Cigarette prices going up
The Chancellor also announced an increase in tobacco duty to ensure Brits who vape are not incentivised to return to smoking.
At the Autumn Statement in November, Jeremy Hunt ha already increased tax on all tobacco products by 2 percentage points – apart from hand rolling which increased by more.
Mr Hunt said: “Because vapes can also play a positive role in helping people quit smoking, we will introduce a one-off increase in tobacco duty at the same time to maintain the financial incentive to choose vaping over smoking.”
Hunt abolishes non-dom tax status
Jeremy Hunt has massively scaled back the non-dom loophole that lets rich people avoid tax by basing themselves overseas.
While raising £2billion, it steals one of Labour’s flagship pledges ahead of the election.
He says: “Nigel Lawson wanted to end the non-dom regime in his great tax reforming budget of 1988 which is where I suspect the Labour party got the idea from.
“I too have always believed that provided we protect the UK’s attractiveness to international investors, those with the broadest shoulders should pay their fair share.”
Labour will claim the Tories have run out of ideas – but they will privately be despairing over how to pay for their spending promises now one of their big revenue-raisers has been blown.
Windfall tax on energy companies extended
Jeremy Hunt has confirmed the windfall tax on oil and gas companies will continue until 2029.
The Chancellor said: “Because the increase in energy prices caused by the Ukraine war is expected to last longer, so too will the sector’s windfall profits.”
Prime Minister Rishi Sunak introduced the 25 per cent Energy Profits Levy when he was Chancellor in 2022 as a way to respond to oil and gas companies cashing in record profits.
Scottish Tory leader Douglas Ross has already condemned reports of the extension and even reportedly threatened to resign over it.
He warned Mr Hunt doing so would be the wrong decision as it would not provide the certainty that energy companies need.
HARRY COLE: Rayner fuming with Hunt’s jibe
I thought Angela Rayner was going to leap across the aisle and chin Hunt there after he made a gag about her unusual housing arrangements.
Labour’s deputy leader was fuming and shouting at the Chancellor. Tories loved it while Labour cried “shame”.
Read about Rayner’s property saga here.
Vape tax confirmed
Chancellor Jeremy Hunt has announced a new tax on vaping products in a bid to make them less appealing.
The new “vaping products levy” will be paid on imports and by manufacturers and will apply specifically to vape liquids.
The new rate of tax will vary according to the nicotine content.
He says: “To discourage non-smokers from taking up vaping, we are today confirming the introduction of an excise duty on vaping products from October 2026 and publishing a consultation on its design.”
Drones to respond to crimes
Jeremy Hunt has announced a pot of cash to free up police time – including letter people report crimes via video call, and even using drones as first responders.
He says: “Police officers waste around 8 hours a week on unnecessary admin – with higher productivity, we could free up time equivalent to 20,000 officers over a year.
“So we will spend £230million rolling out time and money saving technology which speeds up police response time by allowing people to report crimes by video call and where appropriate use drones as first responders.”
