Chancellor of the exchequer Rachel Reeves is considering raising the tax on vaping products in her budget on 30 October.

The Guardian has reported that Reeves is increasing tax following results of a consultation carried out by the last Conservative government. A tax had already been announced in previous chancellor Jeremy Hunt’s budget in March, due to take effect in October 2026.

“The tax is proposed to be applied to e-liquids at varying rates depending on nicotine content,” said Liam Humberstone, technical director at Totally Wicked.

“Zero nicotine e-liquids, e-liquids containing nicotine at less than 11mg/ml, and 11mg/ml or higher will be taxed at £1, £2 and £3 per 10ml respectively. 

“A proposal for the taxation of vape products was announced in the Spring Budget of March 2024.

“This will mean an increase in the retail price of £2.90 for a typical 4-in-1 product, and as much as £4.30 for some auto-fill ‘extended-use’ products.”

Future of vapes to be decided by Christmas, says government

Humberstone added that there could be “potential for unintended negative consequences” from the taxation, including “a significant risk that large numbers of vapers may return to much more harmful smoking”.

However, The Guardian also reported that an increase in the tax on vaping products ‘would probably’ go hand-in-hand with an increase in tobacco duty so as not to encourage people to switch to smoking.

Humberstone continued: “It is also very obvious that the potential for expansion of a pre-existing illegal market cannot be ignored. As we move forward, the focus must remain on balancing the benefits of vaping as a reduced-risk alternative for smokers with the necessity of minimising its environmental consequences.”

The news comes as NHS figures, released 17 October, revealed that one in four children aged 11-15 in England tried vaping in 2023 – up from 22% two years earlier – with almost one in 10 (9%) using e-cigarettes regularly. By comparison, 11% said they had tried cigarettes.

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