The average cost of a pack of cigarettes is set to go up following after Jeremy Hunt announced that he would raise tobacco duty for the first time since October 2021.

As part of the Spring Budget, the Chancellor announced today (Wednesday, March 15) that tobacco duty would rise in line with retail price inflation (RPI).

This stands at 12.7% currently and an extra 2% minimum rise would also be added on top of that.

INews reports that the RPI measure of inflation includes mortgage interest payments, meaning it is heavily influenced by house prices and interest rates.

How much will cigarettes go up by?

The price of an average 20-pack of cigarettes will increase from £10.65 to £11.80 from 6 pm today, a rise of £1.15.

Additionally, INews reports that larger packets of cigarettes could rise by £2.30 from £15.35 to £17.65 while a 30g pack of rolling tobacco could increase by £2 to £14.90.

Jeremy Hunt said in the Commons that the Government would “uprate tobacco duty, and we will freeze the gross gaming duty yield bands”.

What else was announced in the Budget?

Jeremy Hunt told the Commons that the UK's economy is “on the right track" and that the country will not enter a "technical recession" this year.

He said: “In the face of enormous challenges I report today on a British economy which is proving the doubters wrong.

“In the autumn we took difficult decisions to deliver stability and sound money. Since mid-October, 10-year gilt rates have fallen, debt servicing costs are down, mortgage rates are lower and inflation has peaked.

“The International Monetary Fund says our approach means the UK economy is on the right track.”

Measures announced included pension lifetime allowances being abolished, a freeze on fuel duty, duty on pints being frozen and corporation tax is being increased to 25%.