We are also taking every opportunity to encourage low-tax member states to increase their tobacco taxes on health grounds. For example, during the United Kingdom presidency of the Community we held a seminar in London for health and tax officials which produced useful conclusions on the support that tax can give to health policy. John Cope 9th February 1993 Cigarette Duty – Hansard – UK Parliament
The Major government boldly increased taxation on cigarettes to reduce demand. This is a ‘Nanny State’ policy. Nanny States treat adults as incapable of thinking rationally or, less pleasantly, they need saving from their own stupidity.1
Nanny States believe preventing preventable deaths is a good thing.2 Reducing demand for smoking by using taxation has been embraced by successive governments.3 John Major’s tax policy turbocharged the reduction of demand for smoking, which was already in decline in 1993. The statistics show his success. Between 1994 and 2023 smoking reduced by 52%. Only 12.9% of men and women now smoke.3
Tony Blair noted smoking is a social activity, which is part of the addiction narrative. He challenged this by banning smoking in public places.4 The ban included pubs, restaurants, offices and public transport.
Draconian pricing and bans on smoking in public places changed attitudes, which further accelerated the downswing in usage.5 Major and Blair saved thousands of lives through their Nanny State approach to the catastrophic death rate caused by tobacco.
Climate Change
In countries like the UK and the US, the transport sector is now responsible for emitting more greenhouse gases than any other, including electricity production and agriculture. The all-women crew fighting Indonesia’s peatland fires – BBC Future
The Nanny State’s paradigm is anti-smoking policies. In comparison the same politicians promote fossil fuel usage. (see Addendum),
Proponents of nudge theory suggest that well-placed ‘nudges’ can reduce market failure, save the government money, encourage desirable actions and help increase the efficiency of resource use.6
Climate Change will irrevocably change the world for every human being, the entire animal and fish population and plant life. Yet as Greta Thunberg memorably said politicians are sharply focused on Blah, Blah.7
George Osborne, bragged about his pro-fossil fuel policies, “We froze fuel duty throughout the last parliament — a tax cut worth nearly £7 billion a year.” His Conservative government rejected using taxation for anti-fossil fuel campaigns because it was ‘good’ politics. He nonetheless maintained the anti-smoking policies of Major and Blair, “Tobacco duty will continue to rise as set out in previous Budgets, by 2% above inflation from 6pm tonight.” One sentence in a lengthy speech.
The Office for Budget Responsibility (OBR) has estimated that the cumulative cost of freezing fuel duty rates between 2010/11 and 2021/22, relative to increasing them in line with inflation, to be around £65 billion, after factoring in the expected fall in demand for fuel from higher duty rates (OBR, Economic and Fiscal Outlook, CP545, October 2021, Table A8). (my emphasis)8
The Conservative governments from 2010 have made a counter-intuitive commitment to promoting fossil fuel usage to the tune of £65bn. Bizarrely they have developed a Green Financial Strategy 2023, suggesting that significant resources will be allocated, We established a UK Infrastructure Bank with £22 billion of capital to level up and decarbonise our economy.9 Their Fuel Duty bribe is an unnoticed toxic incentive to support fossil fuel usage. Fuel Duty bribes cost far more than their green strategy. A green policy developed by political schizophrenics, which is crude version of St Augustus’s plea, “Please God, make me good, but not just yet.”10
A two-pronged anti-fossil fuel attack a la Major and Blair would add 25p to the cost of a litre of petrol. Osborne and other chancellors have forgone £65bn of tax revenues for political reasons, losing the opportunity to invest in a Green Britain.
Green investment would incentivise innovation, giving Britain a technological boost. Politicians with tragically limited imaginations are destroying lives and contributing to accelerating climate change catastrophe.
Addendum: George Osborne’s 2016 Budget Speech
In 2010 plans would have seen fuel duty rise above inflation every year — and cost motorists 18 pence extra a litre. We wholeheartedly rejected those plans — and instead we took action to help working people. We froze fuel duty throughout the last parliament — a tax cut worth nearly £7 billion a year. In the last twelve months, petrol prices have plummeted. That is why we pencilled in an inflation rise. But I know that fuel costs still make up a significant part of household budgets and weigh heavily on small firms. Families paid the cost when oil prices rocketed; they shouldn’t be penalised when oil prices fall. So I can announce that fuel duty will be frozen for the sixth year in a row. That’s a saving of £75 a year to the average driver; £270 a year to a small business with a van. It’s the tax boost that keeps Britain on the move. Mr deputy speaker, Tobacco duty will continue to rise as set out in previous Budgets, by 2% above inflation from 6pm tonight. (my emphasis)
George Osborne’s Budget speech in full (ft.com)
Notes
1 Britain’s incoherent drug laws | Odeboyz’s Blog (oedeboyz.com)
2 Smoking – Our World in Data
3 There have been seven prime ministers since John Major left office in 1997
4 Smoking Ban UK – The Impact So Far – Calls For An Extension (politics.co.uk)
5 Smoking-Statistics-Fact-Sheet.pdf (ash.org.uk) Data p2 see also Historical Tobacco Duty rates – GOV.UK (www.gov.uk)
6 Nudges – Economics Help Cameron’s government in 2010 established a ‘Nudge’ department to build on the successes of Major and Blair. “Nudge Unit” | Institute for Government
7 Greta Thunberg dismisses Cop26 as more ‘blah, blah, blah’ | The Independent
8 Fuel duties – Office for Budget Responsibility (obr.uk)
9 Mobilising green investment: 2023 green finance strategy – GOV.UK (www.gov.uk)
10 What did St. Augustine mean when he said, “Please God, make me good….”? – The Handy Philosophy Answer Book (papertrell.com)
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