England: Stopping smoking could inject £11bn into local economies

Published in the journal Tobacco Control[1], a study by academics at the University of Sheffield, sets out the annual expenditure on cigarettes and other tobacco products and how this money could be spent in cities across England. Nearly £11 billion - representing tobacco expenditure less the amount retained by local retailers as profit (£7 billion) - could be invested in local businesses, services and leisure.

The researchers analyzed data from theSmoking Toolkit study, conducted among 18,721 adult smokers and which included an assessment of the amount spent on tobacco products. These data were then compared with government tax revenue figures and national estimates of illicit tobacco consumption. The amount smokers reported for tobacco purchases per week was £25.68. This gives the estimated total annual tobacco expenditure of the 6.1 million smokers in England of £8.2 billion. However, the authors of the study believe this is an underestimate of total expenditure, requiring an upward correction. Based on tobacco duty revenue, they estimated total tobacco expenditure in England at £11.6 billion.

Significant benefits for England's poorest regions

In England, as in many other countries, smoking has become a real social marker, and affects the most disadvantaged populations first. Local authorities with low incomes have a higher percentage of adult smokers and smokers tend to smoke a greater number of cigarettes per day than average. Residents of more working-class cities such as Manchester or regions in the north-east of the country have relatively high levels of consumption (20.8%), while more affluent cities such as Wokingham or Richmond upon Thames have much lower smoking prevalences within their population, 5.5% and 6% respectively. Similarly, people without qualifications were more likely to be tobacco users (28.2 %) than those with qualifications (6.6 %) in 2021.

The authors estimated that the amount of money available if all smokers in England quit completely would be £10.9 billion. In per capita terms, £246 would be available for each adult in England. The authors estimated that this could range from £209 in the South East to £320 in the North East, with the North East historically poorer. For adult smokers, the economic benefit would be £1,776, ranging from £1,535 in the South East to £2,095 in the North East.

Benefits for the local economy and the health of individuals

The authors say the results of this study assess the potential financial benefit to local economies of quitting smoking. This financial benefit is in addition to the direct health benefits of smokers quitting and the knock-on economic effects on health. For example, better health can lead to increased productivity at work and reduced healthcare costs. In England, the government has set a target of achieving a smoke-free generation by 2030. However, modelling suggests that in England, people living in the most socio-economically deprived areas are unlikely to achieve this target; the percentage of smokers in the most deprived areas is not expected to fall below 5% until the mid-2040s.

A British study found that 230,000 households, comprising 400,000 adults and 180,000 children, fell below the poverty line because of tobacco spending[2]In the face of rapidly rising costs of living, the authors insist on highlighting the financial burden that smoking places on households and communities, as well as the potential financial benefits that quitting smoking could bring to local economies.

By the end of 2023, a study by Landman Economics had estimated the total social cost of tobacco in England at £49.2 billion (€57.6 billion) per year. Productivity costs, mainly borne by businesses and the local economy, are by far the largest, at £32 billion (€37.4 billion).[3].

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[1] Morris D, Gillespie D, Dockrell MJ, et al Potential smoke-free dividend across local areas in England: a cross-sectional analysis Tobacco Control Published Online First: 20 March 2024. doi: 10.1136/tc-2023-058264

[2] Nyakutsikwa B, Britton J, Langley T. The effect of tobacco and alcohol consumption on poverty in the United Kingdom. Addiction 2021;116:150–8. doi:10.1111/add.15096

[3] Tobacco-free generation, Social cost of tobacco estimated at over £49bn in England, published on December 16, 2023, consulted on April 8, 2024

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