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.