UK smoking ban: what now for big tobacco?
UK prime minister Rishi Sunak has proposed banning younger generations from buying cigarettes. So, what now for big tobacco firms like Imperial Brands and British American Tobacco? IGTV financial analyst @AngelineOng finds out.
(Video Transcript)
Tobacco ban proposal causes uproar
Now, love it or hate it, Britain's proposed ban on cigarettes for younger generations is topical. It's being spoken about everywhere from the corridors to the dining tables. Those for it say it's a breakthrough. Smoking costs Britain's health services an estimated £17 billion. That's right, £17 billion a year.
Those against it say it's a creeping prohibition and a stealth tax. For tobacco giants, like Philip Morris, there was an outcry. Imperial Brands, showing you the chart here, which reaffirmed its forecast and announced a just over a billion pound share buyback, has hit back, saying the ban threatens unintended consequences.
Will other countries follow suit?
British American Tobacco, maker of Lucky Strike, also said that these proposals would be difficult to enforce. What is also interesting is the timing. Now, the writing for this rule was already on the wall in the UK.
The real concern for these big tobacco companies is that it will cause other countries to follow suit. Denmark, along with other nations already thinking about a similar move. The question is, can big tobacco move fast enough to replace the traditional products of those currently deemed safer and less addictive?
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
