In her Autumn Budget, UK Chancellor Rachel Reeves confirmed significant tax increases for tobacco and vaping products as part of the Labour government's strategy to address a £40 billion fiscal deficit. Tobacco duty will rise by the Retail Prices Index (RPI) inflation rate plus 2%, effective from 6pm on November 26, 2025. Additionally, a one-off increase of £2.20 per 100 cigarettes or 50g of tobacco will take effect from October 1, 2026.
A new flat-rate excise duty on vaping liquids was also confirmed. Starting October 1, 2026, a levy of £2.20 per 10ml will apply to all vaping liquids. This measure is expected to significantly increase consumer prices, with some estimates suggesting a 60% rise; for example, a standard vape refill could jump from £3.99 to £6.44.
To combat the illicit trade, the government introduced strict new regulations. From October 2026, manufacturers must pay the Vaping Products Duty on all items released for sale and attach a duty stamp that seals the packaging. Products will also require a QR code for authenticity verification. The Independent British Vape Trade Association welcomed these anti-fraud measures as a way to stamp out rogue traders. Meanwhile, alcohol duty will rise in line with inflation, and remote gaming duty will see a steep increase to 40%.
