Cigarette prices will not rise after Spring Statement, confirms documents in wake of Labour Party Chancellor’s statement

The cost of a pack of cigarettes will not rise after the Spring Statement, as confirmed by documents following Labour Party Chancellor Rachel Reeves’ statement today. The Spring Statement document clarified that there will be no increase in tobacco duty, as it is typically adjusted annually in the Autumn Budget based on the Retail Price Index (RPI) measure of inflation plus an additional 2%.

While this news may come as a relief to smokers, economists and financial experts have criticized the overall Spring Statement delivered by Chancellor Reeves. Some have expressed concerns about the predicted average inflation rate of 3.2% for the year, which could impact small businesses and consumer spending power. Others have highlighted the challenges faced by businesses in adapting to inflation and upcoming increases in employer National Insurance Contributions (NICs).

Despite the lack of significant announcements in the Spring Statement, there is skepticism about the country’s economic direction, especially with the Office for Budget Responsibility halving the growth forecast for 2025. Critics have questioned the effectiveness of the Chancellor’s policies and whether they will lead to the desired results.

Overall, the Spring Statement may have provided some temporary relief regarding cigarette prices, but concerns remain about the broader economic outlook and the impact on businesses and consumers in the coming months.