Spring Statement document confirms whether cigarette prices will rise or not

THE cost of a pack of cigarettes will not rise after the Spring Statement, it was confirmed today.

Smokers won't have to pay more for cigs as the Chancellor did not announce plans to hike rates in her announcement.

A rise wasn't anticipated because the Government confirmed last October duty will increase once a year in the Budget, which is usually held in the Autumn.

Prices will rise annually based on the Retail Price Index (RPI) measure of inflation, plus an additional 2%.

The price of a pack of fags is currently £16.78 after rising from £16 in October and £14.39 before then.

It comes as the Government looks to discourage people from smoking cigarettes and vaping.

Government plans leaked last year and later confirmed by Keir Starmer revealed ministers want to ban smoking in pub gardens and outside football stadiums as part of a wider crackdown.

The Prime Minister said: “My starting point on this is to remind everybody that over 80,000 people lose their lives every year because of smoking.

“That is a preventable death, it's a huge burden on the NHS and, of course, it is a burden on the taxpayer.”

Meanwhile, Ms Reeves confirmed in the Autumn Budget a flat rate duty will be applied to vaping liquid from October 2026.

It will see a new tax on vapes of £2.20 per 10ml of e-cigarette liquid from next Autumn.

A new law to prohibit the sale of disposable vapes to protect kids' health is also taking effect from June 1, 2025.

But refillable vapes will remain available as doctors use them to help people quit smoking.

What is Tobacco Duty?

Tobacco duty is a tax 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.

The price of cigarettes usually increases with inflation each year unlessthe Chancellorintervenes to freeze the rates.

The previous increase was revealed in March last year, when the price of a pack of cigs increased to an average of £16.

The former Chancellor Jeremy Hunt introduced a one-off increase of £2 per 100 cigarettes or 50 grams of tobacco.

Previous to this, prices rose in November 2023 by 7.4% – or £1.08.

This took the price of an average pack of 20 cigarettes to £15.67 from £14.59.

Taxing tobacco is a big revenue maker for the Government.

The OBR estimates tobacco duties will raise £8.7billion for the Government in the 2024/25 tax year.

What else was announced in the Spring Statement?

Rachel Reeves cut welfare spending today as she tries to raise cash on the back of sluggish economic growth.

She kicked off her address to MPs warning that Britain would have a £4.1billion black hole by 2030 without today's cuts.

The threat of future tax rises was also raised by a dreadful economic outlook – with the growth forecast for this year cut in half.

Ms Reeves offset the gloomy outlook by confirming the National Living wage will go ahead for millions of workers next week.

But she announced a furtherround of welfare cuts of around £500million today to help balance thebooks.

The Chancellor told MPs: “We believe that if you can work, you should work – and if you can’t, you should be properly supported.”

Measures announced earlier this month – including restricting those eligible for health benefits – were expected to save the government £5billion.

But the Office for Budget Responsibility has since warned they will only save around £3.4billion – leaving the Chancellor fishing around for more money.

The revised package will see Universal Credit incapacity benefits for new claimants frozen at £50 per week until 2030 rather than increased inline with inflation.

Read our live blog for all the latest updates on the Spring Statement.

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