Starting next month, smokers in the UK will face an unprecedented rise in cigarette prices due to increased tobacco duty announced by Jeremy Hunt. This adjustment could significantly affect smoking habits amidst the ongoing cost of living crisis.
Details of the Price Increase
The forthcoming changes will see the average price of a 20-pack of cigarettes rise by £1.15, marking a total increase of more than 15% when combined with the 12.7% RPI adjustment and an additional minimum of 2% on other tobacco products. Even hand-rolling tobacco will not be spared, with prices set to increase by £2 for a 30g pack.
Economic and Social Implications
This substantial price jump is part of the government’s strategy to reduce smoking rates, aiming for a “smoke-free” Britain by 2030, where less than 5% of adults are smokers. However, there are growing concerns about the potential expansion of the black market for tobacco products, which has already cost the Treasury an estimated £51.3 billion.
Tobacco Duty and Revenue
The current cigarette duty is 16.5% of the retail price, plus an additional £5.26 per packet of 20. Tobacco taxes are a significant revenue stream for the government, bringing in about £10.7 billion annually, which represents 1.2% of the total tax take.
Potential for Quitting Smoking
With prices set to climb, the financial burden of smoking will likely push more smokers towards quitting. Organizations like Action on Smoking and Health have advocated for duty increases to be in line with earnings rather than inflation to alleviate some pressure, yet the scheduled increases proceed as planned.
Conclusion: A Call to Action for Smokers
As cigarette prices reach new heights, now is an optimal time for smokers to consider quitting. Not only will this alleviate the financial strain brought by the new prices, but it will also contribute to better health outcomes in the long run.
