A pack of cigarettes now costs more than £13 after the Chancellor decided to increase tobacco tax.
The most expensive 20-pack jumped by 88p to £13.60 while the cheapest pack rose by 63p to £9.73.
People have taken to Twitter in frustration, with one calling it ‘ridiculous’.
The most expensive 20-pack jumped by 88p to £13.60 while the cheapest pack rose by 63p to £9.73
Others noted that the price of cigarettes was increasing while taxes on certain alcoholic drinks like prosecco or cider were being lowered.
Another wrote, “So the price of cigarettes is increasing again. Let’s not pretend it’s about health. The fact is that even after considering how much the NHS spends on smoking-related illness and disease, the UK government makes almost 15 billion pounds every year’.
Amanda Wardlaw tweeted, “Have no idea at all what the price of my fags is and I don’t look forward to finding it out.”
A 20 pack of cigarettes now costs more than £13 after the Chancellor decided to increase tobacco tax
Hand-rolling tobacco will increase by RPI plus 6 per cent meaning a 30g bag will now cost over £9.02
People took to Twitter in frustration, with one user branding higher costs ‘as absurd’
The Retail Price Index, which measures inflation plus 2 percentage points, will raise the duty rates for all tobacco products, Chancellor Rishi Unak announced.
The RPI plus 6 percent meaning will see hand-rolling tobacco increase a 30g bag will now cost over £9.02.
RPI plus 3 percent will increase the minimum excise tax. The changes were made at 6 p.m. last night.
Ministers hope the move will reduce smoking.
Pints will continue to get more expensive: Pub bosses warn that the Chancellor’s 5% beer duty cut will only ‘take off’ 30p increase in price as industry is squeezed due to supply chain crisis
- Shepherd Neame CEO Jonathan Neame stated that his firm would accept a 3p-a–pint duty reduction on wholesale sales
- But he stated that pubs are facing pint inflation of 25-30p and that it will only ‘take the cake off’.
- Rishi Sunak also announced that a planned increase in the duty on spirits and wine, cider, and beer would be cancelled
By Rory Tingle, Home Affairs Correspondent, and Jack Maidment (Deputy Political Editor, MailOnline).
Pints will remain more expensive even after the Chancellor cut its five per cent beer duty. A pub boss warned that this would only ‘take out’ a 30-p-per-pint price hike due to rising inflation.
Shepherd Neame’s chief executive Jonathan Neame said that the company would pass on the 3p a pint duty cut on kegs it wholesales to landlords, but that drinkers are unlikely see the benefits.
Pubs are already being hit by rising gas prices, supply chain pressures, and a shortage of bar staff and drivers. More than eight out of ten have raised prices or plan to do so soon.
Today’s anger was also expressed over the fact that the duty cut will only apply to 40l kegs and not the 30l used by craft breweries. Campaigners are worried that big brewers will take advantage of the savings and not pass them on as pubs.
MailOnline reached out to five of Britain’s largest pub chains today to find out if they would pass on the beer duty reduction.
In his Budget, Rishi Sunak also said a planned increase to the duty on lower-strength spirits, wine, cider and beer will be cancelled while the ‘irrational’ 28% duty on fruit ciders premium sparkling wines like prosecco will be cut.
Taxes on Bailey’s (41p per bottle), Gordon’s Gin (9p per can) and Canti prosecco (87.5p per bottle) will be reduced. The tax on Stella and Carling beers will not change in shops, but it will drop by 3p in pubs.
But other beverages will see increases, including Cockburn’s port (£1.09 per bottle), Hardy’s merlot (35p per bottle) and Scottish favourite Buckfast (81p per bottle). It remains to see if retailers pass on any savings.
In addition to the beer duty cut, Rishi Sunak also announced a planned increase to the duty on lower-strength spirits, wine, cider and beer will be cancelled. The tax will increase on certain drinks while decreasing on others.
Yesterday afternoon, Boris Johnson and the Chancellor were joined by Boris Johnson at Fourpure Brewing Co, Bermondsey in London for a publicity stunt. But, eagle-eyed observers noticed that they were lifting 30-litre Kegs. Only 40-litre kegs are exempted from the duty. Brewer founders told the Guardian that the duty cut will only apply to 40-litre bottles.
Responding to Mr Sunak’s Budget announcements, Mr Neame told Radio 4’s Today programme: ‘We will pass on the duty cut at a wholesale, but in all honesty, pubs are facing between 25 to 30p per pint inflation and this will do will take the top off that.
“It will decrease the rate of rise, but there is approximately 14% inflation impacting most hotels businesses, so although I would love to see beer prices drop, it is very difficult to see that since a lot of inflation in terms of energy, food, and other things is still happening.
“At the moment, there are tremendous supply chain constraints that most people anticipate to last for six to 9 months and then hopefully inflation will start to ease.
Most pubs will also benefit from £7billion worth of cuts to business rates, including the cancellation of next year’s increase in the rates multiplier and a 50% cut in the total bill.
Mr Neame supported the move, but said more needed to be done.
He stated that although it won’t benefit Shepherd Neame as a multisite operator, it will benefit our tenanted licees, which account for two-thirds the pubs in our portfolio. It’s a great benefit to them, and it also stimulates investment – rates would go up if you invested.
“I think that the opportunity for fundamental reform of rates has been missed. This is a medieval-style tax that doesn’t balance out the overall economy between digital and nondigital. Too much is being borne by hospitality and retail at this time.
The teetotalChancellor used his Budget for a new Draught Relief Policy that will see cider and beer duty cut by five percent.
He said that it was the largest beer tax cut in 50 years and the largest cut to cider duty ever since 1923.
He also announced that the planned increase in duty on spirits, wine and cider will be cancelled and the ‘irrational 28% duty on premium sparkling wines, such as prosecco and fruit juices, will be cut.
However, the Chancellor’s plan to simplify the alcohol duty system – which he said was made possible by Brexit – will see some drinks become more expensive, with red wine drinkers among those hit.
Mr Sunak stated that the new tax system will apply to stronger drinks. It will be implemented in February 2023.
This will also mean that less-strong drinks such as rose wine and liqueurs will be cheaper, which is a good thing since they are currently ‘over taxed.
Boris Johnson, the Prime Minister, and Mr Sunak attended the Fourpure Brewing Company in Bermondsey. They poured pints and observed the brewing process.
Hospitality leaders welcomed the changes announced Mr Sunak.
They said “pubs, brewers, and beer-lovers”.We will be toasting Chancellor’s for bringing forward a “range of business-boosting steps”.
Emma McClarkin (chief executive of British Beer and Pub Association) stated that pubs, brewers and beer lovers will be celebrating the Chancellor today for a number of business-boosting measures.
‘Pub goers will also be toasting the Chancellor for announcing a five per cent lower duty rate on draught beer worth £62million.
“This is great news for our local pubs, and recognizes the critical role they play in our economy.
“However, the overall beer duty rate for the UK is still among the highest in Europe.
‘It is vital for Britain’s brewers, a world class homegrown manufacturing success story, that the overall beer duty burden is reduced – not just duty on draught beer in pubs.’
Mr Sunak said that under his new system – which be rolled out in February 2023 – the stronger the drink, the higher the rate of tax will be
The Draught Relief, according to the Chancellor, amounts to the largest tax cut on beer in 50-years and the ‘biggest reduction to cider duty since 1923’.
The Chancellor told MPs that the existing alcohol duty system in the UK is ‘outdated, complex and full of historical anomalies’.
He said his overhaul will deliver the ‘most radical simplification of alcohol duties for over 140 years’, resulting in a ‘simpler, fairer and healthier’ system.
Sunak claimed that Brexit made the shakeup possible, and told the Commons that the Government was ‘taking advantage” of the EU’s exit by rolling out a number of changes.
These changes will reduce the number of alcohol duties from the current 15 down to six.
Sunak stated that the new system will be guided based on a common sense principle: “The stronger the drink, and the higher the rate.”
He stated that this means that certain drinks, such as stronger red wines, fortified wine or high-strength white ciders, will see a slight increase in their rates, because they are currently undertaxed due to their strength.
“That is the right thing to say and it will end the era of high-strength drinks that can cause harm to public health and encourage problem drinking.
The Chancellor stated that the “converse is also true” for alcoholic drinks that are less strong.
He stated, “Many lower alcohol beverages are currently overtaxed and have been since many decades.”
‘Rose. Fruit ciders. Liqueurs. Lower strength wines and beers. They will now pay less for these wines and beers.
Mr Sunak stated that UK drinking habits have changed. People are now more inclined to consume sparkling wines because they are cheaper.
He said to MPs, “Over the past decade, consumption of sparkling wine like Prosecco a doubled. English sparkling wine has increased tenfold. They are not the exclusive preserve of the wealthy elite.
“And they’re no stronger than still wine, so I am going stop the irrational 28% duty premium they currently pay.
“Sparkling wines from any region will now be subject to the same duty as still wines with equivalent strength.”
Tory MPs pressured Mr Sunak into assisting struggling pubs.
Many Conservative MPs had called for a reduction of beer duty. Mr Sunak responded by announcing his new ‘Draught Relief’ policy.
Hospitality bosses praised the changes, saying that beer drinkers, brewers, pubs and other establishments would be toasting the chancellor for introducing a ‘range business-boosting measures.
Tax bills for bottles of Rose wine will be reduced by 23p The tax on a bottle Echo Falls Zinfandel Zinfandel will be 23p less
He stated to the Commons that a fairer and healthier system supports pubs, so I can announce today Draught Relief.
Draught Relief will apply an updated, lower rate for cider and draught beers.
“It will apply for drinks served from draught vessels over 40 litres. It will be especially beneficial to community pubs, which do 75 percent of their business on draught.
“And let me tell you the House the new rate: Draught Relief will reduce duty by five percent.
“This is the biggest reduction in cider duty since 1923, it is also the largest reduction in fruit ciders in a generation, and it is also the largest reduction of beer duty for 50+ years.
‘This is not temporary, it is a long term investment in the British pubs of £100million a year and a permanent cut in the cost of a pint of 3p.’
He said, “These reforms are urgently needed and will be implemented in February 2023.”
Miles Beale is the chief executive officer of the Wine and Spirit Trade Association. He welcomed the decision to freeze wine and spirit duty.
He said: ‘The decision to freeze wine and spirit duty comes as a huge relief to British businesses, the hospitality sector – including its supply chain – and consumers, giving everyone a much-needed break to help them recover from the pandemic.
We are grateful to Rishi Sunak, ‘Chancellor’, for listening to us and understanding that tax increases are not the best way for the sector to be revived.
‘By offering continued respite to the UK wine and spirit sector his actions will help save jobs and – in time – replenish revenues to the Treasury through growth in our potential-filled sector.’
Jez Lamb, founder of Beers@No.42, Wirral-based craft beer market, questioned if the shakeup would be beneficial to smaller breweries.
He said: ‘The devil’s always in the detail. It’s amazing to see alcohol duties reduced on draught beers, but this is only for containers greater than 40L.
“This is great for big breweries, but many small craft breweries only have 30L containers.
“This just further supports big players in this market, not supporting smaller, independent breweries that need support most.”