Wine prices are set to rise by as much as 10% as a result of the combined impact of the fall in the value of the pound and inflation, according to the Wine and Spirit Trade Association (WSTA).
The body has now urged the government to stem any further hikes in its upcoming budget.
According to WSTA figures the average-priced bottle of sparkling wine is likely to go up 9% (or around 59p), while champagne is predicted to rise by 5%, adding £1 to the cost of a bottle. Still wine looks set to increase by 10%, equating to an additional 53p per bottle.
WSTA says the UK alcohol industry is one of the most heavily taxed in Europe with UK wine drinkers paying 68.4% of all wine duties collected by all 28 EU member states, despite accounting for only 11% of the population. The total duty on a bottle of still wine sits around £2.08, equating to around 55% of the average-priced bottle.
Miles Beale, chief executive of the WSTA said: ‘With Brexit costing 29p per bottle and rising inflation indicated by the Bank of England last week adding a further 17p, further duty rises could make it a triple whammy for consumers who are already paying a staggering amount of wine and spirit duty.
‘There is now less than a month to go before the Chancellor unveils his Budget – we are urging Philip Hammond to recognise the monumental challenge facing an industry that supports 270,000 jobs and contributes £19.9bn to the economy by making a 2% duty cut.’
