They do put restrictions on smoking and drinking - they outlawed deals on those years ago. Tobacco is about 50x the price it costs to manufacture because of taxes, and guess what? There's millions fewer smokers now than there were in the 1900's! People who don't drink, or who drink much more rarely, are a much higher number than they used to be too.

Personally though, I do think tobacco should be completely illegal. Maybe nicotine products too, though they do help people with ADD self-regulate

EDIT You are right that the costs of alcohol to the NHS is still pretty huge though - about £5bn a year and 10,000 deaths, not to speak of all the other costs. Some good stats here: https://britishlivertrust.org.uk/27-4-billion-cost-of-alcohol-harm-in-england-every-year/