Only shops with licences will be allowed to sell vapes and cigarettes under new plans to stamp down on rogue traders.
Ministers are also looking at flavours, ingredients and flavours of vapes in order to stop young people taking up the habit. The Government announced it is drawing up proposals to close a major gap in the law.
Currently any business can sell tobacco and vapes - meaning cheap illicit products are readily available to children.
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Health Minister Stephen Kinnock said: "We aim to close a major gap in the law – making it necessary for shops to hold a licence to sell tobacco, vapes and nicotine products.
"Our new proposals will better protect children by rooting out the rogue retailers blighting our high streets and help adults know which shops are selling legitimate products."
The Government is also seeking expert opinion on flavours, nicotine strength, and appearance of vapes. A Tobacco and Vapes Bill, designed to create a smoke-free generation and steer children away from a lifetime of addiction, is making its way through Parliament.
Under the proposals, those selling products without a licence will face unlimited fines or on-the-spot penalties of £2,500.
New research from King's College London and University College London strongly suggests selling vapes in plain packaging could reduce the number of children taking up vaping.
It found 53% of children aged 11 to 18 surveyed felt young people would be interested in trying vapes when shown branded packaging and flavours.
This dropped to 38% with plain packaging and descriptions of flavours.
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