Table 1.

Tobacco-related tax changes and inflation during the study period

	Budget stipulated tax changes81–87			Tax rates36 88				Inflation: 12 month % changes*89
	All tobacco	FM only	RYO only		FM		RYO
				VAT†	Ad valorem	Specific	Specific
				% pack price	% pack price	£ per 1000 sticks	£ per kg	CPI	RPI
Budget enactment
22 April 2009	2% increase			15.0	24.0	114.31	124.45	2.3	−1.2
24 March 2010	1% above inflation‡			17.5	24.0	119.03	129.59	3.4	4.4
23 March 2011	2% above RPI	Ad valorem: 24%–16.5% Specific: 25% above RPI	+10% (total 12%) above RPI	20.0	16.5	154.95	151.90	4.0	5.3
21 March 2012	5% above RPI			20.0	16.5	167.41	164.11	3.5	3.6
20 March 2013	2% above RPI			20.0	16.5	176.22	172.74	2.8	3.3
19 March 2014	2% above RPI§			20.0	16.5	184.10	180.46	1.6	2.5
18 March 2015	2% above RPI			20.0	16.5	189.49	185.74	0.0	0.9

*Although the RPI (a measure of private household spending from survey data) is still employed in relation to tobacco taxation changes,⁹⁰ it was de-designated as a national statistic in March 2013 (10) and replaced with the CPI which meets international standards and is comparable with other European countries.⁹¹ The RPI, unlike the CPI, includes housing costs, is more volatile than the CPI and rises more quickly.⁹²

†VAT (a sales tax) changes did not occur on budget days.⁸⁸ Changes occurred as follows: 01.01.2010 (17.5%), 04.01.2011 (20%).

‡2% above inflation for next 4 years.

§2% above inflation until end of next parliament.

CPI, Consumer Price Index; FM, factory made; RPI, Retail Price Index; RYO, roll your own; VAT, value added tax.