Shares in London's tobacco giants fell after prime minister Rishi Sunak proposed effectively banning children from ever being sold cigarettes in the future.
During his speech at the Conservative Party conference on Wednesday, Sunak laid out the proposals that would prevent those born before 2009, now aged 14, from ever being sold tobacco products in the UK.
“If we want to do the right thing for our kids, we must try and stop teenagers taking up cigarettes in the first place,” he said.
"Because without a significant change, thousands of children will start smoking in the coming years and have their lives cut short."
Though the number of smokers in the UK has decreased overall in recent years, research shows that some areas have actually experienced an uptick in the habit.
Well over 100 areas marked an increase in smokers between 2018 and 2021 in fact, including the likes of Oxford, Liverpool, Belfast, and Sheffield.
Tobacco giant Imperial Brands PLC (LSE:IMB) had acknowledged changing regional habits in its interim results meanwhile, prompting the reintroduction of its Embassy and Regal cigarettes in the likes of London and Scotland over the past year.
Sunak’s plan to overhaul rules on cigarette sales would be subject to a vote in parliament, though he expressed confidence in the legislation being passed.
“It’s a matter of conscience,” he continued, also hinting at tougher rules to crack down on child vaping.
"Four in five smokers have started by the time they're 20. Later, the vast majority try to quit, but many fail because they're addicted."
The government will look at flavoured vapes, disposable ones and packaging, Sunak said.
Previous government aims have seen the implementation of a 2030 ‘smoke-free’ target, where the number of smokers in the UK would fall below 5% of the population.
Sunak’s proposal on Wednesday was originally put forward by a government-commissioned review in 2022.
Cancer Research UK head Michelle Mitchell hailed Sunak’s plan, commenting: “If implemented, the prime minister will deserve great credit for putting the health of UK citizens ahead of the interests of the tobacco lobby.”
Shares in Imperial Brands slipped 2.8% on the news, while British American Tobacco PLC (LSE:BATS) fell by 1%.
Vaping products distributor Supreme PLC (AIM:SUP) dropped 3.7%.