Smokers across the UK will face a direct hit to their wallets from 6pm this evening, as a new tobacco duty increase announced in the Autumn Budget takes effect.
Budget Announcement Confirms Price Rises
Chancellor Rachel Reeves delivered the blow during her Budget speech to the Commons this afternoon, confirming that tobacco duty will rise above the rate of inflation. The series of tax, benefits and pension changes revealed today are set to impact millions of people nationwide.
The duty increase means that any cigarettes purchased from local shops after 6pm tonight will likely carry a higher price tag. This continues the pattern of year-on-year price increases that typically move in line with inflation, unless the Chancellor decides to intervene with a freeze.
Understanding the Financial Impact
Looking at last year's increase provides a clear indication of what smokers can expect. The Government applied the RPI rate of 3.65 per cent, which resulted in the cost of a 20-pack rising by 5.65 per cent overall.
This previous hike added approximately 90p to a standard pack of cigarettes, pushing the average price to around £16.78 from October 30.
The situation was even more severe for users of hand-rolling tobacco, which saw the same RPI increase plus an additional 12 per cent rise, creating a total hike of 15.65 per cent.
Broader Tax Changes Beyond Tobacco
Tobacco isn't the only consumer product facing higher taxes following today's Budget announcements. Alcohol duty will also increase in line with inflation, adding to the cost of beers, wines and spirits.
In further significant tax reforms, remote gaming duty will see a substantial jump from 21 per cent to 40 per cent starting in April 2026. Meanwhile, in a move that will please bingo enthusiasts, the Chancellor confirmed that bingo duty will be scrapped entirely.
The Labour government is also introducing a new duty specifically targeting vapes, as part of their broader approach to taxation on tobacco, alcohol and vaping products.
