Spring Statement 2026: Cigarettes and alcohol value rise choice confirmed
Rachel Reeves delivered an update on the economy in the House of Commons today – but did it include any changes to cigarette and alcohol prices?
Drinkers and smokers were spared during the Spring Statement today as no rises to so-called sin taxes were announced today.
Rachel Reeves delivered an update on the economy in Parliament today – but as the Chancellor had previously only committed to one big fiscal event a year, no significant tax changes were confirmed.
But drinkers and smokers have already been hit with tax increases in the last few months. Alcohol duty rose by 3.66%, in line with RPI inflation, at the beginning on February.
This added 11p on a bottle of Prosecco, 14p on a bottle of red wine and 38p on a bottle of gin, according to the Wine and Spirit Trade Association.
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Last year, drinkers faced a 3.6% hike to alcohol duty, while draught duty was cut by 1.7%, or a penny off a pint. At the same time, a new system was introduced that saw wine taxed by strength.
Meanwhile, tobacco duty rose by RPI inflation plus two percentage points following the last Budget in November. Vapers are also set to be hit with a £2.20 duty on liquid come October 2026.
There will also be an identical increase of £2.20 per 100 cigarettes in tobacco duty to “maintain the financial incentive to switch from tobacco to vaping”.
