Budget 2011: Tobacco and alcohol duties increase
The previously announced alcohol duty rise will go ahead with the tax increasing by 2% above inflation as of midnight on Sunday.
The hike was originally put in place by the previous government.
Meanwhile, tobacco duty rates will also rise by 2% above inflation, effective as of 6pm tonight.
Chancellor George Osborne also pledged to reform the tobacco duty regime to narrow the gap between the lower-cost brands and the others.
One step will be to increase duty on hand-rolling tobacco by a further 10%.
In addition, from 1 October 2011, the government will introduce an additional duty on high-strength beers, and a reduced rate of duty on lower-strength beers to encourage their production and consumption.
The government said this "will reduce the health and social harms resulting from problem drinking, and is designed to avoid unfairly penalising responsible drinkers".
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).