Britain is about to face its first Christmas after the public voted to leave the European Union. But how will this “Brexit” vote impact our Christmas spending?

Since the June referendum, the value of the pound has significantly depreciated. Although this makes our exports cheaper abroad, British citizens may see an increase in the cost of Christmas expenditures. The BMG Research Survey showed that six in ten adults believe this cost will rise (17% predict by £100 or more), and out of Brexit voters just under half think their Christmas will be more expensive. These views can be narrowed down to the fall in the value of Pound Sterling, caused by uncertainty about the future of a post-Brexit Britain, affecting the prices of imports into the UK. Whether it’s sparkling lights from China or baubles from India, our imports of such goods will be more expensive than last year due to the depreciation of our currency.

With this said, our home-grown Christmas tree industry is set to boom this winter because of the Brexit vote. Farm owners are stating that the fall in the value of the Pound has caused the prices of their Christmas trees to rise 15-16%, resulting in local farmers having more profitable business and being able to meet the high demand. This industry sells between 6 and 8 million British trees each year in the UK and provides a strong basis for growth in the British Christmas economy.

In spite of this, a key aspect of our Christmas festivities may be harmed by the Brexit future: Christmas markets. Across the country, stallholders set up shop in local Christmas markets providing goodies such as wooden toys and pretzels. Already, Birmingham’s Frankfurt Christmas market will open this Thursday with 8 stalls fewer than last year, even extending their stay to December 29th to make their trip worthwhile. The depreciating Pound will only reduce these stallholders’ profits and their incentives to come each year.

The main issue facing these stallholders, however, will be the extra cost and paperwork in a post-Brexit Britain. If Europeans lose their right to free movement into the UK and the UK government imposes work visas or permits, these stallholders “may just find it more hassle than it is worth” according to Professor Philip Booth, an academic and research director at the Institute for Economic Affairs. These traders may locate in other EU countries in preference to the UK in order to avoid such costs.

The prospect arises for British businesses to take advantage of this. We may find a boost in local traders using the opportunity to replace European Christmas markets with a more British vibe. This would create jobs and chances for British entrepreneurs to utilise the shopping boom in the Christmas period.

So the future of our British Christmas will depend on the terms laid out in Brexit. But one thing is for certain, this year’s Brexmas will be very merry indeed!