April's 3 pence + rise on duty

The April increase, as set by Alistair Darling in his last budget and unchanged by George Osborne, is to be one penny plus inflation, based on the RPI. The latest RPI figure from the Office of National Statistics shows RPI turning up to 4.7%.

The increase will follow the 0.76 pence rise on January 1, taking duty to 58.95 pence. We have made clear to the Treasury that further 3 pence would be unacceptable at the best of times but is all the more so in the current business climate and following the spate of other increases. It will mean duty will have risen by well over 20% in 28 months.

We expect growing public opposition to the rise from the public, who have also been hit by the VAT rise. Meanwhile, the RHA has had extensive coverage on the duty issue over the holiday period.