Budget to unveil tough new powers against illegal vapes

Rogue traders selling illegal vapes are set to face £10,000 fines and even potential prison sentences under sweeping new enforcement powers to be unveiled in Wednesday’s Budget, the government has confirmed.

The measures represent the toughest action to date against the booming black market in unlicensed e-cigarettes – a trade ministers say is undermining the legitimate vape sector and threatening consumer safety.

Under the new rules, all vapes sold in the UK will need to carry a digital stamp featuring a QR code, enabling shoppers, Trading Standards and other enforcement teams to quickly verify whether products are genuine. Businesses will be able to register for the scheme from April 2026 ahead of a compulsory rollout in the autumn, and will have six months to clear any unstamped stock already on shelves.

The Treasury is also granting Border Force and HMRC enhanced powers to seize illicit vapes at ports and distribution hubs, adding what Trading Standards leaders described as “significant weight” to ongoing enforcement. John Herriman, chief executive of the Chartered Trading Standards Institute, told the BBC the joint effort would “make a real difference to something that has been a real scourge of the high street”.

The government argues the measures are part of wider plans to protect Britain’s retail centres, with the number of vape shops rising sharply in recent years and around one in ten adults now using vaping products. Ministers have already banned disposable single-use vapes and are progressing the Tobacco and Vapes Bill, which will introduce strict controls on advertising, sponsorship, flavours, packaging and in-store displays.

Industry reaction has been broadly supportive. Gillian Golden, chief executive of the Independent British Vape Trade Association (IBVTA), welcomed the “concerted effort” to stamp out rogue trading, warning that illicit product flooding has caused “unfair competition” and reputational damage to legitimate retailers. She added that the IBVTA would work with HMRC to support businesses as they prepare for the new vape duty and compliance requirements.

Dan Marchant, director of Vape Club and founding member of the UKVIA, noted that the “irresponsible sale” of illegal and non-compliant products has done “enormous damage” to the reputation of an industry that exists to help adult smokers move away from cigarettes.

“When I talk about the vaping industry, I’m talking about vape specialists and the legitimate retail side of things – not market stalls and ‘candy shops’ that happen to stock these products,” he added.

“We mean the manufacturers, brands, and distributors who have spent years investing in compliance, staff training, and responsible retailing. That distinction is vital because the responsible side of the industry has consistently pushed for better regulation and stronger enforcement.”

Marchant urged the government to take a serious look at the UKVIA’s proposal for a new and more effective retail and distributor licensing framework, which would generate the funds needed for proactive enforcement of the regulations, without costing the taxpayer a single penny.

“The government now has an opportunity to back up its words with proper funding for Trading Standards and local authorities, giving them the tools to shut down rogue traders for good,” he said. “Legitimate vape retailers are ready and willing to work with policymakers to create a framework that protects young people, supports public health, and continues to aid adults trying to quit smoking.”

The move follows one of the largest-ever coordinated crackdowns on illegal vape sales and other high street crime. Operation Machinize 2, led by the National Crime Agency and carried out throughout October, saw every UK police force join forces with Trading Standards, HMRC, Immigration Enforcement and Companies House.

The month-long sweep targeted the criminal exploitation of retail premises, including vape shops, convenience stores and mini-marts. Authorities raided 2,734 premises and arrested 924 individuals. More than 111,000 illegal vapes were seized, alongside £10.7m in suspected criminal proceeds and £2.7m worth of illicit goods.