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U.K. lawmakers back anti-smoking bill, moving step closer to a future ban on all tobacco sales
London — U.K. lawmakers have voted decisively in favor of legislation aimed at eventually banning smoking in Britain. The controversial Tobacco and Vapes Bill is now one step closer to becoming law after clearing its first hurdle in parliament.
The bill would make it illegal to sell tobacco to anyone born after January 1, 2009, with the legal age for the purchase of tobacco products increasing by one year every year until it eventually covers the entire population.
Backers of the legislation, including Prime Minister Rishi Sunak, who has made it a key policy of his government, say the aim is to create the U.K.’s “first smoke-free generation.”
If enacted, it would be one of the toughest national anti-smoking measures in the world.
Under current law, it is illegal for anyone under the age of 18 to buy tobacco products in the U.K., but under the Tobacco and Vapes Bill, children who are turning 15 this year, or anyone younger, would never be able to legally buy tobacco in Britain.
The proposed legislation would not criminalize smoking, but rather the sale of tobacco depending on a customer’s age, and it would ensure that anyone who’s currently allowed to buy tobacco products will never be prevented from doing so.
But despite praise from some health experts and the broad backing of parliament, the bill has generated controversy — even sparked rebellion — within Sunak’s own Conservative Party.
The legislation was debated Tuesday in the House of Commons, where some more libertarian-minded Members of Parliament argued that it would limit personal freedoms and branded it “unconservative.”
Liz Truss, who served very briefly as U.K. prime minister in 2022, called the proposal a “virtue-signaling piece of legislation about protecting adults from themselves in the future.”
Another former Prime Minister, Boris Johnson, said it was “mad” that the party of Winston Churchill, Britain’s famously cigar-loving World War II leader, was considering “banning cigars.”
Conservative Member of Parliament Simon Clarke told CBS News partner network BBC News that the ban would be counterproductive.
“I think it actually risks making smoking cooler,” he said. “It certainly risks creating a black market, and it also risks creating an unmanageable challenge for the authorities.”
While the number of people who smoke in Britain has been falling for years, the Action on Smoking and Health campaign group says it remains the primary cause of preventable illness and premature death in England, accounting for approximately 74,600 deaths every year.
The proposed bill would also attempt to reduce the number of young people taking up vaping. It would ban the sale of the inexpensive, disposable vapes often seen in the hands of minors, and restrict the variety of vape flavors available in a bid to reduce uptake by children.
A similar smoking ban was proposed by New Zealand’s former Prime Minister Jacinda Arden, but it was scrapped earlier this year by the country’s new coalition government.
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Inflation has been cooling and that’s a sign that the Federal Reserve could cut its federal funds rate soon. The Fed adjusts this benchmark rate in response to economic developments. And, many experts agree that a rate cut will happen at some point before the end of the year.
That’s important because changes to the federal funds rate are typically followed by changes to the interest rates financial institutions charge consumers for borrowing money and pay them for depositing it. If the Fed does cut its federal funds rate, you could earn less on deposits, but pay less on loans.
And, you should consider the prospect of a coming rate cut as you make financial decisions. We’ve outlined a few things you should do and a few you shouldn’t with a potential rate cut looming below.
Take advantage of today’s high CD rates here now.
3 things to do (and 3 things to avoid) before interest rates are cut
With a potential rate cut ahead, there are a few financial moves you should make now:
Open a CD
With rates expected to fall ahead, using a certificate of deposit (CD) to lock in today’s high returns may be an advantageous move. These are fixed-rate deposit accounts that guarantee the rate you lock in for the entire term.
Of course, you typically have to guarantee that you’ll keep the money in its account for the entire term, too. You may be penalized if you access your money before the account matures. Nonetheless, CDs give you a compelling way to lock in today’s high rates for anywhere from a few months to several years. And, that’s valuable with a potential rate cut looming.
Don’t wait for rates to fall. Lock in your CD returns now.
Choose a HELOC over a home equity loan
Do you plan on tapping into your home equity? Home equity loans and home equity lines of credit (HELOCs) are two common options to choose from. But with the prospect of a rate cut ahead, it may be best to choose the latter.
HELOCs typically come with variable rates while interest rates on home equity loans are usually fixed. And, with a potential rate cut ahead, opting for a variable rate over a fixed rate could offer meaningful long-run savings.
Limit your variable-rate savings exposure
Savings accounts offer more flexibility than CDs – making it possible to access your money when you need it. That’s important for your emergency savings. But, with an expected rate cut looming, you should limit your variable-rate savings exposure. Think about how much money you need in your emergency savings and consider locking in a strong fixed rate of return on the rest of your money with a CD.
“Aim to save enough to cover three to six months’ worth of expenses to cushion against unexpected financial setbacks,” explains Justin Stivers, financial advisor and founding attorney at Stivers Law, an estate planning and asset protection law firm. But, once you have that amount in a variable-rate deposit account, like a high-yield savings account, you should consider opening a CD with your remaining savings to lock in today’s rates.
3 things to avoid before interest rates are cut
Although there are a few things you should do with a potential rate cut head, there are also a few financial moves you should avoid, including:
Focusing on short-term CDs
When you open a CD, you can choose short-term or long-term options. Short-term options typically mature within a year while long-term options often take several years. With a potential rate cut ahead, and interest rates high at the moment, it may be best to lock in today’s high rates for multiple years rather than opting for short-term options.
Selling your gold holdings
The potential for a rate cut is tied to the fact that inflation has been cooling. And, since gold is a strong inflation hedge, you may be tempted to sell your gold investment. But, inflation isn’t the only reason you should have gold in your portfolio.
Gold is a safe haven – not just as it relates to inflation, but also against other market risks. Between the current geopolitical stage and the coming election, it’s a good idea to maintain a healthy exposure to safe havens. So, selling your gold holdings could be a mistake.
Lock in a fixed mortgage rate
If you’re in the market for a new home, you may be weighing your fixed and variable-rate options. But, with rates expected to come down ahead, an adjustable-rate mortgage (ARM) may be a better option than its fixed-rate counterpart. If you opt for an ARM you could benefit from future rate cuts more quickly versus having to refinance with a fixed-rate loan.
Learn more about your mortgage options today.
The bottom line
It’s important to adjust your financial plan when rate cuts are expected. Those cuts can impact your savings returns and the cost of borrowing money. But, you can protect your returns by opening a long-term CD with a fixed interest rate. Also, limit your variable-rate savings exposure. If you plan on borrowing money against your home equity, or buying a new home, consider variable rate options as they may produce savings later. And, don’t start selling your gold holdings just yet. They may provide valuable protection against market risks outside of inflation.
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A U.S. citizen who was a representative of a drone company doing business with the Israelis has been wounded in Israel, after the Hamas-aligned militant group Hezbollah fired missiles toward Israel, U.S. officials tell CBS News national security correspondent David Martin.
A spokesperson for the U.S. State Department confirmed that an American civilian was injured, but didn’t offer further details. The U.S. Embassy in Jerusalem is assisting the injured American and the citizen’s family, the spokesperson said. The U.S. government has repeatedly urged Americans to stay away from the region because of the ongoing Israel-Hamas war.
“The department reminds U.S. citizens of the continued need for caution and increased personal security awareness throughout Israel and the West Bank, as security incidents often take place without warning,” the State Department spokesperson also said.
Fears about the possibility of war between Israel and Lebanon’s Hezbollah have grown after an Israeli airstrike killed a senior Hezbollah commander last Wednesday. Israel said the commander, Mohammad Naameh Nasser, was responsible for firing rockets into Israel. Hezbollah responded with another barrage of rocket fire. Like Hamas, Hezbollah is backed by Iran but is believed to be larger and better armed.
Holly Williams, Omar Abdulkader, Margaret Brennan and Olivia Gazis contributed to this report