Spring Budget 2024: Cambridgeshire vape shop fears cut to business
The Chancellor's due to announce a new levy on vapes today
Youngsters in Cambridgeshire are being discouraged to take up vaping thanks to a new tax.
The Chancellor's considering a levy on the liquid used in vapes to make the habit unaffordable for children, which he's due to lay out in today's budget.
Jeremy Hunt is also due to announce higher duties for products with more nicotine as well as a one-off increase in tobacco duty.
Vape shop 'could lose a third of business' due to levy
Anthony Elpert runs Ecigzoo in Wisbech and has been vaping since 2009.
"The UK Government was quite noble and put the health of its citizens first to encourage people away from smoking so there were no levies; it seems that is now changing and the health of its citizens is not quite as important as raising taxes," he said.
"If one 10ml bottle costs £2.50 for the customer, if it's a 10p per millilitre levy, that's going to add 30% to the price; it's going to hurt but we can't say how much yet.
"We're going to sell less, customers will move away and we could lose a quarter or a third of our business.
"It all depends on what the levy is and how it's calculated to see the true impact of it."
Investment in businesses should be priority, says group
Investment in infrastructure in places like Cambridgeshire is also being earmarked as a top priority for businesses in the region, according to the county's Chambers of Commerce.
"Post-Covid, we've seen many challenges which have led to businesses battling high inflation, cost pressures but also a real struggle to be able to attract and retain talent.
"We need to make sure we're pulling levers that will enable things to ease those pressures on businesses.
"Over half of businesses we were speaking to felt that in 2024, things would look a little brighter but the problem is they weren't feeling as though investment, sales and cash flow were going to ease.
"So, while the mood was cautious optimism, we are still seeing businesses holding back
What is the Chancellor planning to set out?
Mr Hunt is expected to deliver a budget that he is due to say will "mean more investment, more jobs, more productive public services and lower taxes – sticking to our plan in a budget for long-term growth.
“Interest rates remain high as we bring down inflation.
"But because of the progress we’ve made because we are delivering on the Prime Minister’s economic priorities we can now help families with permanent cuts in taxation.
“We do this not just to give help where it is needed in challenging times, but because Conservatives know lower tax means higher growth and higher growth means more opportunity and more prosperity."
Mr Hunt is also due to announce plans for delivering on higher wages, including a rise to the national living wage from £10.42 to £11.44 from next month.
But he is expected to say: “With the pandemic behind us, we must once again be responsible and increase our resilience to future shocks; that means bringing down borrowing so we can start to reduce our debt.”