The price of a cigarette pack has risen again after the UK government increased tobacco duty.

Labour raised the tax on tobacco products from 1 October this year, ahead of today's Budget.

Cigarettes now increase in line with the Retail Price Index inflation plus an extra 2 percent, the usual annual rise.

HMRC estimates this adds £1.21 to the cost of a standard packet of 20 cigarettes.

In addition, the duty has risen by £2.20 for every 100 cigarettes, or 50 g of tobacco.

The ONS reported the average price of a 20-cigarette pack in September was £16.18.

The tobacco duty hike has been effective since 1 October.

Elsewhere in today's Budget...

  • Millions of workers will get pay rises in April next year as minimum wage set to rise by 3.9%
  • Fuel duty was frozen and the Chancellor kept the 5p discount
  • Labour committed to hit 3% of spending on defence by 2030
  • Brits in council tax bands A to D will get £100 off their energy bills
  • Machine games duty rose from 20 to 25%
  • Gas standing charges were scrapped by Labour
  • Ukraine will receive an extra £10bn from Britain
  • Millions of pensioners to pay tax for first time - while some shielded
  • The Chancellor has announced he will slash £800m of red tape for businesses
  • The surcharge on bank profits above £100m from 3% to 6%

The government raises tobacco product prices each year to discourage use.

Normally the Chancellor announces the rise on Budget day and it takes effect that evening.

This year the increase came into force earlier, as the government moved the annual hike forward to coincide with a new tax on vaping.

Both taxes were aligned to keep smoking costs higher than vaping, encouraging a switch to vape products.

Under the new law, a flat rate tax of 22p per millilitre will be added to vaping liquid, regardless of nicotine content.

A typical 10 ml bottle of e-liquid could therefore see an extra £2.20 in duty.

Tobacco duty is levied on companies that make or import cigarettes in the UK.

When the duty rises, the extra cost is passed to shoppers, who pay more in stores.

Last year, cigarettes rose in the Budget by the RPI inflation rate of 3.66% plus an added 2%.