UK: Study shows achieving a tobacco-free generation would be good for the economy

A new study conducted by Landman Economics on behalf of Action on Smoking and Health, and partially funded by the SPECTRUM research consortium, reveals an additional economic benefit for the UK in creating a smoke-free country, thereby supporting the government's growth mission. The study highlights that reducing tobacco consumption has significant economic benefits, not only in terms of lower costs for healthcare systems, but also in terms of increased productivity and tax revenues through improved population health. and finally by reallocating freed-up purchasing power towards goods and services that generate economic activity. The United Kingdom, where 11.9% of adults smoke, is aiming for a "tobacco-free generation" by 2030, i.e. a smoking prevalence of less than 5% of the overall population.

The economic impact of a tobacco-free country

On the eve of MPs' vote on the generational tobacco ban, the study, using standard input-output models and recent data on smoking costs and consumption habits, shows that shifting consumers towards purchasing goods and services other than tobacco could create tens of thousands of new jobs in the UK. If the government's ambition to become smoke-free were achieved, 135,000 new full-time equivalent jobs in the UK economy could be created, with an estimated value of nearly £10 billion (around €12 billion). By comparison, the most recent tobacco industry estimate in 2017 indicated that only 5,000 tobacco-related jobs in the UK were available.

Hazel Cheeseman, Executive Director of Action on Smoking and Health, highlighted the significance of this historic vote: “ Tomorrow, MPs will take a historic step when they vote in favour of the Tobacco and Vapes Bill, and they should do so knowing the many benefits it will bring to future generations. The phased ban on tobacco sales will unlock potential for the next generation, not only by keeping them healthy, but also by ensuring more jobs and a healthier economy. » Public Health Secretary Ashley Dalton said smoking costs the country more than £21 billion (around €25 billion) a year, including £18 billion (around €21 billion) in lost productivity.[2].

This sharp increase in the number of jobs is explained by the fact that most purchased products and services generate jobs in the economy through production, manufacturing, or the provision of services. As for tobacco-related activity, it generates very few jobs. On the other hand, the purchasing power freed up by the absence of tobacco product purchases is directed particularly toward goods and services that create jobs and are therefore likely to support economic activity.

As part of the analysis, the researchers assessed the likely impact across the country, estimating the size of the employment bonus in different regions as smoking rates decline. Eliminating tobacco sales would reinvest millions of pounds into local economies, boosting growth and job creation across Britain.

Enthusiastic reactions from economists

Howard Reed, the economist in charge of the analysis, said that " Few people consider that reducing smoking will have a direct impact on the country's growth strategy, but this analysis clearly shows that reducing tobacco consumption can have major societal benefits beyond improving health. Moreover, shifting spending away from tobacco can have a very rapid impact on job creation, while some of the health benefits may take many years to manifest. »

Dr Rob Branston, economist and associate professor at the University of Bath, added: “ Tobacco is a bad choice for the British economy in many ways, from the drain on public finances through the excess illness it causes to the damage it does to productivity by making people too sick to work. But it also harms British jobs, because spending on almost anything else is better for the health of our economy. Reducing smoking, as the government plans, is a double win—good for health and good for growth. »

©Generation Without Tobacco

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[1]ASH, Ending the sale of tobacco will increase UK jobs, published March 26, 2025, accessed March 27, 2025

[2]Pickover Ella, Smoke-free nation will 'boost jobs and the economy' – report, Independent, published March 26, 2025, accessed March 27, 2025