The price of a pack of cigarettes will exceed £16 after today’s budget.
The Treasury has imposed a dramatic increase in tobacco tax to ensure that the tax on cigarettes makes smoking alternatives cheaper.
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A pack of cigarettes is set to fetch a staggering £16 Credit: Getty
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Last year Jeremy Hunt added £1.55 to a pack of 20 cigarettes.
The average price 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 a staggering £16 after a one-off increase of £2 for 100 cigarettes or 50 grams of tobacco.
Mr Hunt told the Commons: “To discourage non-smokers from using cigarettes, we are today confirming the introduction of excise duty on cigarette products from October 2026 and publishing a consultation on its design.
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“As 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, cigarettes cost around £9 a 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 prime minister known to be strongly anti-tobacco personally.
At a party conference last year, he revealed plans to ban smoking for anyone born after 2009 by raising the legal age for buying fags by one year each year.
Earlier this year, he also announced a ban on disposable vapes.
In a bid to keep e-cigarettes out of reach for children, Mr Hunt used the Budget to introduce a new tax on cigarettes.
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The duty will be paid on imports and by the manufacturer, and will be applied specifically to vape liquids.
The tax rate will vary depending on the nicotine content.
Dan Marchant, director of the Vape Club and founder member of the UK Vaping Industry Association, said: “The government must be extremely careful not to thwart its own plans for Smokefree 2030, and any taxation should be considered very carefully.
“Beyond the harm reduction benefits, the next biggest motivating factor for smokers switching to vaping is the very significant financial savings.
“The Treasury must be extremely careful that this does not take away and actually discourage smokers from switching, making the goal of a smoke-free generation unattainable.”
Along with the one-off tobacco duty, the two measures are expected to raise £500m by 2028/29.
But tobacco companies have warned that the skyrocketing price of fags is fueling illegal sales on the black market.
JTI UK’s Sarah Connor said: “Unreasonable tobacco taxes encourage the criminal sale of illegal tobacco, cost taxpayers money and fuel inflation.”
JTI research shows that a quarter of cigarettes and 38 per cent of roll-your-own tobacco sold in the UK are not taxed.
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In today’s Spring Budget, Jeremy Hunt introduced a new tax to ensure fags remain more expensive than vapes Credit: Getty
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