UK Wine Industry Debate
Full Debate: Read Full DebateAlison Bennett
Main Page: Alison Bennett (Liberal Democrat - Mid Sussex)Department Debates - View all Alison Bennett's debates with the Department for Environment, Food and Rural Affairs
(1 day, 10 hours ago)
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Tristan Osborne
Absolutely, there are challenges in the industry and I will raise a number of them in a moment, but first I want to offer an overview of the success of the sector. There are a lot of hard-working wine growers and merchants. Despite some of the challenges, the industry is already showing real success and we need to support it.
British wine is gaining recognition not just in this country but across the world. Japan is now a key market and the United States, Hong Kong, South Korea and Denmark are all beginning to respect our wines and see them as a go-to product choice. The export market is expanding at pace and, with support, this could be a real positive multiplier in our rural communities, much maligned and struggling in many cases. This is a growth industry that could sustain our rural economy and grow it in a more promising way. Many practices that wine producers engage with are inherently sustainable and support the local community, both directly in terms of wine producing, but also in spin-offs such as restaurants and wine tourism.
Alison Bennett (Mid Sussex) (LD)
I know the hon. Member trained as a teacher. Plumpton college educates many students in Mid Sussex and last year, it pledged £500,000 of fully funded training in the wine sector. Does he agree that to grow the wine industry, the Government also need to support skill development in rural economies and communities?
Tristan Osborne
I agree 100% that we do need to support more agricultural colleges. Clearly, individual courses will need to have throughput with apprenticeships into wine producers. There are not many of those and they are, at present, quite contained. I absolutely agree that, as the industry grows, we need to encourage skills development in that space.
I have other queries similar to the hon. Lady’s, and some of these policy interventions would not be expensive for the Government. On support for wine tourism, apparently 19% of our domestic wine is sold directly to visitors and local customers at the cellar door. These are not just transactions; they are experiences that anchor vineyards in their communities, create hospitality jobs and bring people into rural areas. A carefully designed relief on duty for on-site sales would not distort the market and threaten revenues but empower producers to grow sustainably. If we can offer small-scale support to the sector at this stage of the industry’s growth, we can realise and return greater revenues later.
We also need to safeguard what British wine actually means. Consumers deserve clarity, and our producers deserve protection. Wine labelled as “English”, “British” or “UK-made” should genuinely be made from 100% British grapes, and labelling reforms should enhance transparency, rather than create loopholes. At the same time, we need to beware of regulatory changes that could undermine domestic sparkling producers, and we should instead allow domestic producers the opportunity to make a protected geographical indication category for English prosecco, for example. Adding to that, it is vital that we do not dilute internationally recognised standards.
As has been mentioned, we of course need to support education, research and development, and the promotion of skills. Much of the grant funding that once supported equipment, education and research has fallen away over the years. In my view, if we are serious about growing a high-value rural industry, which is already showing this growth, strategic investment in training, research and overseas marketing is not a luxury; it is a requirement to oversee growth. We know that we operate in a global market, and competing wine nations, such as France and others close to us in Europe, are already providing this backing to their industries. We need to be in this space to ensure that our producers are competitive on a level playing field.
On exports more broadly, no new wine region has succeeded internationally without some initial state backing. If we want English wine on shelves in Tokyo, New York and Copenhagen, the Government must be a partner, which is why supporting wine producers at expo conferences and trade fairs is absolutely critical. Small amounts of money to support advertising in those locations could generate significant throughput and expansion in exports.
My colleagues are right to mention taxation, and we need to be open to considering a level playing field. When it comes to small cider and beer production in this country, tax relief is offered at the cellar door, and I believe that the Government could also consider doing that for small wine producers. I understand that a statutory review of the system is due in August, and I urge the Minister to lobby her colleagues in the Treasury, as tricky as that might be, to look at both the level and methodology of wine duty to ensure that it supports, rather than constrains, this growing sector. I understand that the challenges with the Treasury might be significant, but it is nevertheless worth me articulating that.
On packaging policy, there are of course real challenges. Under extended producer responsibility, the fee for glass is around eight times higher than in other comparable European schemes. Although I am an advocate for our environment, as well as for the sustainability of many workplaces, we know that the wine industry relies on glass as a premium product and this problematic double-charging has an impact on communities. Can EPR fees be reviewed in the light of the size or turnover of a company, or the scale of its operation? Although I accept the premise of extended producer responsibility, perhaps there are some areas that could be looked at.
Land use planning must also recognise the unique nature of vineyards. As has been mentioned, they are not simply farms but rural assets—they are agricultural enterprises that not only produce high-value crops but act as tourist destinations, attracting visitors to local economies. Balfour, which is a Kent-based winery that I have had the pleasure of visiting, now offers a bespoke restaurant and hotel. That is now standard in many wineries, and some are aligned with pubs and other hospitality venues. Tasting rooms, restaurants and event venues are also linked to many of these producers as they diversify their businesses. They are not just environmental stewards, maintaining landscapes and biodiversity; they are indigenous parts of our communities. As we have seen in other European nations, we should be celebrating and talking about that.
As we look ahead, the UK wine industry will be a vibrant part of our national story, and it is one that we can absolutely sell to the world. I believe that this vision is aligned with our Government’s strategy to create a more dynamic rural economy and to support the economies of the future—as our climate changes, this space is only going to grow. I believe that we can build those jobs and pride, while delivering world-class British produce in our communities.
Lastly, outside of Government, supermarkets and distributors have a part to play. If we visit France and go down a wine aisle, we see that the French actively celebrate their product and market it with a logo, and they encourage their people to purchase it. I believe that our supermarkets should have that responsibility as well, and we can encourage them to market English wines in a similar way. Domestic demand would dramatically increase if there was consumer access to the wines that we produce—I say that to restaurants as well.
The industry is now going through a phase where there is movement and tumult as new wineries open and close, but in 20 years’ time the sector will be double or triple the size it is today. The Government should enable that as much as possible and ensure that our rural economies benefit, so we get the pleasure of tasting the best wine in the world.