The UK government will raise the cost of cigarettes, cigars, tobacco, and vaping products, Chancellor Rachel Reeves announced in the 26 November Budget, Tobacco Journal reports. Tobacco duties are expected to generate around GBP 8.1 billion (USD 10.1 billion) in 2025-2026, accounting for 0.7% of total tax receipts.

From 26 November 2025, duties on all tobacco products will rise by inflation (September RPI of 4.5%) plus 2 percentage points, taking effect from 6pm that day. A further one-off increase of GBP 2.20 per 100 cigarettes or 50g of other tobacco products will apply from 1 October 2026, alongside annual uprating at RPI +2%.

The Budget also confirmed a flat-rate excise duty of GBP 2.20 per 10ml on vaping liquids from 1 October 2026, with future increases tied to RPI +2%, reinforcing the government’s ongoing strategy to reduce tobacco and nicotine consumption.