Vaping expenses will rise significantly next year following the tax increase confirmed in today’s Autumn Budget.
Chancellor Rachel Reeves used her statement to reaffirm that a new excise duty on e-liquids will come into force from October 2025, marking the most substantial shake-up of vaping taxation since vapes entered the UK market.
According to estimates from vapeshop.co.uk, the price of a standard 10ml bottle of e-liquid will rise from around £3.99 to £6.44 once the new duty is applied. Larger bottles will be hit even harder: a typical 50ml shortfill currently retailing at around £11.99 is expected to jump to £25.20.
The duty rise was first announced in the 2024 Spring Budget, but Reeves’s confirmation ends months of uncertainty for retailers and consumers. The Treasury has also confirmed that all vaping products sold in the UK will need to carry duty stamps – similar to tobacco – in an effort to tighten the supply chain and reduce illicit sales.
Part of a wider crackdown on nicotine
The vaping tax forms part of the government’s broader strategy to raise revenues and reduce nicotine dependency. In addition to the vaping duty, Reeves announced further increases to cigarette taxation: tobacco duty will rise by RPI inflation (3.66 per cent) plus an extra two per cent, pushing the average price of a 20-pack from £16.78 to £17.74.
The measures come after Labour banned the sale of disposable vapes earlier this year, citing concerns over youth uptake and environmental waste. With disposables gone from the legitimate market, refillable devices are now the primary target of new regulatory and fiscal pressure.
Why vaping taxes are rising
The government argues the new levy is intended to balance the tax treatment of nicotine products, bring vaping more in line with smoking, and generate revenue to support public services. The Treasury has been explicit that nicotine products – whether smoked or vaped – cannot remain outside the UK’s wider “health harm” tax framework.
However, public health experts are divided. Harm reduction advocates warn that steep price rises risk pushing smokers back to cigarettes, which are far more harmful, or driving consumers towards the unregulated black market, where product safety cannot be guaranteed.
Impact on consumers and the industry
For everyday vapers, especially those who switched from cigarettes for health or cost reasons, the financial hit will be noticeable. A regular vaper using a 10ml bottle every two to three days will see annual costs rise by over £400.
Specialist vape shops also warn that the price increases could squeeze smaller retailers and undermine progress in smoking cessation efforts. The UK currently has around 4.5 million vapers – the majority of whom are ex-smokers.
