In a letter, ACS and FWD urged the government to lift the pre-Budget allocation rules on stock to ensure that businesses can obtain enough supply to meet demand from customers, and again raised concerns that stock shortages would lead to an increase in the illicit market.
In response, Kemi Badenhoch MP, said: “While it was confirmed there would not be a Budget this autumn, final decisions on the timing of tobacco duty rate changes are still to be made. An announcement will be made in due course. In the meantime, anti-forestalling restrictions remain in place.”
ACS chief executive, James Lowman, said: “Retailers need the government to make the right decision on the status of the forestalling restrictions urgently. Sales patterns during the Covid-19 pandemic have been unpredictable and extraordinary. Continued disruption from Covid-19, combined with the end of the EU Exit transition period at the end of this year, means that setting allocations would effectively be a guess, and that would lead to a risk that retailers will face shortages. We must do everything we can to ensure that customers are not forced to seek out tobacco products on the illicit market.”
FWD chief executive, James Bielby, added: “Wholesale tobacco sales to independent retailers went up by 18% year-on-year during the first lockdown, and restrictions do not reflect the increased demand we expect to see in the months ahead. Wholesalers have to anticipate demand well in advance in order to offer retailers the stock they need, so delays in giving legitimate distributors a clear steer on allocations is a gift to illicit tobacco traders who will pick up any shortfall in supply.”