There is an old adage in the financial markets which says that when all the economists, all the pundits and all the professionals say the market will go one way, it invariably goes the other way!
On 1st December the Chancellor, in his infinite wisdom, decreased the rate of VAT by
2 1/2 % and increased the rate of duty on wine by 8%.
The effect of this is that cheap wine is now more expensive and expensive wine is now cheaper.
This is due to the fact that duty is a fixed amount per bottle and VAT is a percentage.
The cut-off point is approximately £6.50 for still wines and £8.50 for sparkling wines. For example, for still wines under £6.50 you are paying more in tax, and for still wines over £6.50 you are paying less in tax.
Combine this with the collapse of the Pound in November and you will find that the best deals around at the moment are the current stocks of wines from Euro-based countries (France, Italy, Spain etc.) in the £8-plus per bottle price range. When the new stock is brought in (+/- Easter) it will be 20% - 30% more expensive!
So, if your budget can bear to keep a few cases of wines you should not hesitate to do so. You can only win in the long run.
Please have a look at our website. This link will take you straight to our wine list.
(We can take payments online, by telephone and by cheque but cheques take a long time).
And... if all those pundits get it wrong, and we are not in for the worst year for goodness knows how long, we could be in for a good run of investment in quality items again. Whatever the item.
Best wishes and a HAPPY and HEALTHY 2009!
Amanda and Susanne