vape products—whether retail, wholesale, or online.
Under Clause 16(1) of the Bill, it is proposed that a personal licence would need to be obtained by individuals who sell tobacco, vapes, or nicotine products, expose these products for sale and possess them for the purpose of retail sale.
Under Clause 16(2) of the Bill, a premises licence would need to be obtained for premises used to store tobacco or nicotine products for retail sale and display or supply these products to customers.
Under Clause 17 of the Bill, any person in breach of the above, commits an offence.
Enforcement Powers
Local authorities and Trading Standards will gain sweeping powers to inspect, enforce, and issue penalties. Fixed penalty notices of £200 for underage sales are already proposed, alongside potential criminal prosecution for operating without a licence.
Selling without a licence could result in unlimited fines or on the spot penalties of up to £2,500 and potential criminal prosecution.
Practical Implications for Businesses
- Retail Density and Proximity Rules: Local Authorities may refuse licences in particular locations or restrict the number of licences granted in specific locations. This could have a huge impact on supermarkets and convenience stores, petrol stations and specialist vape shops.
- Hospitality Sector Impact: Venues offering cigars, shisha or vape products will fall under the regime and will need to ensure they obtain the necessary licences in order to be legally compliant.
- Online Sellers: E-commerce platforms will need licences, introducing new compliance burdens for age verification and delivery controls.
Whilst the Bill signals a decisive move towards tighter regulation, uncertainties remain. The licensing framework will be shaped by secondary legislation, leaving uncertainty around application criteria, renewal process and appeal rights.
The Bill is at committee stage and will therefore be considered further before becoming an Act and law. It is expected to come into play in early 2026. Expected implementation of the retail licensing scheme is anticipated in September 2026
Commentary
Joanna Onisiforou, Associate Chartered Legal Executive in our Regulatory and Criminal Group, comments:
“For retail and hospitality operators, the impact is likely to be substantial leading to strict licensing requirements, increased compliance costs and operational restrictions. Early preparation will be key to avoiding disruption and ensuring compliance.”
For further advice, please contact our team.
