Is the price of cigarettes going up? Full changes to tobacco duty explained

06 March 2024 , 13:30

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Is the price of cigarettes going up? Full changes to tobacco duty explained

Smokers will pay more for a pack of cigarettes after Chancellor Jeremy Hunt confirmed a rise to tobacco duty today in his Budget.

Hunt confirmed today that a new duty on vaping products would be introduced from October 1, 2026 "to discourage non-smokers from taking up vaping". At the same time, there will be a "one off" increase in tobacco duty. The one-off increase will be £2 per 100 cigarettes or 50 grams of tobacco.

He told parliament: "Because vapes can also play a positive role in helping people quit smoking, we will introduce a one-off increase in tobacco duty at the same time to maintain the financial incentive to choose vaping over smoking."

Smokers will be pleased to hear that there will be no increase in Tobacco Duty from today. However, there could be a rise again in future budgets between now and October 2026. However, this will be down to the Government in charge at the time.

The amount of duty paid on cigarettes usually increases with inflation each year. Last year, the Treasury hiked prices twice in the Spring and Autumn Budgets.

They look and taste like sweets - no wonder underage vaping is sweeping Britain

Last year Jeremy Hunt added £1.55 to a pack of 20 cigarettes in April with a whopping 12% rise in tobacco duty and a further £1.08 in the autumn with a 7.4% rise. The second hike took the average price of a 20 pack of cigarettes to £15.67. There was also a massive additional hike of 10% on hand-rolling fags. any further increase in the budgets between now and October 2026 will likely push up the price of a pack of cigarettes to over £16.

Simon Clark, director of the smokers' lobby group Forest said: "Above inflation increases in the cost of tobacco disproportionately punish those on lower incomes. Further tax hikes will drive even more smokers to the black market, taking money from legitimate retailers and putting it into the hands of criminal gangs."

Last year, the Government confirmed its ban on young people from smoking was still going ahead. Under the plans, the legal age to buy cigarettes would rise by "one year, every year". This means that a 14-year-old today would never be legally allowed to buy a cigarette.

Follow our Budget 2024 live blog for the latest updates

Ruby Flanagan