Hunt's Budget: New Tax On Vaping But Cuts To Ni And Fuel Duty Expected

Jeremy Hunt is preparing to use next week's budget to launch a duty on vaping alongside tax cuts for workers before a general election.

- Richard Partington

The chancellor is expected to announce a "vaping products levy" on manufacturers and importers of the liquid in vapes, Treasury sources said. It is anticipated the costs would be passed on to consumers with the hope that it will make the habit unaffordable for children.

With the government under mounting pressure over its economic record, Hunt is widely expected to use next Wednesday's speech to the Commons to announce a package of tax giveaways before an election anticipated later this year.

However, the Institute for Fiscal Studies said yesterday that Hunt's financial planning was "dubious" and "lacks credibility," as it warned him against announcing tax cuts if he cannot lay out how he will fund them.