CHANCELLOR Jeremy Hunt has set out his plans for economic growth in today’s Budget – but some of the changes will impact our day-to-day habits.
Mr Hunt made several announcements today which will affect both the price of booze and cigarettes.
GettyToday’s budget will affect both the price of booze and cigarettes.[/caption]
Here’s how today’s announcements will affect the prices of alcohol and cigarettes.
First, the chancellor has promised the extend the current alcohol duty freeze.
It means producers should not have to hike the price of beer, wine and spirits to offset raised levies.
This saving should be passed on to punters in pubs and supermarkets.
Meanwhile, the cost of cigarettes will be going up to an eye-watering £16.
That works out to around 80p per king-size cigarette.
The chancellor hopes this will push more people to smoking alternatives.
Spring Budget at a glance
Fuel duty will be frozen and the 5p cut extended for a year
Alcohol duty will be frozen until February next year
National insurance was cut by an additional 2p
An extension of the Household Support Fund for the fifth time
Households on Universal Credit will get an extra year to repay emergency loans from the Government
A new tax on vapes, which will cause prices to rise
A one-off new tax on fags to ensure they are more expensive than the electronic alternative
The high income child benefit charge was raised from £50,000 to £60,000
Will the price of cigarettes go up?
The cost of a packet of cigarettes will top £16 after today’s Budget, following a 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.”
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.
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.”
In a bid to make e-cigs unaffordable for children, Mr Hunt used the Budget to unveil a new vaping tax.
This should see the price of vapes rise making them more unaffordable for kids.
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.
The duty will apply to the liquid in vapes, with higher levels for products with more nicotine.
Will the price of alcohol go up?
Announcements made today should see the price of alcohol remain the same.
The Chancellor said that he would continue to freeze alcohol duty at its current rate rather than increase it with inflation.
Taxes on beer, wine and spirits that were due to go up in August will now be frozen until February next year.
The announcement marks a major win for The Sun’s Save Our Sups campaign to help both bosses and punters.
The Chancellor said: “Today I have decided to extend the alcohol duty freeze until February 2025.
“This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75 per cent business rates discount I announced in the Autumn.
“We value our hospitality industry and we are backing the great British pub.”
According to Hunt, the freeze would mean:
2p less on the average pint of beer
1p less on the average pint of cider
10p less on the average bottle of wine
33p less on an average bottle of spirits
Mark Kent, of the Scotch Whisky Association, hailed the alcohol tax freeze, saying: “Support for Scotch is good for industry, good for the economy and good for consumers who enjoy a dram.”
Follow along for live updates on the Spring Budget here.
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