English Wine Production

11:00:00

I beg to move, That this House has considered English wine production. It is a pleasure to serve with you in the Chair, Dame Siobhain. I am grateful for the opportunity to bring forward this debate at a timely moment: the middle of English Wine Week. The theme this year is creating new traditions, and I cannot think of a more fitting description for the English wine industry as it stands today. It is a sector that combines modern ambition with rural heritage, and world-class expertise with local entrepreneurial spirit. It is a sector that is growing, not only in economic potential but in the public imagination. As one of my local winemakers puts it, English wines tend to have a steely, citrus backbone. I like to think that this is an apt description of our nation’s character too: resilient, bright and quietly distinctive. English wine is increasingly a source of national pride, and we should be doing everything we can to support and protect it. The industry is growing fast, and the Government should be helping rather than hindering. In 2023, UK vineyards produced over 21 million bottles of wine—a new record—and it is exciting that sales of English wine continue to buck wider market trends. Domestic wine sales were up 10% in 2023. Sales of UK sparkling wine have nearly trebled since 2018, from roughly 2 million bottles to over 6 million. Similarly, sales of still wine have more than doubled over the same period. We should all be toasting that success.

I commend the hon. Lady for securing this debate. Northern Ireland does not produce any of its own wine; we do not have the necessary climate. We could use European Union grapes to make wine, due to Brexit regulations—but that is by the way. What can we do in Northern Ireland to ensure that English wine is something that we like to have? How can it be promoted, not just in England but in Scotland, Wales and Northern Ireland? Why not buy British, as we should?

The hon. Gentleman is a fantastic champion of our Unionist and one nation principles. The best thing that our friends, brothers and sisters in Northern Ireland can do is to purchase English wine and drink it. That is a win for all concerned. British wines are now exported to 45 different countries. There are healthy markets in Norway, Japan, America, Sweden, Finland, Switzerland, the Netherlands, Hong Kong and South Korea, to name but a few. We now have over 1,100 registered vineyards and more than 240 wineries.

One of those many vineyards is the Oatley vineyard in my constituency, run by Ned Awty and his family. Mr Awty raised with me, on a recent, pleasant visit, that small brewers and cider makers benefit from a duty relief scheme to encourage production. Would my hon. Friend join me in asking the Minister to extend that scheme to small vineyards?

I will discuss later in my speech what support I think would be appropriate, so my hon. Friend will hear my thoughts on that in due course. I am incredibly proud that the Weald of Kent boasts some of the best vineyards and wineries in the country. Across the nation, 4,200 hectares of land are under vine—more than double the area just a decade ago. It is no coincidence that even French producers are quickly buying up land in southern England. They recognise the opportunity here, and so should we. Our English vineyards are not centuries-old family estates, handed down through the generations, like on the continent. They are new businesses, built on entrepreneurial risk, with eyewatering start-up costs, and land that is among the most expensive in Europe. The vineyards springing up in Kent, Surrey, Sussex, Hampshire and beyond are often founded by families who have risked everything: buying land at a premium, planting vines in an uncertain climate—that we all experience—and investing in years of training, equipment and marketing before even a single bottle is sold. Many vineyards are warning that rising national insurance contributions, and the recent increase to minimum wage payments, have left them unable to reinvest in their businesses.

I congratulate the hon. Lady on securing this debate during English Wine Week. I could not allow her to list the places where we produce wine without mentioning beautiful West Dorset, which has 11 small wine producers, many of whom have been in touch with me about what this Parliament can do to help small producers in England. Dorset Downs Vineyard suggested that draught relief and small producer relief could be raised from 8.5% to 14% because most English wine sits between the 11% to 14% marks. Currently, beer and cider produced locally get all the benefit, but English wine producers do not. Does she agree with that suggestion?

That is a similar point to the one made by my hon. Friend the Member for Bridgwater (Sir Ashley Fox). It is not uncommon for vineyards and wineries to produce both types of drinks, and so have to operate under two different duty systems, which is also additional bureaucracy. I think that change would make a substantial difference. Our producers represent the future of winemaking. They certainly should not be hindered by rising costs. We need long-term policies that will support their continued growth. WineGB estimates that there are 16 million potential visitors to the UK wine tourism sector: a huge untapped market. In my constituency, the excellent Chapel Down welcomes over 60,000 visitors a year for winery tours. It continues to be a major contributor to our local economy, and that is just the beginning. Producers such as Gusbourne, Westwell, Biddenden, Balfour, Dingleden, Ham Street, Warehorne, Woodchurch, and Domaine Evremond all play a part. We are so fortunate in the Weald that I could not even attempt to name them all in the time I have in this debate. It is, of course, a tremendous chore to visit them all, but my commitment to public service remains unwavering. Many vineyards now make up to 50% of their sales directly to consumers, in so-called “cellar door sales”. That is often the only way for small producers to avoid the razor-thin margins created by intermediaries, excise duties and distributor fees. The potential is enormous. Wine tourism helps to create skilled jobs in rural constituencies like mine. It supports regional identity and allows producers to build a direct relationship with their customers. A targeted duty relief on direct-to-consumer or tourist cellar door sales would help wine producers, in the way that beer and cider receive help from draught relief and small producer relief, as we have heard from hon. Members in this debate. Will the Government consider implementing a wine tourism relief, to recognise this youthful industry’s potential and give small producers the boost they need to truly thrive? More broadly, visits to UK vineyards and wineries were up more than half in just two years. That is extraordinary growth by any measure. What plans does the Minister have to support one of the few industries in the UK that is demonstrably expanding, creating rural jobs, driving tourism and building our export potential from the ground up? If we are serious about backing British agriculture and business, this is exactly the kind of sector that deserves targeted support. Yet, as is too often the case in the UK today, the more businesses grow, the more they seem to be penalised by heavy-handed regulation. Take the extended producer responsibility—EPR—scheme, which affects businesses, including winemakers with a turnover of £1 million or more—a threshold that many of our leading vineyards are proudly surpassing. That success comes at a cost. EPR imposes disproportionately high fees on glass packaging, but glass is the only viable material for sparkling wine. On top of all that, winemakers now face hours of additional paperwork collecting data on the type and weight of materials used, simply to remain compliant with opaque packaging rules. That is not the only example of over-regulation choking the industry. The previously flat wine duty has now been replaced by 30 different rates based on tiny, 0.1% increments of alcohol content. In the context of wine, that makes no practical sense. As has already been pointed out in the House by the hon. Member for Wimbledon (Mr Kohler), ABV varies naturally by vintage and by vat. It is hugely difficult to predict and the system causes confusion, not clarity. Although I accept that the Minister did not create that system, will he take the opportunity to outline what steps the Government might take to ensure that our wine producers can spend more of their time tending their vines, rather than filling out forms? While the previous Government may have implemented some regulations that caused challenges to wine producers, they recognised the need for active investment in the UK wine industry. I was pleased to see them establish the future winemakers’ scheme, with £1.5 million set aside for training opportunities for the next generation of viticulturists. Will the Minister recommit to the scheme today, ensuring that the UK wine industry secures the future talent it needs to reach its full potential? Though welcome, deregulation and training schemes alone are not enough. If we allow the definition of English wine to be blurred or co-opted, the industry risks dying on the vine. There is serious concern among winemakers that third-country producers could ship foreign-made still wine in bulk to the UK, carbonate or transform the product here, and market it in a way that implies it was locally made. That would be misleading to consumers, would undermine the integrity of the English wine label, and would make a mockery of the investment our producers have made in their land, climate and local communities. I want to press the Minister on a simple point: will he commit to ensuring, particularly as the Government restart their third round of post-Brexit wine industry reforms, that wines sold as British or English must be made exclusively from British-grown grapes? He knows as well as I do that the majority of UK wine is sparkling. I am sure he would agree that English wine deserves the same protected designation of origin—PDO status—that champagne and prosecco receive in their respective markets. There are few products that bring together so many public goods: rural jobs, tourism, export potential, environmental stewardship and national pride. English wine is not a nostalgia project or a romantic curiosity; it is a viable, growing industry—one that sits at the intersection of agriculture, manufacturing, hospitality and culture. To support this fantastic product is to invest in our countryside and our brand as a country. We have the chance, as English Wine Week says, to “Create new traditions.” I ask the Minister to seize that opportunity: let us support wine tourism and, above all, ensure that the label “English wine” means what it says—wine made from English grapes on English soil.

11:12:00

It is a pleasure to serve under your chairmanship, Dame Siobhain. I thank the hon. Member for Weald of Kent (Katie Lam), a fellow Kent MP, for securing this absolutely critical debate on a sector that, as she has admitted, has fizz, body and character. I declare an interest as the chair of the all-party parliamentary group on GB wines, an area of significant passion to me. As mentioned, it is English Wine Week, an annual celebration of English wines, during which growers, merchandisers and wine consumers—including me, and probably many in this room—will shine a spotlight on some of the excellent English wines. This sector is one of our most successful agricultural growth areas at the moment—not only because of the changing climate, but because of the quality and long-standing tradition of wine growing that we now see across parts of Kent and elsewhere in the country. I would suggest to other hon. Members that it is not just in the south of England that vineries are growing; we are seeing increasing numbers in Scotland, north-east and north-west England. So be very careful: I suspect we might see vineries in Northern Ireland very soon as well, especially as the way grapes are grown has changed. It is a universal success story, and I am very glad that hon. Members agree. We know that vineyard registrations are up by 7.1%, as has been mentioned, and 21 million bottles of wine are now produced annually, with over 241 vineyards across the country and 4,300 hectares under vine. We are also seeing significant export success—net exports are up 8% per year. This is one of those sectors that, if nurtured, can grow to success. It is a cyclical industry; we know that 2023 saw a record harvest and a blossoming sector, but some years it is not as successful. It is inherently risky, and we have seen a lot of people starting up in vineries who need extra support when launching, because it can take up to five years before they see a return. The sector has some unique challenges—not least the climate and the way the Government work. Both parties and both Governments need to do more to support this sector. I welcome the fact that, over the last 14 years, vineries and the wine industry have grown significantly. That is the result of a real focus in that space. However, we are up against significant headwinds and risks—not least that our main European competitors have state-based subsidy and sponsorship of their wine industries. In parts of Europe, up to €1 billion is set aside just to support the culture of wine consumption and production. That is not something we do here. We are also up against the headwinds of an increasing diversity of different alcoholic products. As the chair of the APPG, I echo some of the statements that have been made today. I will ask the Minister about three things in the brief time that I have. What can we do to promote the export markets here? WineGB has specifically said that it is after very small amounts of money to ensure that we present a professional approach to our exports, so that when we visit trade fairs around the world, our presentation does not put us at a competitive disadvantage compared with other nations. This market is growing in Japan, the USA, Switzerland and South Korea. We know that our wines are very much in vogue and we can successfully market them for very little investment. What can the Government do to promote those exports and create the global Britain that we promised? I absolutely agree on wine tourism relief. What more can we do to promote tourism in this sector? Vineyards are now diversifying their businesses into restaurants, hotels and other markets, so what can we do to support that? Also, what can we do to provide support for energy and other production costs? The Government have this week announced energy provision support for some sectors. Wine production is an energy-intensive industry. Is there any consideration of offering start-up energy cost reductions to such businesses? This industry can be an extremely successful driver of agricultural growth at a time when rural economies are struggling, so what can we do to promote the industry, to ensure that it continues to grow and to be the success it is today, and also in 10 years’ time to be double or triple the size?

I think the hon. Member has finished speaking. The hon. Member for Winchester might want to intervene on the Minister at an appropriate time.

11:17:00

It is a pleasure, as always, to serve with you in the Chair, Dame Siobhain. I thank the hon. Member for Weald of Kent (Katie Lam) for securing this very important debate. As she said, this is English Wine Week, so it is a timely and fitting moment to celebrate the remarkable achievements and growing global reputation of the English wine industry. Wine events and regional showcases taking place across the country this week demonstrate the increasing breadth and variety of domestic wine production. It is an industry that not only carries historical and cultural significance, but is also a modern success story of innovation, investment and rural regeneration. The Government absolutely recognise and celebrate the rapid growth of the English wine sector. It is one of the fastest growing agricultural industries in the UK, with production, exports and consumer demand all on the rise. For example, exports of English wine doubled from 4% of production in 2021 to 8%, as was celebrated by my hon. Friend the Member for Chatham and Aylesford (Tristan Osborne), whose contribution as chair of the all-party parliamentary group I welcome. It is imported by 45 different countries across the world, and that growth is a testament to the hard work, vision and entrepreneurial spirit of those working across the sector. The area represented by the hon. Member for Weald of Kent is home to some of the most distinguished and pioneering vineyards in the country. Chapel Down, Balfour and Squerryes Winery are shining examples of excellence in English wine production. They not only produce award-winning wines, but contribute significantly to local employment, tourism and rural development. Their success reflects the broader momentum of the English wine industry and the exciting opportunities that lie ahead. English wines have built a well-earned reputation for quality and high standards, and the Government are committed to working with the industry to champion and protect that reputation both at home and abroad. My hon. Friend the Member for Chatham and Aylesford asked how we can help to boost those exports. We have an excellent group of agricultural attachés who work very hard across the world to boost our exports and products. I am conscious that they are working very hard to make sure this brilliant British product is exported across the world. The Government are steadfast in their commitment to support rural economies. We are determined to ensure that the UK has a thriving and diverse economy that promotes local jobs, boosts growth and supports communities across the country. The English wine sector is a really good example of that vision in action.

I am sure that all hon. Members would agree that Hampshire sparkling wine is the very best in the country, and the awards prove it. On supporting the wine industry in rural economies, Sparsholt college in Winchester—an agricultural college—has recently started vineyard curating courses as part of its horticulture courses so that the local wine industry has a trained workforce. Can the Minister look at rolling that out to the rest of the country, in areas that are appropriate?

The hon. Gentleman is absolutely right: it is really important that we get the skills in place for the future. I recently had the pleasure of visiting Domaine Evremond and the Simpsons’ Wine Estate, and I was knocked out by them, frankly. They are not just vineyards, but symbols of confidence in the UK’s wine industry. They export half their produce to international markets, with Norway being the top destination. The scale of investment and the ambition are inspiring and yet, exactly as hon. Members have said, we are probably only scratching the surface of what is possible. The opportunity for growth in relation to both domestic and international investment is enormous and absolutely aligns with the Government’s broader mission of boosting economic growth and global trade. We are committed to working together with the sector to support the ambitions for growth and exports. We are also focused on ensuring that the growth translates into high-quality, sustainable jobs in rural communities, exactly as the hon. Member for Winchester (Dr Chambers) suggested. I am talking about jobs that support families, strengthen local economies and preserve our countryside. We are working closely with stakeholders to improve the English protected designation of origin and protected geographical indication schemes. One exciting possibility under consideration is the creation of a separate sub-category to allow alternative production methods under the PDO scheme, which would further broaden the appeal of our wines and open up new market opportunities. My officials are engaging with local producers, including those in the constituency represented by the hon. Member for Weald of Kent, to support an application for formal recognition of distinctive regional areas such as the Kent Weald. This initiative aims to highlight the region’s unique geological and agricultural characteristics, which contribute to the exceptional quality of its produce. By talking with stakeholders on the ground, the Government are ensuring that the application reflects the authentic identity and heritage of Kent’s landscapes. Such recognition not only promotes regional pride, but enhances market opportunities for local producers, reinforcing the area’s reputation both nationally and internationally. A number of questions were asked, and I will try to address them. The hon. Member asked about the possibility of a wine tourism relief. We are very interested in linking the production to the tourism offer, and I understand that WineGB is about to launch a campaign for a wine tourism relief. I cannot make any commitments today, because it is a Treasury issue, but certainly, it is something that we are interested in looking at. On my visits, I was very struck by the ingenuity and entrepreneurial zeal of the winemakers in linking it to a really sophisticated tourism offer—I think that when I visited, they were hoping they would not get too much rain over that weekend; it now seems extraordinary we should even be thinking about rain. But this shows how it is possible to transform not just the wine production area itself, but the local economy: the local pubs, hotels and so on. It is really exciting. The hon. Lady also asked about packaging and the extended producer responsibility, which has been a long-running issue. I can tell her that the latest set of fees will be announced on Friday, so that should bring some certainty, I hope. She also asked about transformation. That is a complicated issue, which we will look at when we come to the third phase of wine reforms. However, I can assure her that any wine that is imported into the UK but not transformed—if it is shipped in bulk and only bottled in the UK, but not transformed—cannot be marketed as being made in England, or similar. We are very clear about that.

Small cider producers in Somerset benefit from a duty relief scheme. I realise that the Minister is about to conclude his remarks, but he does not appear to have touched on the subject of duty relief for small vineyards. Will he at least give a commitment that he will talk to the Treasury about that, because it seems illogical that small brewers and small cider producers benefit from duty relief but small vineyards do not?

The hon. Gentleman tempts me to stray into Treasury matters. What I will observe is that the 8.5% limit is part of the health approach, and I think we will stick to that. To conclude, the UK wine sector is a source of confidence, growth and success. I am committed to working with it—and have very much enjoyed working with it so far—every step of the way to drive growth, boost exports and ensure that rural communities across the UK share the benefits of its success. When we see the climate being transformed before our eyes, that produces a lot of challenges for the food sector in general, but this is an opportunity that, it seems to me, we should really seize. I again thank the hon. Member for Weald of Kent for securing this debate. In English Wine Week, it is especially important that we recognise the passion, progress and future of this vital industry. We are committed to supporting the English wine industry by listening to its concerns and acting upon them, and by working collaboratively towards common goals. Question put and agreed to.

11:26:00