Fuel duties are frozen for a further year, with the temporary 5p/litre reduction that was first introduced in March 2022 being extended until the end of 25/26. The previously planned inflationary increase in duties has also been shelved.
Alcohol duties will be reviewed to support the hospitality industry by reducing by 1p/litre the duty on draught products with less than 8.5% ABV. Other alcohol duties will increase by RPI. All these changes will take effect from 1 February 2025.
Air passenger duties will increase from 26/27 by:
- £1 / passenger for domestic economy flights, or £2 for non-economy
- £2 / passenger for short-haul economy flights, or £4 for non-economy
- £12 / passenger for long-haul economy flights, or £28 for non-economy
The premium rate of air passenger duty for private jets will increase by a further 50% in 26/27, bringing the rates to between £142 for domestic flights to £468 for ultra long-haul flights.
Tobacco duties will increase by RPI + 2%, with a further increase for hand rolling tobacco of 10%. A new vaping products duty will be introduced from 1 October 2026 at a rate of £2.20 per 10ml of vaping liquid and will be accompanied by an equivalent increase in tobacco duty.
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