Brexit: Prosecco and Champagne prices to go up in 2017 due to higher inflation, weak pound and duty increases

The WSTA is urging the chancellor, Philip Hammond, to make a 2 per cent duty cut in his budget next month.

This Valentine’s Day, UK couples sharing a bottle of sparkling wine or Champagne will pay a hefty £2.67 in duty (Wodicka/ullstein bild via Getty Images)

It’s bad news for all British champagne and prosecco lovers.

The UK’s Wine and Spirit Trade Association has warned on Tuesday that a “triple whammy” of higher inflation, a weaker pound and potential duty increases could push up champagne and prosecco prices in the country by 5 per cent, or £1, and 9 per cent, or 59p per bottle, respectively.

This Valentine’s Day, UK couples sharing a bottle of sparkling wine or Champagne will pay a hefty £2.67 in duty compared to a couple in France who will spend less than 6p, according to the WSTA. French customers pay just 3p duty on a bottle of still wine compared to the £2.08 paid by British shoppers.

“With Brexit costing 29p per bottle and rising inflation indicated by the Bank of England 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,” said Miles Beale, chief executive of the WSTA.

“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 per cent duty cut,” he added.

UK consumer price inflation jumped to 1.8 per cent on Tuesday, marginally missing forecasts for a 1.9 per cent rise, as the slump in the pound since last June's Brexit referendum continues to trickle through to the high street.

Last year, Rowan Gormley, the chief executive of wholesale retailer Majestic Wine, said the industry is battling against the weak pound, which has made importing wine and grapes more expensive. It is “simply a matter of time” before prices are raised, he warned at the time.

“In the long run, all imported products are going to have to reflect the fact that the exchange rate has moved, assuming the exchange rate remains low,” Mr Gormley said.