Autumn Budget 2024: Alcohol and Tobacco Duty Changes

The Autumn Budget 2024 brings significant updates to duty changes for alcohol and tobacco products, as announced by the Chancellor. Here’s a summary of the key changes and how they might impact you:

• Tobacco Duty Changes: Effective from 6pm on 30 October 2024, tobacco products have seen a 2% increase above inflation (based on RPI). Additionally, the duty on hand-rolling tobacco was increased by an additional 10%, narrowing the gap between hand-rolling and cigarette duties.
• Alcohol Duty Changes: Starting 1 February 2025, Alcohol Duty rates for non-draught products will increase in line with Retail Price Index inflation. On a more positive note for beer enthusiasts, the government will reduce the duty rates for draught products by 1.7% in cash terms (or 5.1% compared to RPI expectations). As a result, the average pint (4.58% ABV) will cost about 1 penny less in duty.
• Vaping Product Duty: The Autumn Budget 2024 also introduced a new flat-rate duty of 22p/ml on vaping products, effective from October 2026. This will be coupled with a one-off increase in tobacco duty to maintain incentives for switching from smoking to vaping.

These Autumn Budget 2024 duty changes reflect the government’s continuing effort to balance revenue generation with public health outcomes.