Smokers were clobbered as George Osborne used so-called “sin taxes” to help fill the Treasury’s coffers.
Duty on tobacco will now go up by five per cent above inflation rather than two per cent — hitting poorer smokers particularly hard.
It will add 37p to a pack, pushing the typical price for 20 premium cigarettes towards £7.50.
The tobacco industry condemned the move as counter-productive, claiming it would worsen the problem of smuggling — which already costs the Treasury billions of pounds in lost revenue.
But it will cheer anti-smoking campaigners, who highlight the cost of cigarettes to the NHS.
Drinkers also suffered as beer, cider, wines and spirits rose by two per cent above inflation in line with the duty escalator introduced by Alistair Darling in 2008.
It will push the average cost of a bottle of wine over the £5 mark and the typical price of a pint of beer in London pubs close to £4.
Campaigners fear higher alcohol taxes will force more pubs out of business and are worried about the possibility of minimum pricing.
Drivers were disappointed as the 3p rise in fuel scheduled for August will go ahead as planned, despite motoring groups’ pleas. Treasury sources insist that previous action taken by the Chancellor means petrol is 10p cheaper than it would have been under Labour’s plans.
The Budget rise is likely to force the average price of unleaded over 140p a litre, leaving drivers paying £84 to fill up a 60-litre tank.
The Centre for Economics and Business Research recently said a modest cut in fuel duty of 2.5p per litre would create 180,000 jobs.
