The cost of a packet of 20 cigarettes is set to rise in the United Kingdom by 19 pence (US$ 0.31) from December 1, 1997, due to a tax increase announced by the new Labour government

Action on Smoking and Health (ASH), an anti-smoking group, estimated that the price increase would lead to a reduction in smoking of 2.2 billion cigarettes a year and give the treasury an extra £ 690 million. Representatives of the Fair Cigarette Tax Campaign said the increase meant tax on cigarettes was now 80 per cent on a typical pack of £ 2.63. The move was welcomed by health campaigners and criticised by the tobacco industry; the Tobacco Alliance, which represents 26000 independent cigarette retailers, said that a further tax increase will boost “legal” cigarette smuggling from other EU countries.