Could chancellor Philip Hammond raise the price of a pack of cigarettes above £10 this week?
SMOKERS could soon be hit by Philip Hammond's Budget with the cost of a pack of 20 cigarettes rising above £10.
The tobacco industry is concerned the chancellor will use his Budget on Wednesday to increase the amount of tax raised from sales of tobacco.
This year has already seen smokers hit with a three price increases - with the March excise increase, the increased cost of minimum pack sizes of 20s, and the introduction of the Minimum Excise Tax.
As a result, the average cost of a premium pack of 20 cigarettes now stands at £9.91 in the UK, according to the Tobacco Manufacturers' Association (TMA).
The TMA now estimates the Government could push the price of pack of 20 above £10.
Tobacco industry bodies fear that any further price rise will leave smokers out of pocket and might even force them to turn to the black market.
Will Hill from British American Tobacco UK, who makes Lucky Strikes, Benson & Hedges and Pall Mall, told the Sun Online: “These increases added together mean many smokers have seen their out of pocket spend on a pack of cigarettes go up by £1 this year already.
"Yet another excise increase in 2017 could be the straw that breaks the camel’s back and forces many smokers into the cheaper-priced black market."
He warned that the industry has already seen a significant increase in black market and smuggled tobacco products fuelled by the duty driven price increases.
Mr Hill added that it would be more effective to reduce smoking in the UK by promoting the use of e-cigarettes, which are widely believed to be less harmful.
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A spokesperson for the TMA told the Sun Online: "Tobacco prices have increased by around 70 per cent since 2010 including in effect three increases already this year thanks to the March budget increase, the ban on small packs and the introduction of a minimum excise tax.
"Any increase will simply lose taxpayer’s money, push ever more smokers to avoid paying UK duty and boost the black market and the criminal gangs that operate it.
"Such an increase, just before the crucial Christmas trading period, will also significantly impact on retailers including many corner shops for whom tobacco makes up around 35 per cent of their business. "
The UK is already among the most expensive places in Europe to buy a packet of cigarette, with prices soaring above the average for the continent.
In Belgium smokers pay about £5.70, while in Spain a pack of 20 costs just below £4.
Philip Hammond will present the next Budget on November 22, revealing the Government's latest economic plan for the country.
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