Measure

Tobacco duty rates

The measure

The government will renew the increase in the duty rates for all tobacco products by the tobacco duty escalator of 2% above RPI. The duty rate for hand-rolling tobacco will be increased by an additional 10% above the escalator (to 12% above the RPI). 

 

Who will be affected?

Businesses that are involved in the production or import of tobacco. Individuals who buy and use tobacco products. 

 

When will the measure come into effect?

These changes will take effect from 6pm on 30 October 2024. 

Our view

The increase in tobacco duty follows the 2024 Spring Budget announcement of a one-off tobacco duty increase.  

It is expected that the increases in tobacco duties will be passed onto UK consumers, and therefore this measure demonstrates a consistent approach between governments in supporting a public health strategy to reduce the prevalence of smoking. This supports the government’s long-term measure to move the NHS from a sickness to prevention model of healthcare.