The price of wine in the UK has increased as the country’s inflationary rise in wine duty came into effect on 1 February.
Wine was singled out by Chancellor Philip Hammond during the UK’s 2018 Autumn Budget, while other alcohol products saw a duty freeze in a move to support the country’s pubs.
As a result of the 3.1% inflationary rise, the price of a bottle of wine has gone up by £0.07, sparkling wine by £0.09 and an average priced bottle of fortified wine by £0.09. This does not include VAT which would add a further 20% to the wine duty rise.
The Wine and Spirit Trade Association (WSTA) warned that the increase in wine duty “will stifle growth of the flourishing English wine industry” and “stifle business’s ability to invest and grow”.
The association added that if the UK crashes out of the European Union (EU) without a Brexit deal, tariffs on EU wines alongside the duty increase “would add an extra £0.20” to the price of a bottle of wine.
Miles Beale, WSTA chief executive, said: “As of today, the duty rate on still wine has increased by £0.07 to £2.23, and on sparkling by £0.09 to £2.86. This is as a result of the Chancellor singling out wine for an unfair duty increase in last October’s Budget.
“This comes at a particularly bad time for the UK wine industry – the threat of a no-deal Brexit is still on the table with the Government continuing to refuse to rule out leaving the EU without a deal on 29 March. If this happens and the UK does leave without a deal, tariffs on wine from the EU will apply, meaning wine prices will rise by £0.20 per bottle for still wine and £0.37 for sparkling wine.
“These price rises are a direct result of the Government’s refusal to back the UK’s wine industry – which supports 190,000 UK jobs – and its active decision to pass on a punishing duty rise; and the Government’s inability to resolve the UK’s trading relationship with the EU, from where over half our wine is sourced.
“The WSTA has been consistent in calling for support for the wine industry and for politicians to say #NoToNoDeal. These price rises were entirely avoidable and bitterly disappointing.”
© FoodBev Media Ltd 2019