When will the price of cigarettes increase and how much will a pack cost?

The cost of a pack of cigarettes will soon top £16 after the government increased tobacco duty.

The increase was introduced by Chancellor Jeremy Hunt in the March 6 spring budget.

The Treasury Department imposed the dramatic increase to ensure that a tax on vaping keeps smoking alternatives cheaper.

When will cigarettes increase in price?

The government’s announcement in March might make you fear that the price of tobacco will rise soon.

But don’t worry, because the increase won’t take effect until October 2026.

The government said the extra money made from the increase will help boost revenues to support public services such as the NHS.

How much does a pack of cigarettes cost?

The average cost of a pack of 20 cigarettes will rise to an eye-watering £16 from 2026, following a rise of £2 per 100 cigarettes or 50 grams of tobacco.

The last time tobacco taxes were increased was in the autumn declaration last November.

The average pack of 20 cigarettes increased by £1.55 to £14.39.

Why are cigarette prices rising?

The price of cigarettes usually rises with inflation every year unless the Chancellor steps in to freeze rates.

This is what Rishi Sunak did in his Spring 2022 Budget, when he was Chancellor in Boris Johnson’s Cabinet.

According to the Office for Budget Responsibility (OBR), tobacco taxation is a huge revenue generator for the government, collecting £10.4 billion in 2023.

The tax is levied on companies that make or import cigarettes into Britain.

When the tax is increased, the costs are passed on to consumers, who have to pay more for tobacco products in stores.

Ministers are currently aiming to make Britain ‘smoke-free’ by 2030, meaning less 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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