Smoking costs UK £13m every day

Published on Tuesday 25 August 2009 22:22

TOBACCO use costs the British economy nearly £5 billion every year, according to new research.

The latest edition of the Tobacco Atlas, a global study of the economic and health impact of tobacco, states that the UK loses 1.58 billion (($2.66bn) annually due to healthcare costs.

However, economists behind the report said that once other indirect factors are taken into account – such as dropped productivity, absenteeism, premature deaths, and missed taxation opportunities due to cigarette smuggling – the figure would be "at least three times higher".

That is equivalent to 13 million per day, or more than 500,000 per hour. The estimated revenue raised from tobacco in excise duty and VAT is 10bn.

Worldwide, researchers put the cost of tobacco consumption at 304.6bn in 2007, and stressed that globally, the number of people smoking was likely to increase.

However, they acknowledged the "terrific" steps being taken by administrations such as the Scottish Government to curb the health impacts of smoking, and said economic benefits would follow as a result. The 128-page atlas, which was published yesterday and is now in its third edition, is a joint venture by the American Cancer Society (ACS) and the World Lung Foundation (WLF).

Hana Ross, an economist and strategic director of international tobacco control research at the ACS, said the researchers had been unable to find suitable information pointing to the "indirect" costs to the UK economy of tobacco consumption, but he estimated that it would be significantly higher than the 1.58bn quoted.

"My estimate is that the figure would be at least three times higher, and that is a very conservative estimate," she said. "Other issues like productivity and absenteeism are important."

Ms Ross said of legislation banning smoking in public places: "It's a terrific thing that there's a ban on smoking in public in Scotland, and it will reduce the costs associated to second-hand smoke inhalation, but even that only accounts for around 10 per cent to 15 per cent of the total."

Sheila Duffy, chief executive of anti-smoking campaign group ASH Scotland, said the study was "startling".

The atlas estimated that 72 per cent of people who die from tobacco-related illnesses next year will be from low- and middle-income countries.

Judith Mackay, a co-author of the report and an adviser with the WLF, said: "Individuals have got to try to prevent their children from smoking, to try to give it up themselves, and then you've got the role of employers, too."

But she said the ultimate responsibility for cutting tobacco use lay with governments.

The report was launched in Dublin at an international cancer summit organised by cycling star Lance Armstrong's Livestrong foundation.