Cost of cigarettes to rise from 6pm tonight

Rachel Reeves confirmed in her budget earlier today (Wednesday, November 26) that the cost of cigarettes will rise. The increase will come into force from 6pm tonight.

The Chancellor said that tobacco duty will increase above inflation. It was announced that rates will rise by an RPI inflation figure of 3.66% plus an extra 2%. The average cost of a 20-pack of cigarettes is currently £16.78, with this figure set to rise to £17.74 from 6pm. The cost of a box of Marlboro Gold will increase from £16.80 to £17.76 while Vouge Compact Blues will go up from £17.90 to £18.93.

As reported by The Sun, the latest price increase will be a blow to smokers. The cost of cigarettes has rised by around 258% over the last 20 years, according to the Office for National Statistics.

The Government regularly increases the cost of cigarettes in a bid to put people off the habit. Statistics show that the proportion of the UK adult population who smoke fell to 10.6% in 2024.

Labour hopes to drop this figure to below 5% by 2030, making the UK ‘smoke-free’. However, experts have warned that the price rises will fuel a cigarette black market which will ultimately cost the Treasury in lost revenue.

Tobacco duty is a tax charged to companies making or importing cigarettes in the UK. When it is increased, consumers have to pay more for tobacco in our shops.

Cigarettes usually rise with inflation every year. In 2024, the government used the RPI rate of 3.65% to add 90p to the cost of a 20-pack of cigarettes.

The latest increase is expected to raise an additional £8 billion for the government in 2025/26. This is a 0.8% increase compared to last year.

However, Simon Clark, director of Forest, a smokers’ lobby group, said the hike will “discriminate against consumers” from poorer backgrounds. He added that the move could push some Brits deeper into poverty.

He continued: “It will also fuel illicit trade, costing the Treasury billions of pounds in lost revenue.”