THE cost of a packet of cigarettes will top £16 after today’s Budget.
The Treasury imposed a dramatic increase in tobacco duty to ensure a tax on vapes keeps smoking alternatives cheaper.
GettyA pack of cigs is set to hit an eye-watering £16[/caption]
Last year Jeremy Hunt added £1.55 to a pack of 20 cigarettes.
The average cost of a 20-pack is currently £14.39 – making Britain one of the most expensive places to smoke in Europe.
But now prices are set to rise to an eye-watering £16, with the one-off increase of £2 per 100 cigarettes or 50 grams of tobacco.
Mr Hunt told the Commons: “To discourage non-smokers from taking up vaping, we are today confirming the introduction of an excise duty on vaping products from October 2026 and publishing a consultation on its design.
“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.”
In France, cigs cost about £9 per pack compared to £7 in the Netherlands and £6.50 in Germany.
The move comes as part of Rishi Sunak’s tough stance on smoking – with the PM known to personally be extremely anti-tobacco.
At a party conference last year he unveiled plans to outlaw smoking for anyone born after 2009 by raising the legal age of buying fags by one year every year.
Earlier this year, he also announced disposable vapes will be banned.
In a bid to make e-cigs unaffordable for children, Mr Hunt used the Budget to unveil a new vaping tax.
The duty will be paid on imports and by manufacturers and will apply specifically to vape liquids.
The rate of tax will vary according to the nicotine content.
Along with one-off tobacco duty, the two measures are expected to raise £500m by 2028/2029.
Dan Marchant, director of Vape Club and founding member of the UK Vaping Industry Association, said: “The Government needs to be extremely careful that they do not shoot their own Smokefree 2030 plans in the foot, and any taxation needs to be considered very carefully.
“Outside of the harm reduction benefits, the next biggest motivational factor for smokers switching to vaping is the very significant financial savings.
“The Treasury needs to be extremely cautious not to take this away and actually discourage smokers from switching, making the goal of a smoke-free generation unattainable.”
The two new levies will likely bring in half a billion pounds to the struggling Treasury coffers.
But tobacco firms have warned the soaring price of fags is driving illegal black market sales.
Sarah Connor of JTI UK said: “Unreasonable tobacco taxes fuel criminal sales of illegal tobacco, cost taxpayers’ money and drive up inflation.”
JTI research suggests that a quarter of cigarettes and 38 per cent of rolling tobacco sold in the UK swerves tax.
Price of vapes rise
VAPE prices are set to rise after Jeremy Hunt whacked a new tax on e-cigs in today’s Spring Budget.
The tax will be imposed on imported e-cigs and manufacturers to make them unaffordable for kids.
It comes after a ban on disposable vapes was announced earlier this year as part of a clampdown.
The duty will apply to the liquid in vapes, with higher levels for products with more nicotine.
The vape tax is being modelled on schemes in other European countries, such as Germany which imposed a €1.60 duty on every 10ml of vape liquid.
GettyIn today’s Spring Budget, Jeremy Hunt whacked on a new tax to ensure fags stay more expensive than vapes[/caption]