UP IN SMOKE
When will the price of cigarettes go up and how much will a pack cost?
THE cost of a pack of cigarettes will top £16 after the Government hiked tobacco duty.
The increase was brought in by Chancellor Jeremy Hunt in the Spring Budget on March 6.
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The Treasury imposed the dramatic increase to ensure a tax on vapes keeps smoking alternatives cheaper.
When will cigarettes go up in price?
The Government's March announcement might have you fearing the price of tobacco is going up soon.
But don't worry as the hike doesn't come into effect until October 2026.
When tobacco duty is raised it usually comes into effect on the same day the hike is announced, but not in this case.
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The Government said the extra money made from the hike will help raise revenue to support public services like the NHS.
How much will a packet of cigarettes cost?
The average cost of a pack of 20 cigarettes will rise to an eye-watering £16 from 2026, following an increase of £2 per 100 cigarettes or 50 grams of tobacco.
The last time tobacco duty was increased was on November 22, 2023, the same day as the Government's Autumn Statement.
The average pack of 20 cigarettes went up by £1.55 to £14.39.
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Why are cigarettes going up in price?
The price of cigarettes usually increases with inflation each year unless the Chancellor intervenes to freeze the rates.
This is what Rishi Sunak did in his Spring 2022 Budget, when he was Chancellor in Boris Johnson's cabinet.
Taxing tobacco is a huge revenue-raiser for the Government, with £10.4billion collected in 2023, according to the Office for Budget Responsibility (OBR).
The tax is charged to companies making or importing cigarettes in the UK.
When the tax is raised, the cost is passed on to consumers who have to pay more for tobacco products in the shops.
Ministers are currently aiming to make Britain “smoke free” by 2030, meaning fewer than 5% of adults have the habit.
The hope is that the ever-increasing price will deter people from buying them.
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