Wine prices have skyrocketed across the UK, promising a potentially expensive Christmas ahead for many Britons as some begin to blame Brexit. The average bottle of wine is now £3.50 more expensive than before the country left the EU in 2020, industry experts have claimed, with importers becoming frustrated.
Each shipment bound for the UK is several hundred pounds more expensive, researchers have found, with red tape forcing firms to pass on the costs to their consumers. The research, conducted by the European Movement UK, a pro-EU pressure group, has found wine businesses are struggling to find staff and trade under new restrictions.
The group has called for the Government to seek closer post-Brexit relations with the bloc and cut the red tape constricting trade. UK-based wine retailers have said the country was better off with its previous arrangements, which they said only required “moving” not importing.
But the Government’s recent actions have ensured that Britons won’t have to pay a tax that would have increased wine prices by their highest margin in 50 years. And at the same time, the move will hold general alcohol costs for nearly a year.
Speaking to the New European, Daniel Lambert, the owner of a business that imports millions of bottles of wine per year, said 70 percent of wine sold in the UK comes from the EU.
He said that, while within the bloc, there was no need for importing, just “moving” wine within EU territory. The new red tape requiring wine sellers to import their product has added £3.50 to the average price, the business owner added.
Mr Lambert said: “Paying more for the same bottle of wine is yet another way in which Brexit is hitting the pockets of consumers. Unless we see action from the Government on easing the red tape and trade barriers for our UK businesses, prices will only continue to rise.”
Commenting on the research, Nick Haring, the CEO of the European Movement, told the New European that paying more for “the same bottle” is “yet another way in which Brexit is hitting the pockets of consumers”.
He added: “Unless we see action from the Government on easing the red tape and trade barriers for our UK businesses, prices will only continue to rise.” Data from the ONS shows that the average price of a bottle of red wine currently sits at roughly £7.72, but this would have been higher this year without ministerial intervention.
In his autumn budget on November 22, Chancellor Jeremy Hunt announced a freeze on alcohol duty until August 1, 2024. The duty freeze, which applies across wine, beer, cider and spirits, means alcohol prices will not rise with the Retail Price Index (RPI).
The move means that, when the freeze ends next year, Britons may have to pay even more for their alcohol, whether they are buying bottles straight from retailers or enjoying a drink in the pub. The RPI is currently 8.9 percent, and experts estimate that, when alcohol duty applies in August, the cost of a bottle of wine could rise by up to 68p, while port and spirit costs rise by £1.50 and £1.67.
Experts have blamed rising prices on Brexit, but also supply chain issues relating to the war in Ukraine and even the costs of recycling.
