Rachel Reeves’ Budget is expected to come down heavy on rogue traders dealing in illegal vapes, who could be fined £10,000 and face prison. What’s more, a digital duty stamp is also set to be introduced across all vapes sold in the UK to help identify fake vapes.
The Chancellor is expected to announce that Border Force and HMRC are to be armed with sweeping new powers to seize illegal vapes on the spot with rogue traders that flout the rules facing £10,000 fines and a potential prison sentence.
This will be backed by mandatory licensing, on-the-spot fines, more rigorous right-to-work checks and tougher action on tax evasion and rogue directors – helping to protect legitimate businesses and stop scammers.
All vapes sold in the UK will have to carry a cutting-edge digital duty stamp, including QR code making it easy for consumers and enforcement officers to quickly scan and spot a fake.
Under expected plans, businesses manufacturing vaping liquid in the UK will be able to register for the scheme from April 2026, with HMRC providing full support and transitional stamps to help the sector prepare before the scheme becomes compulsory in October 2026. Shops will have a six month grace period to sell any unstamped stock.
Association of Convenience Stores chief executive James Lowman said: “The activity of rogue traders currently vastly outpaces the level of enforcement, so criminals are willing to take the risk. Our members would welcome targeted action to disrupt the illicit trade that undermines responsible retailers across the country, but new powers and penalties will only be effective if Trading Standards officers have the additional resources they need to enforce locally.”
