RACHEL Reeves has unveiled a huge blow to vapers in her gloomy Halloween Budget.
A new vaping tax and increased tobacco duty were announced by the Chancellor in the Commons this afternoon.
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She confirmed the Government will introduce a “flat rate duty” on all vaping liquid from October 2026.
The tobacco duty escalator will also be renewed for the remainder of this Parliament at a Retail Price Index (RPI) of two per cent.
She said today: “I can confirm that the Government will renew the Tobacco Duty escalator for the remainder of this Parliament at RPI+2%…”
She went on to say they will “increase duty by a further 10% on hand-rolling tobacco this year” and “introduce a flat rate duty on all vaping liquid from October 2026”.
Ms Reeves said this will be alongside an “additional one-off increase in tobacco duty” to maintain the incentive to quit smoking.
“And we will increase the Soft Drinks Industry Levy to account for inflation since it was introduced… as well as increasing the duty in line with CPI each year going forward.
“These measures will raise nearly £1bn per year by the end of the forecast period.”
It comes after new laws were announced this month to prohibit disposable vape sales from June 1, 2025 to protect kids’ health – while rolling tobacco and readymade cigarettes will both go up in price.
The crackdown will also halt the scourge of plastic littering after five million vapes a week were thrown away last year — quadruple the number from 2022.
The Government expects devolved nations in Scotland, Wales and Northern Ireland to implement the same cut-off date.
But refillable vapes will remain available as doctors use them to help people quit smoking.
The move follows mounting fears that more kids are illegally buying disposables, many of which now come in bright packaging with flavours including bubblegum, candy floss and cola.
Budget 2024 breakdown
At today’s Budget, the Chancellor also confirmed there will be “no higher taxes at the petrol pumps next year”.
WATCH RACHEL REEVES ON NEVER MIND THE BALLOTS
But Brits will still suffer from a whopping £40bn in tax rises, including huge hikes to fag and soft drink duties.
But in a major boost for pubs, alcoholic drinks served on draught will benefit from a 1.7% tax cut, taking a “penny off a pint in the pub”.
In a “rabbit out of the hat” moment, millions of workers will benefit from an unfreezing of income tax thresholds in 2028.
PM Sir Keir Starmer is braced for further accusations of “nanny state” interference following a slew of measures, including the proposed outdoor smoking ban.
Health Minister Andrew Gwynne said: “It’s deeply worrying that a quarter of 11 to 15-year-olds used a vape last year.
“That is why we will be banning single-use vapes as we take action to end our throwaway culture.”
A disposable vape sells for £3-£10 depending on the brand, with the total e-cig industry worth an estimated £2.8billion in Britain.
Former PM Rishi Sunak initially announced plans to ban disposable vapes this January.
He acted over evidence showing the number of children using them had tripled in three years.
The number of those taking up the habit across all age groups has ballooned by more than 400 per cent since 2012.
While supportive of Mr Sunak’s plan at the time, Labour did not include a proposed ban in its election manifesto.
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