Public Health England figures have revealed the potential benefits that standardised packaging of tobacco products could bring, not only for health, but in a boost for the local economy.
Savings of around £19.4 million across the area could be made by the use of standarised packaging, providing a real economic boost to the most deprived communities.
The new figures come following recent official data from Australia, where standardised packaging was introduced in December 2012.
Data released by the Australian Treasury show a 3.4% fall in tobacco sales by volume in the first year following the introduction of standardised packs If that was mirrored here, PHE predicts that total savings across Avon, Gloucestershire and Wiltshire would be up to £19.4 million.
With tobacco a major cause of health inequalities – the greatest harm being suffered by the most disadvantaged – the benefits would be most felt in areas of greater social deprivation; not only reducing the devastating harm caused by smoking and boosting health improvement, but also increasing families’ disposable income – money that could be spent on other things providing a real boost to them and local economies.
Retailers earn relatively little profit from tobacco sales. On average, only 7 – 9% of the cost of tobacco is retained by the retailer, compared to 20 – 30% for food and drink products.
Money saved by customers from reduced spending on tobacco is likely to be saved or spent elsewhere locally and benefit local businesses more.
For example, the estimated figures show total savings and potential knock on local economic benefits of:
- £1,150,474 in Bath and North East Somerset;
- £3,937,811 in Bristol;
- £5,306,212 in Gloucestershire;
- £1,422,521 in North Somerset;
- £1,749,312 in South Gloucestershire;
- £2,031,168 in Swindon;
- £3,848,289 in Wiltshire;
The evidence from Australia also shows a record 15.2% decline in the rate of smoking between 2010 and–2013. A number of factors will have contributed to this success, including tax rises, bans on retail displays and media campaigns, but the introduction of standardised packaging in year three of the survey period is a major contributor to the fastest ever drop in smoking rates in Australia since the survey began in 1991.
The Australian “real-world” data clearly demonstrates the positive outcomes, and adds to the already substantial and compelling case for the introduction of standardised packaging as an effective measure to tackle the serious health harms caused by smoking.
The body of evidence on standardised packaging clearly shows the positive impacts:
- increasing the visual effectiveness of health warnings – with people smoking less or put off starting;
- reducing the appeal of cigarettes, particularly to young people;
- eliminating the powerful marketing tool of branding; as well as
- removing the false perception and myths that some brands are less harmful;
The new evidence from Australia, and estimated local economic benefit form part of PHE’s response to the Government’s consultation on the introduction of regulations for standardised tobacco packaging.
PHE’s response builds on its submission to Sir Cyril Chantler’s review on standardised packaging in January 2014.
Dr Shona Arora, Centre Director for the Avon, Gloucestershire and Wiltshire Public Health England Centre, said: “Smoking remains the biggest cause of premature mortality in England, accounting for 80,000 deaths every year.
“Standardised packaging is a powerful measure that would help to save lives. The evidence from Australia is adding to the substantial and irrefutable case that the absence of attractive packaging works to reduce the number of smokers, as well as encouraging others to cut down.”
“The harms from smoking hit hardest in the more deprived communities. Standardised packaging can help us make a real impact on reducing the shocking statistics on health inequalities. And in addition, the savings made on tobacco sales will have a knock on benefit to residents and local economies.
“The introduction of standardised packaging will be a major boost to our tobacco control efforts.”
Fiona Andrews, Director of Smokefree South West added: “The evidence is in, and it is clear. This shows that the introduction of standard packs is likely to decrease the number of children in the South West starting to smoke.
“Attractive packaging is a key reason why young people are tempted to try smoking which can lead on into a lifetime of addiction, an addiction that ends in death for 1 in 2 of all long-term smokers, as the Smokefree South West campaign Be there tomorrow highlighted.”
