Smokers will be hit by higher prices as the Chancellor announced increases in tobacco duty in today's Budget. Meanwhile, the price of alcohol will rise next week.

From 6pm tonight the tax on all tobacco products will rise by 5% above the retail prices index (RPI) measure of inflation.

This means smokers will pay on average 37p pence more on a packet of 20 cigarettes.

Chancellor George Osborne said: "Smoking remains the biggest cause of preventable illness and premature death in the UK.

"There is clear evidence that increasing the cost of tobacco encourages smokers to quit and discourages young people from taking it up."

The Chancellor confirmed planned rises in alcohol duty will go ahead.

The price of booze will increase by 5% from 26 March.

Camra, the Campaign for Real Ale, says the announcement will lead to the price of a pint increasing by between 5p and 10p in pubs and means beer duty has risen by more than 40% since 2008.

The British Beer and Pub Association says the average new price of a pint of lager will be £3.17.