Chancellor Rachel Reeves is considering raising the tax on vaping products in the upcoming autumn budget.
The vaping products levy was first introduced by ex-chancellor Jeremy Hunt in the spring budget earlier this year. Due to come into effect in October 2026, the tax will introduce a levy of £1-3 per 10ml of vape liquid, depending on the nicotine level of the product.
The tax was introduced by the Conservative government to encourage smokers to switch to less harmful alternatives and discourage vaping among children.
This comes as new data from NHS England revealed that almost one in 10 (9%) secondary school children vape regularly.
An increase to the vaping products levy is expected to be announced alongside an increase in tobacco duty – this will avoid encouraging vape users to switch to smoking.
Together, these levies are predicted to raise £120 million by 2027 and £445 million by 2029, according to treasury analysis.
‘May put off smokers’
Hazel Cheeseman is chief executive of the charity Action on Smoking and Health (ASH). She said: ‘We opposed higher rates of tax on stronger nicotine liquids for the very reason that they are a smoking cessation tool and higher prices may put off smokers who need high strength products to quit.
‘A flat rate would be welcome.’
Chris Thomas, a research fellow at the Institute for Public Policy Research, said: ‘It is right that the government considers new taxes designed to disincentivise or penalise industries and products that harm health while creating revenue to invest in health creation.
‘We estimate health levies on alcohol, tobacco, vapes, junk food and gambling could raise as much as £10 billion by the end of the decade.
‘A tax on e-cigarettes needs to balance their use as a stop smoking device against their current disproportionate appeal to children. However, there are signs that the e-cigarette market will manage to bypass the ban on disposables – and maintain the presence of colourful vapes at pocket money prices.
‘This gives the government scope to consider a higher level of vape duty than that proposed by the last government – to ensure vapes become harder to access for kids, but are still accessible for adults who would benefit from them.’
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