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Bad news for UK smokers: cigarettes are about to get a lot more expensive, and sooner than you think.
Chancellor Rishi Sunak revealed in his 2021 budget on Thursday that a tobacco tax hike will be launched as the cost of a 20-pack of cigarettes increases by 88 pence.
This means costs will skyrocket to £ 13.60 – and it’s happening today.
Tobacco taxes tend to go up in the budget – and often do so at 6 p.m. on the same day to avoid bulk purchases.
The latest hike in November 2020 put 22p on a 20-cigarette pack and 65p on a 30g pack of roll-your-own tobacco.
(Image: AFP via Getty Images)
Tobacco taxes are increased with the help of an “escalator”, which last time was 2% higher than RPI inflation (or 4-6% for hand-rolled tobacco).
And British drinkers have had bad news as well, with the price of pints expected to skyrocket by 30p.
Homeowners have warned they will be forced to raise prices by a pint after the Chancellor raised wages in Wednesday’s budget.
It comes after he announced the lowest wages would see their pay rise 6.6% from £ 8.91 to £ 9.50 an hour – which is expected to add on average around £ 1,000 before tax on the annual salary of a full-time worker.
(Image: Getty Images)
Strong alcohol will also be affected by a tariff increase, Sunak said in his 2021 budget.
The chancellor called the alcohol tax system “obsolete” and announced a five-step plan to change it, based on the amount of alcohol in a drink.
This is bad news for spirits lovers, as Mr. Sunak simply pointed out: “The stronger the drink, the higher the rate.
When the UK government’s second budget of the year was announced on Wednesday afternoon, Sunak pledged it would lead to “growth, jobs and debt reduction.”
As the price of a whiskey or vodka increases, less strong alcoholic drinks will be cheaper, making reading enjoyable for anyone who prefers a lighter drink in their room.
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