Cigarettes (Hansard, 20 February 1984)

§ Mr. Jessel
asked the Chancellor of the Exchequer what have been the increases in cigarette duties in each of the last 20 years; and what was the effect in each case on (a) prices and (b) numbers smoked.

§ Mr. Hayhoe
The information is given in the table following. The figures for duty and price changes show the immediate impact of the budgetary or regulatory measures in each year on typically priced standard tipped cigarettes. The effects of manufacturers' own price increases on the ad valorem component of the excise duty, chargeable on cigarettes since 1976, are excluded.
Numbers of cigarettes smoked are derived from official delivery statistics which have been collected only since 1976. It is not possible to measure the impact of duty increases on quantities consumed since other factors influence consumption.
372W

Cigarette duty and price increases and cigarette deliveries

Duty increases^* priced standard on 20 typically tipped cigarettes Cigarette deliveries

(per cent.) Impact on prices including VAT (pence) (billions)

1964 7.7 1

1965 14.3 2

1966 Nil Nil

1967 Nil Nil

1968 (March) 6.3 1

1968 (November) 5.9 1

1969 Nil Nil

1970 Nil Nil

1971 Nil Nil

1972 Nil Nil

1973† -19.4 -1

1974 34.5 5½

1975 33.3 7

1976 7.7 2

1977 (January) 12.5 2½ 124.9

1977 (April) 9.5 2½

1978 Nil Nil 125.7

1979 8.7 5½ 124.5

1980 12.3 5 122.0

1981 (March) 30.2 14 109.8

1981 (July) 5.5 3

1982 8.3 5 102.4

1983 5.4 3 102.6

^* Estimated before 1978 because excise duty was until then charged on leaf tobacco used in manufacture and not exclusively on finished products.

† Excise duty was reduced on 1 April when VAT was introduced.

§ Mr. Jessel
asked the Chancellor of the Exchequer how the price of cigarettes has changed in relation to prices generally over the past 20 years.

§ Mr. Hayhoe
A comparison between an index of the typical retail selling price of standard tipped cigarettes— the most popular type of cigarettes until the mid-1970s — and the retail prices index (all items) is as follows:

(1964 = 100)

Standard tipped cigarettes RPI (all items)

1964 100 100

1965 112 105

1966 112 109

1967 112 112

1968 117 117

1969 127 123

1970 127 131

1971 127 143

1972 129 154

1973 129 168

1974 156 194

1975 205 242

1976 220 282

1977 268 326

1978 268 353

1979 322 401

1980 356 473

1981 434 529

1982 493 574

1983 527 601

Cigarette duty and price increases and cigarette deliveries
	Duty increases^* priced standard on 20 typically tipped cigarettes	Cigarette deliveries
	(per cent.)	Impact on prices including VAT (pence)	(billions)
1964	7.7	1
1965	14.3	2
1966	Nil	Nil
1967	Nil	Nil
1968 (March)	6.3	1
1968 (November)	5.9	1
1969	Nil	Nil
1970	Nil	Nil
1971	Nil	Nil
1972	Nil	Nil
1973†	-19.4	-1
1974	34.5	5½
1975	33.3	7
1976	7.7	2
1977 (January)	12.5	2½	124.9
1977 (April)	9.5	2½
1978	Nil	Nil	125.7
1979	8.7	5½	124.5
1980	12.3	5	122.0
1981 (March)	30.2	14	109.8
1981 (July)	5.5	3
1982	8.3	5	102.4
1983	5.4	3	102.6
^* Estimated before 1978 because excise duty was until then charged on leaf tobacco used in manufacture and not exclusively on finished products.
† Excise duty was reduced on 1 April when VAT was introduced.

(1964 = 100)
	Standard tipped cigarettes	RPI (all items)
1964	100	100
1965	112	105
1966	112	109
1967	112	112
1968	117	117
1969	127	123
1970	127	131
1971	127	143
1972	129	154
1973	129	168
1974	156	194
1975	205	242
1976	220	282
1977	268	326
1978	268	353
1979	322	401
1980	356	473
1981	434	529
1982	493	574
1983	527	601