Budget 2011: Cost of cigarettes to rise by up to 50p a pack

Smokers have been hit by the budget, with tobacco prices up 2% above inflation from . Duty on hand-rolling tobacco was raised by 10%. A packet of economy cigarettes now costs 50p more, while premium brands are up 33p as the government pursues both cash and health objectives. Small shops rely on tobacco sales – they make up a third of a newsagent's trade – and warned the rise in taxes would endanger small businesses by boosting the black market. Ken Patel, a newsagent from Leicester and spokesman for the Tobacco Retailers' Alliance, said: "What we have seen in previous years is that when the government increases tobacco taxes, smokers turn to the black market, where they can buy products at half the price."