Smokers in the UK are facing an increase in the cost of cigarettes following Chancellor Rachel Reeves’ Autumn Budget announcement. Addressing the Commons, the Chancellor confirmed that tobacco duty will rise above inflation, a move designed to boost government revenue but one that directly impacts consumers at the till.
Historically, cigarette prices increase annually in line with inflation unless a freeze is implemented. Last year, a similar hike based on an RPI rate of 3.65% saw the cost of a 20-pack jump by 5.65%, adding 90p and bringing the average price to £16.78. Hand-rolling tobacco faced an even steeper increase of over 15%. With this latest announcement, shoppers can expect another significant jump in prices at their local stores.
The budget didn’t stop at tobacco. Alcohol duty will also rise in line with inflation, and a new duty on vaping products is set to be introduced as part of the Labour government’s broader crackdown on nicotine and alcohol. Additionally, remote gaming duty will surge from 21% to 40% by April 2026, although bingo duty has been scrapped. These sweeping changes reflect a series of tax reforms aimed at adjusting revenue streams, with “sin taxes” on smoking and drinking taking a central role.
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