Tobacco: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the tobacco duty escalator on inflation.
Answered by Dan Tomlinson
The independent Office for Budget Responsibility (OBR) is responsible for estimating the impact of Government policies on inflation. The OBR did not include an assessment on the contribution of tobacco excise duty to inflation in either the October 2024 or March 2025 Economic and Fiscal Outlook.
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