Date vape prices are set to increase as tax changes confirmed

Vapers will be hit by a new tax with the costs of e-liquids to increase by £2.20, it has been announced in the Budget.

Chancellor Rachel Reeves has ripped up a plan to impose taxes on vaping e-liquids depending on their nicotine strengths. She has instead announced a "flat-rate duty" of £2.20 per 10ml of vaping liquid, no matter their strength, that will come into force from October 1 2026. It is more than double the increase those who use nicotine-free liquids were originally facing, but a cut for those who use higher strength liquids.

In March, then Tory Chancellor Jeremy Hunt announced plans for vapers to be hit by a new "excise duty" from October 2026. Under the plan, taxes would vary depending on how much nicotine is in the e-liquid, with a 10ml bottle of nicotine-free e-liquid set to go up by £1 compared to a bottle with 11mg or more of nicotine set to increase by £3.

But anti-smoking campaigners warned the tiered system may put off smokers who need high strength nicotine products to help them quit. Listening to their demands, Ms Reeves has now announced plans for the same rate of tax to be imposed across all nicotine strengths.

The Chancellor set out the plans alongside an announcement to hike the price of cigarettes. She said she will renew the tobacco duty escalator at Retail Prices Index (RPI) plus 2% and will increase duty by 10% on hand-rolling tobacco this year. Ms Reeves said there will also be "an additional one-off increase" of £2.20 per 100 cigarettes of 50g of tobacco when the flat-rate duty on all vaping liquid is introduced next year "to maintain the incentive to give up smoking".

The new Labour government has vowed to continue the former Tory government's momentum in cracking down on vaping after a boom in kids picking up the habit. In the King's Speech, Labour introduced the Tobacco and Vapes Bill. The legislation will regulate the flavours, packaging and display of vapes to stop vapes and other consumer nicotine products from being "deliberately branded and advertised to appeal to children". Shops who sell tobacco and vape products will be fined with enforcement authorities given the power to issue Fixed Penalty Notices. The Bill will extend across the UK, although measures will vary in different countries.

But anti-smoking campaigners and health experts have warned that any clampdown on vaping must be balanced with its benefits in helping people quit smoking. Evidence to date shows that e-cigarettes are substantially less harmful than cigarettes and can be effective for helping people quit smoking.