Alcohol and tobacco duties

The measure

Alcohol Duty 

Alcohol duty rates will increase on 1 February 2026 in line with the Retail Prices Index (RPI).  

Tobacco duty 

Duty rates on all tobacco products will increase by RPI inflation , plus two percentage points. These changes will take effect from 6pm on 26 November 2025. Additionally, the one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco products and annual uprating of tobacco duty by RPI  plus two percentage points next year will take effect from 1 October 2026.

Who will be affected?

Businesses involved in the manufacture, distribution, holding, sale, importation and consumption of alcoholic and tobacco products. 

When will the measure come into effect?

Starting from 26 November 2025 (tobacco duty) and 1 February 2026 (alcohol duty).