In Blackburn, the local vape industry is preparing to navigate significant challenges as a new government tax on vaping products comes into effect on October 1, 2026. The “vaping products duty” will impose a charge of £2.20 per 10ml of e-liquid, with VAT added on top, regardless of nicotine content. This levy is expected to substantially increase retail prices, with some products potentially tripling in cost.

Companies such as Dinner Lady, a major vape-juice manufacturer owned by local businessman Mohammed Patel, have experienced recent hardship but continue to operate in the area. Patel’s previous factory was destroyed by a fire in September 2023, caused by a faulty light, eliminating a large production site. Despite the setback, Patel reports that his company has resumed production at a new facility and claims to be thriving, as evidenced by a fleet of high-end vehicles in the company’s parking lot.

The government introduced the new duty intending to reduce vaping uptake among children and non-smokers, citing research linking vaping to respiratory issues and cellular changes associated with certain cancers. However, the industry's response has been mixed.

Marcus Saxton, chief executive of Totally Wicked, one of the UK’s largest vape companies, supports the move if it means increased funding to combat the illicit vape market. Since vaping’s early days, unregulated products, often imported from China, have been sold illegally through small shops and corner stores. Though regulatory changes such as the 2025 ban on single-use vapes have curtailed some illicit trade, Saxton warns that the black market remains substantial, likening its peak size to the entire legitimate industry, which generates £3.6 billion annually.

Former industry lobbyist Fraser Cropper expressed frustration with the authorities’ handling of the black market, noting that legitimate companies like Totally Wicked have been unfairly stigmatized alongside illicit sellers. Enforcement currently falls to Trading Standards, which is under-resourced, but new regulations will shift responsibility in part to HM Revenue & Customs, which is expected to receive increased funding. Politicians like Andy Burnham have pledged to intensify crackdowns, including tighter planning permission rules for vape shops.

Local concerns focus on the potential economic and public health consequences of higher prices. Some fear the tax will push former smokers back toward cheap illicit tobacco, which can cost as little as £4 for 20 cigarettes. Trading Standards recently uncovered illegal tobacco sales at a Blackburn vape shop, underscoring ongoing enforcement challenges.

Retailers expressed differing views on the impact. Anthony van Eijsden, a salesman at Signature Vapour in Blackburn’s The Mall shopping centre, predicted the new tax would force many legitimate businesses to close, given the town’s economic profile with many on low incomes. “That’s a huge amount of money,” he said, citing a rise in price from £8 to £34 for a 100ml bottle of vape juice.

Conversely, Shamir Khan, who runs Vape Stop in Blackburn’s Whalley Range district, reported robust sales and strong local demand. “People just love to vape,” he noted, emphasizing the community’s enthusiasm for the habit despite the looming price increases.

As the vaping industry in Blackburn braces for the new duty, questions remain about how it will reshape consumer behavior, legitimate businesses, and the ongoing battle against illicit trade.