Bad news for smokers (Picture: Getty)
Smokers and vapers could be about to see their habit become more expensive.
Chancellor of the Exchequer Jeremy Hunt is expected to use next week’s budget to introduce a new levy on vaping.
He’s also set to reduce National Insurance instead of income tax, The Times reports, after official forecasts suggest he’ll have much less money to spend than expected.
Mr Hunt has had to significantly scale back his planned cuts after the UK economy officially entered a recession.
He had been considering a 2p cut in income tax, at a cost of £13.7 billion per year – but he’s had to scrap that as well as plans to cut stamp duty and inheritance tax, as well as extending child benefit to middle-income families.
The main tax cuts expected to be announced by Mr Hunt next week include a one percentage-point reduction in employee National Insurance, costing around £4.5 billion per year, and an extension of the fuel duty freeze which will cost £1 billion.
Jeremy Hunt will announce the spring Budget next week (Picture: Maja Smiejkowska/PA Wire)
In order to drum up more cash, the Chancellor is set to announce a ‘vaping products levy’ to be paid on imports and by manufacturers – an attempt to make them unaffordable for children.
The levy will apply to the liquid in vapes, with more tax paid the higher the nicotine level.
Tobacco duty will also see a one-off increase in the hopes that vaping will remain the cheaper alternative.
Prime Minister Rishi Sunak is currently trying to balance preventing children from taking up vaping, while encouraging adult smokers to switch to vapes, which are considered far less harmful than tobacco.
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It’s hoped both measures will raise more than £500 million a year by 2028-9.
The vape liquid tax is similar to 15 other schemes already in place across Europe, as the EU plans a bloc-wide vaping levy.
There are about six million vapers in Britain, with 22% of people aged 16-24 taking up the habit.
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