Major vaping tax changes announced in budget as date for new price rise confirmed

Vapers are set to feel the pinch as a new tax on e-liquids has been unveiled in the Budget. Chancellor Rachel Reeves has scrapped previous proposals for a tiered tax system based on nicotine content and instead opted for a "flat-rate duty" on vaping liquids.

From October 1, 2026, vapers will pay £2.20 more per 10ml bottle, irrespective of the liquid's strength. This represents more than a twofold increase over previous expectations for those using nicotine-free options, but it offers some relief to individuals using stronger concentrations.

Previously, Jeremy Hunt, while serving as Chancellor, floated plans in March for introducing an "excise duty" that would vary according to the nicotine level in vaping products, coming into effect from October 2026. The old scheme set a rise by £1 for a 10ml bottle of nicotine-free e-liquid, whereas high nicotine bottles (11mg or above) were facing an increase of £3.

Anti-smoking advocates cautioned that such a staggered approach may deter smokers from switching to vape products with higher nicotine concentrations that could aid in quitting smoking. After taking note of these concerns, Ms Reeves has now confirmed a uniform tax rate across all variations of nicotine strength.

The Chancellor has outlined new measures, including a rise in the cost of cigarettes. She announced the continuation of the tobacco duty escalator at Retail Prices Index (RPI) plus 2%, and an increase in duty on hand-rolling tobacco by 10% this year, reports the Mirror.

Ms Reeves also mentioned "an additional one-off increase" of £2.20 per pack of 100 cigarettes or 50g of tobacco, coinciding with the introduction of a flat-rate duty on all vaping liquids next year, "to maintain the incentive to give up smoking". The Labour government is set to carry on the previous Conservative government's efforts to tackle the surge in vaping among youngsters.

In the King's Speech, Labour presented the Tobacco and Vapes Bill, aiming to regulate vape flavours, packaging, and display to prevent these products from being marketed to children. Retailers selling tobacco and vape products will face fines, with enforcement authorities empowered to issue Fixed Penalty Notices.

While the Bill will apply throughout the UK, specific measures will differ between countries. However, anti-smoking advocates and health professionals caution that any restrictions on vaping should consider its role in aiding smoking cessation, as e-cigarettes are significantly less harmful than traditional cigarettes and have proven effective in helping smokers quit.