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Tobacco prices set to rise following Budget duty increases
The government is raising tobacco duty by 3.66% RPI plus an additional 2%, making the average price of a pack of 20 cigarettes roughly £17.74. These changes form part of revenue-raising measures intended to bring in £26 billion, alongside tax increases on alcohol, travel and online gambling.
The duty escalation aligns with the government’s aim to reduce smoking rates, following steep long-term price rises that have contributed to a decline in adult smoking to 10.6% (5.3 million people).
Source: The Sun, 26 November 2025
See also: HM Treasury – Budget 2025
Editorial note: Tobacco Duty rates on all tobacco products will increase by RPI inflation +2 ppts. These changes will take effect from 6pm on 26 November 2025.
The one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco products and annual uprating of tobacco duty by RPI + 2 ppts next year will take effect from 1 October 2026 and will be included in Finance Bill 2025-26. See page 109, point 4.125 of the Budget 2025.
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Vaping costs set to rise under new Budget tax plans
Government confirmed plans for a vape liquid excise tax from October next year, when a standard 10ml bottle of e-liquid will have £2.20 of tax placed on it. The government will also require all vape products for retail sale to carry duty stamps as part of the new regime with fines for those who breach laws and avoid the tax. The tax changes follow earlier action to prohibit disposable vapes and sit alongside further levies on online gambling.
Source: The Sun, 26 November 2025
See also: HM Treasury – Budget 2025
Editorial note: As previously announced, the government will legislate for the new Vaping Products Duty to be introduced from 1 October 2026 at a flat rate of £2.20 per 10ml applied to all vaping liquid, alongside the Vaping Duty Stamps scheme to support compliance. It remains to be seen if prices increase by this amount of if manufactures ‘absorb’ some of this tax.
The government is also directing up to £10 million in funding from HMRC to Border Force in 2026-27 to enhance operational information gathering capabilities ahead of the Vaping Products Duty introduction and to support enforcement at the border. See page 110, point 4.138 of the Budget 2025.
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Imperial Brands claims growth for Paramount low value cigarette
Imperial Brands has claimed its cheaper cigarette brand Paramount has become one of the fastest-growing products in the UK cigarette market. The article claims Paramount has secured approximately 5% share in independent stores since its launch in October 2024.
According to the article, the brand’s growth has come as low value cigarettes account for nearly 37% of all UK cigarette sales. Paramount is sold at an RSP of £12.50 in king-size and super-king formats.
Source: Scottish Local Retailer, 26 November 2025
Editorial note: This article has been included to provide insight into market trends and industry developments.
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Budget raises alcohol and tobacco costs amid pressure on pubs
A government decision to lift alcohol duty in line with RPI is set to raise drink prices from early next year, adding around 13p to a bottle of red wine, 11p to Prosecco and nearly 40p to gin. The change follows a 5.8% annual rise in alcohol prices. The Treasury expects the alcohol duty system to deliver £14 billion by 2030–31, even as the Office for Budget Responsibility notes a 6.4% fall in alcohol sales this year.
Professor Sir Ian Gilmore, chairman of the Alcohol Health Alliance, welcomed the Autumn Budget’s decision to align alcohol duty with inflation. He described it as a return to a long-established principle that duty should rise in line with inflation, which he views as fair and necessary to reduce alcohol-related harm, protect public health, and restore the benefits lost through previous freezes and cuts. He noted that while some in the alcohol industry might frame the change as punitive, it represents a responsible approach to taxation rather than an additional burden.
Source: Daily Mail, 26 November 2025
See also: HM Treasury – Budget 2025
Editorial note: Media stories covering prevention of ill-health are being included in ASH Daily News because policy change in these areas is indicative of the Government’s position on prevention and their attitudes to harm-causing industries.
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Tobacco and Vapes Bill: Committee Stage
The House of Lords completed the final day of its Committee Stage proceedings on Wednesday 26 November.
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Written answers
Asked by Andrew Rosindell, Shadow Foreign, Commonwealth and Development Minister, Romford, Conservative
To ask the Secretary of State for the Home Department, what steps she has taken to work with relevant authorities to tackle the illegal sale of cigarettes in (a) England and (b) the parliamentary constituency of Romford.
Answered by Sarah Jones, Policing and Crime Minister, Croydon West, Labour
The Government is committed to reducing the number of illicit tobacco and vaping products on sale nationally.
In January 2024, HMRC and Border Force published their latest illicit tobacco strategy, ‘Stubbing Out the Problem’. This sets out the Governments’ continued commitment to restrict the trade in illicit tobacco with a focus on reducing demand, and to tackle and disrupt organised crime groups. This strategy is supported by £100 million of new smokefree funding allocated over 5 years to boost existing HMRC and Border Force enforcement capability.
HMRC are also working closely with both Trading Standards and Border Force to develop a robust compliance approach for the introduction of Vaping Products Duty (VPD) on 1 October 2026.
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Asked by Kevin Hollinrake, Conservative Party Chair, Thirsk and Malton
To ask the Secretary of State for Business and Trade, whether the Licensing Taskforce were consulted on the proposed ban on vaping inside pubs.
Answered by Kate Dearden, Employment Rights and Consumer Protection Minister, Labour, Halifax
The Premises Licensing Taskforce were not consulted on the proposed ban on vaping inside pubs. Members of the Taskforce did not raise vaping in the wider consultation and Call for Evidence on Premises Licensing.
The Tobacco and Vapes Bill gives us the powers to make most public places and workplaces that are smoke-free also vape-free. Exactly which settings should become vape-free will be a matter for secondary legislation and will be subject to a consultation. The Taskforce are able to respond to the consultation. We want to hear the views of all groups.
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ASH Daily News is a digest of published news on smoking-related topics. ASH is not responsible for the content of external websites. ASH does not necessarily endorse the material contained in this bulletin.
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