Danish toy manufacturer says it is not ruling out further increases if sterling does not recover from post-Brexit vote plunge

Lego is to raise its prices in Britain by 5% next year as it becomes the latest manufacturer to respond to the plunging pound after the UK voted to leave the EU.

The Danish firm confirmed it had decided to to hike the prices of its playsets, bricks and mini-figures in the UK owing to “currency fluctuations”, while not ruling out further increases if sterling does not recover.

A letter shared on social media this week from a senior Lego executive to UK toy retailers revealed that prices would increase across the board from 1 January.

Signed by Lego UK and Ireland’s general manager and vice-president, Fiona Wright, it explained that the hike was a “direct result of the continued devaluing of the UK pound”. The letter went on to warn that the company might be forced to put up prices again in the “event of further negative trend”.

It means that a Star Wars Lego Death Star set, currently priced at £399, will go up by £20 next year, while a Doctor Who Lego will rise by £2.49 to £52.48.

A spokesperson for the company said: “As communicated to our retailers, The Lego Group will raise prices in the UK, due to currency fluctuations.”

Lego said that while it was raising the prices it charged retailers to stock its products, it was up to stores to decide if they passed on the increase to customers or absorbed it themselves. Its Star Wars Rebel U-Wing Fighter playset (which would go up to £73.50 next year) is among UK’s best-selling toys, according to Toy Retailers Association.

The latest manufacture to signal rising costs, Lego is privately owned and based in Billund, Denmark. It is controlled by the founding Kristensen family, which has a 75% stake. The company recently confirmed the appointment of a British chief executive and opened its biggest flagship store in Leicester Square, London.

Since the EU vote in June, the pound has plummeted by about 16 % against the dollar and by 9% against the euro, forcing manufacturers to signal or introduce price rises. A string of major food brands have already sought increased prices from supermarkets as the fall in the pound has driven up the cost of importing ingredients and other essentials, such as packaging.

Economists expect this scenario to squeeze household budgets with inflation tipped to creep towards 3% over the next 12 months.









