In a significant move to protect public health and support legitimate businesses, Chancellor Rachel Reeves will use next week's Budget to launch a major offensive against the illegal vape trade plaguing Britain's high streets.
New Powers for Enforcement Agencies
Border Force and HMRC officers will receive new authority to confiscate illegal vaping products on the spot during raids and inspections. Rogue traders caught selling these unlawful items will face severe penalties, including instant fines of up to £10,000 and the creation of new criminal offences that could lead to a prison sentence.
The government aims to dismantle the criminal networks profiting from the black market vape trade, which undermines compliant British businesses and exposes consumers to potentially dangerous, unregulated products.
Digital Duty Stamps to Combat Counterfeits
A central pillar of this crackdown is the introduction of a mandatory Vaping Duty Stamps Scheme (VDS). From October next year, all vapes sold in the UK must carry a digital duty stamp featuring a QR code.
This measure will allow both consumers and enforcement officers to quickly scan a product and verify its authenticity, making it significantly harder for fraudsters to sell counterfeit goods. The physical stamp will include digital features for traceability and will collect data about the manufacturer.
Implementation Timeline and Business Support
To ensure a smooth transition, HMRC will provide full support and transitional stamps to the sector. Businesses that manufacture vaping liquid in the UK can register for the scheme from April.
Shops will then benefit from a six-month grace period to sell any existing stock that does not yet carry the new duty stamp before the system becomes compulsory in October next year.
A Number 10 source stated: "Britain’s high streets are being flooded with illegal vapes by rogue traders. The Chancellor will crack down hard - giving Border Force and HMRC the power to seize dodgy vapes on the spot and hit offenders with £10,000 fines. We’re protecting shoppers and backing honest businesses."
Broader Crackdown and High Street Revival
This initiative is part of a wider strategy to revive Britain's high streets, which have seen an explosion of shops selling illicit goods. The plans also include mandatory licensing for vapes and tougher action on tax evasion.
Furthermore, local communities will be granted powers to block new vaping and gambling shops in their areas, helping to clean up and reclaim the character of local high streets. This aligns with Keir Starmer's recently announced Pride in Place strategy, which pledged £5 billion to rebuild deprived communities.
In a separate but related Budget announcement, Ms Reeves will also target other businesses flouting laws, such as shady car washes, nail bars, and takeaways, with a £1 million funding boost for a new crack team of investigators.
