“Don't light up!” says Hertfordshire County Council – but then invests £24m in British American Tobacco

A leading Conservative county councillor has defended an investment of more than £20 million of public money into a tobacco company at the same time as the county council launches a Hertfordshire-wide anti-smoking campaign.

Since April, the county council has taken on a major role in promoting public health. However, this hasn't filtered through to their pension fund managers who have put £23.9m into British American tobacco this year alone. This makes the investment the largest of any in the pension fund's portfolio.

Cllr Nick Hollinghurst, a member of the County's Health Scrutiny Committee said: "Pension fund managers always hide behind the smoke-screen of a legal duty to get best return from pension funds in their care. Yes, they have to do that - but there are many other shares on the market giving just as good yields and rates of capital growth. We don't have to invest in companies that make harmful products. BAT also avoids paying tax that could go towards running the NHS that has to pick up the pieces of their customers' damaged health and lives."

Smoking is the largest cause of preventable death in Hertfordshire, killing 1,700 people a year - more than the next six most common causes of death combined.

The anti-smoking policy said the council "intends to continue to reduce smoking prevalence with focused, sustained and co-ordinated action on a number of fronts". Councillors and officers were also told to refuse any partnerships, payments, gifts or services from the tobacco industry.

British American Tobacco, which has its headquarters in London and produces Dunhill, Lucky Strike, Kent and Pall Mall cigarettes, made global profits of £5.97 billion last year but did not pay a penny of UK corporation tax.

While smoking generates £227 million a year in tax, the bill for health care and associated costs are an estimated £278 million a year, leaving the Hertfordshire taxpayer £50 million out of pocket.

Councillors at Watford Borough Council,at a meeting on Wednesday November 20th, voted unanimously for a motion to bring in standardised unbranded packaging. The motion argued the initiative would make smoking less attractive to young people.