Alcohol Duty: UK Wine Sector

Alison Bennett Excerpts

Tuesday 11th November 2025 Westminster Hall

[Katie Lam (Weald of Kent) (Con)]

I congratulate my hon. Friend the Member for Farnham and Bordon (Gregory Stafford) on giving us an opportunity to discuss this very important topic that affects so many people and businesses in the Weald of Kent, which proudly produces some of the finest wines in the country.

The principle of taxing alcohol by strength may make sense in theory, but wine is an agricultural product. Its strength cannot be engineered to order; instead, it varies naturally with climate and vintage. A system designed for factory production simply does not work for vineyards rooted in the soil. Sadly, our wine businesses have faced steep duty increases, ever more paperwork and, as a result, mounting costs across the board. In the Weald of Kent, small vineyards—often family-run and started from scratch—are grappling not just with higher duties but with higher label costs, greater packaging charges and yet more red tape.

In May, I wrote to the Minister’s predecessor to raise my concerns about the impact of alcohol duty on the wine industry. In his reply, he said that producers below 8.5% ABV could claim draught relief and small producer relief. That is true, but almost no wine sits below 8.5% strength. Might the Minister be able to tell us how many UK wineries actually claimed either relief last year?

[Alison Bennett (Mid Sussex) (LD)]

Like the hon. Lady, as a south-east MP, I have some amazing vineyards in my constituency, such as Bolney Wine Estate and Albourne Estate. They have told me about the challenges of the 8.5% cap that the hon. Lady has so articulately set out. It strikes me, however, that the previous Conservative Government brought in that cap. Does the hon. Lady think that current members of the Conservative party regret that decision from 2022?

[Katie Lam]

It is not for me to speak for them, but it is reasonable to say that the system we have does not work very well. It would not be right to pretend otherwise on behalf of my constituents who have to deal with it every day.

The Minister’s predecessor also said that the new system benefits lower strength wines, including many British wines. Since February, overall rates have risen. Might the Minister be able to tell us what share of English wines are paying less or more duty now than under the previous system? Finally, the previous Minister said that reforms would strengthen the tax base, yet as far as I can see, between April and September, alcohol duty receipts were almost £300 million lower than in the same period last year, despite the rates rise. It would be useful if the Minister could explain that.

Duty on 14.5% ABV wine is now almost half as much more again as it was in August 2023. As my hon. Friend the Member for Farnham and Bordon rightly pointed out, well more than half the shelf price of a bottle of wine is now tax. In France, the equivalent duty is a few euro cents, and in Spain, it is nothing at all. This duty system, combined with the general tax rises in the last Budget, is putting businesses at risk. Could the Minister please rule out any further duty increases in the upcoming Budget? Countless small producers in the Weald of Kent, and about 1,000 independent merchants across England, are already struggling under the weight of new bureaucracy and tax pressures.

Winemaking is not an exact science. As I mentioned, alcohol strength fluctuates from year to year, and small differences can double a producer’s duty bill. Large multi-national producers may be able to absorb that; small family wineries cannot. They cannot dial down their ABV without changing the taste or quality of the product. They cannot dilute wine without destroying it. These are new entrepreneurial businesses built on enormous risk and long-term investment. Many vineyards in the Weald have put everything they have into buying land, planting vines and waiting years before their first sale.

In my constituency, we are proud to host many of Britain’s leading wineries, including Chapel Down, Gusbourne, Balfour, Biddenden, Westwell, Woodchurch and Domaine Evremond—the list goes on. They bring visitors, jobs and pride to the Weald, and it is an utter pleasure to visit them all. We are also home to small start-ups, such as the husband and wife team I met last month in Hamstreet taking a leap of faith into the sector. It if is tough for the big names, it is tougher still for the small ones. Now, they face not just duty increases but rising national insurance costs, higher minimum wages, an end to flexible employment contracts, changes to inheritance tax relief, and packaging fees that penalise glass, which is the only viable material for quality sparkling wine.

When I last raised the broader issue of wine in England, I asked the Minister’s colleague in the Department for Environment, Food and Rural Affairs whether he would support the sector’s call for targeted help, and he said it was a matter for the Treasury. I say to the Minister today, “Please look again.” I know that he did not create the duty framework, but my hon. Friend the Member for Farnham and Bordon is right that we seem to have reached the tipping point at which our taxation system is so complex and onerous that it is collecting less money than a simpler lower-rate system would. It would be great to hear what plans the Minister has to support such an exciting and dynamic industry creating jobs and amazing export opportunities in rural parts of the country such as my home, the Weald of Kent.

Oral Answers to Questions

Alison Bennett Excerpts

Tuesday 9th September 2025 Commons Chamber

[James Murray]

I was pleased to meet Kim McGuinness just last week and to hear about the excellent work she is doing to champion the north-east. On the better futures fund more broadly, we know that the design must truly be a joint endeavour—it must be built up through an open dialogue with a range of different partners who will be involved in the delivery. I reassure my hon. Friend that DCMS’s stakeholder engagement includes mayoral strategic authorities, as they will be part of that process.

[Alison Bennett (Mid Sussex) (LD)]

The better futures fund rightly targets the needs of vulnerable children, and one such group are those who are subject to adoption or kinship arrangements. Last week the Department for Education announced that it would renew the adoption and special guardianship support fund for one year, but did not say that it would reverse the 40% cuts in per-child funding that were announced in the spring. Does the Minister agree that reversing those cuts is vital for protecting families and keeping children in adoption arrangements, and will he meet adoptive families from Mid Sussex so that he can better understand the benefits to the Treasury that investing in adoptive families will bring?

[James Murray]

The hon. Member asks about an important matter. As a constituency MP, I have met families who have an interest in the fund and who are in the process of adoption themselves, so I know on a personal level from my constituency work how important it is. What the Department for Education was able to announce last week was important in confirming the extension of the fund, which will offer some certainty to the affected families. I will continue to work with colleagues in the DFE to ensure that we are doing all we can to support those families, who are playing such an important role for their children and for society.

Oral Answers to Questions

Alison Bennett Excerpts

Tuesday 20th May 2025 Commons Chamber

[Torsten Bell]

What the sector is doing is welcoming the trade deals done by the Government yesterday. What it is worried about is a Conservative party that cannot bring itself to welcome a single trade deal with any country around the world. The party of Robert Peel has turned its back on the entire world.

[Alison Bennett (Mid Sussex) (LD)]

The Hop Tub in Hurstpierpoint, the Hop Sun in Haywards Heath and the Brickworks in Burgess Hill are three fantastic microbreweries serving the constituents of Mid Sussex. Given the pressures of national insurance and the challenges of business rates, what is the Treasury doing to support these innovative businesses?

[Torsten Bell]

I think everybody in this House enjoys the proliferation of microbreweries around the country, which is why the Government are supporting draught beer and cider by knocking 1p off the price of a pint at the Budget last year. It is important not only that we support our pubs, but the brewers who produce the content that is sold in them.

Oral Answers to Questions

Alison Bennett Excerpts

Tuesday 8th April 2025 Commons Chamber

[Rachel Reeves]

The key thing we need to do is build the homes our country desperately needs. That is why I put £600 million of investment into creating 60,000 additional places for people to learn the construction skills we need, and into good jobs, paying decent wages and building the homes we need. That is also why we are reforming the planning system, so that we can actually get those homes built. We are backing the builders, not the blockers, which is what the Conservatives did.

[Alison Bennett (Mid Sussex) (LD)]

At the weekend, The Times revealed the problems in the retirement housing market, in terms of both new builds and resales, and many of my constituents have been experiencing a loss on the houses and flats that they have inherited. Does the Chancellor consider the housing market to be adequately providing decent, affordable homes for those who are downsizing as well as first-time buyers?

[Rachel Reeves]

I would be very happy to arrange a meeting for the hon. Lady with the relevant Minister to discuss some of those specific issues around retirement properties. She makes a really important point. We need to make it easier for people to downsize to free up those properties, including in the private sector, so that more homes are available for families.

Oral Answers to Questions

Alison Bennett Excerpts

Tuesday 4th March 2025 Commons Chamber

[Darren Jones]

My hon. Friend is absolutely right. [Interruption.] Conservative Members are chuntering, but that is their legacy. Not once in 17 years was a zero-based review done, not once did former Conservative Ministers require their Departments to go line-by-line through their budgets, and not once did they think that the responsible thing to do was to go through to check how every pound of taxpayers’ money was spent. Instead, there was an argument each year: how much more money am I going to get; how much more borrowing will there be to pay for these bills; and how many more promises am I going to make that I know I will not deliver. The British people were sick to death of that approach to politics, and this Government are taking a fundamentally different approach.

[Alison Bennett (Mid Sussex) (LD)]

The adoption and special guardianship support fund provides excellent value for money in Mid Sussex for Beacon House, which is a specialist mental health and trauma clinic. Unfortunately, however, the clinic’s financial future is looking uncertain. Does the Minister agree that investing in mental health is always a good idea when it comes to getting people back to work and well again and able to contribute to society? Will the Minister work with the Department for Education to secure future funding for this vital service?

[Darren Jones]

I agree entirely that mental health services are in desperate need of investment and support across the country. The evidence is very clear that there are, for example, too many people out of work who would be like to be in work, but who are waiting at home unwell and unable to receive the support and services that they need and deserve. The Health Secretary is working hard on that at the moment. We are going into the spending review negotiations over the coming weeks and months, and we will set out further detail in due course. I look forward to being able to provide more information specifically as we go through that process.

Family Businesses

Alison Bennett Excerpts

Wednesday 26th February 2025 Commons Chamber

[Mike Martin (Tunbridge Wells) (LD)]

Thank you, Madam Deputy Speaker. [Hon. Members: “How do you follow that?] It will be hard—probably with a lower level of energy.

I recently met with Peter, Kate and Edward, who run the two Basil cafés in Tunbridge Wells; there are four across Kent. They are a family business—the subject of today’s motion. [Interruption.] After the damage Conservative Members did to the economy when they were in government, they need to pipe down. The family told me that the combination of the minimum wage and national insurance rises and business rates has them on their knees. The only thing they can do and the only option they have, bearing in mind that they are a family business—their staff are also their friends, and these are hubs in our community—is to lay off staff or, in some cases, not to grow their employment in the way that they had planned.

Zooming out a little, about a month ago I met with the Tunbridge Wells hospitality reps. They are the owners of pubs, restaurants, hotels and bars in Tunbridge Wells, which are all small businesses—most of them are family businesses. As we went around the table, it was the same story from them. The combination of all three measures, coming at the same time, means that they are either looking at laying off staff now or delaying plans for future employment.

[Alison Bennett (Mid Sussex) (LD)]

I thank my hon. Friend for giving way, and for the excellent way in which he is setting out the problems faced by many family businesses in Tunbridge Wells. In Mid Sussex, I recently spoke to the owners of Frank’s Diner on Church Road in Burgess Hill, who said exactly what my hon. Friend has said: they are finding this combination of different moves punishingly hard, and are worried that they are going to have to close their business if things do not improve soon and the Government do not think again. Does he agree that the Government really do need to think again, and think harder, about the impact that their decisions are having on small family businesses?

[Mike Martin]

I thank my hon. Friend for her intervention. This is not hyperbole; these are real stories from real businesses, from people who stay up at night trying to juggle profit and loss, or looking at how they are going to pay their national insurance contributions or their business rates at the end of the month.

We do not have much time, so I want to zoom out a little bit and make a couple of points, followed by an ask of the Minister. For many of us, our first jobs were in hospitality. My first job was as a dishwasher in a hotel when I was 16, and the question is whether a business would employ me now with these laws, or whether they would invest in equipment that could automate that dishwashing to a point at which they do not need to employ so many 16-year-olds. I came from a relatively privileged background, but working in a hotel as a dishwasher, or working as a gardener or a labourer—all the other things that I did when I was young—were incredibly important experiences in forming me into the person I am now. We want businesses to be able to employ people in their first jobs, because we only ever have one first boss.

My second societal point is that hospitality, in particular, sits in the ecosystem of our town centres. It is hospitality, retail and leisure—one of those things will bring people into a town centre, and then they will often go and visit another business from one of the other three corners of that triangle. As has been mentioned by Members on both sides of the House, hospitality in particular acts as a glue in our society, and one of the things I have noticed since being elected last July is how atomised our society is and how many people struggle with a sense of belonging, particularly after the pandemic. We are looking for communities to belong to, and hospitality provides some of the glue that holds us together, whether that is having a pint, meeting your mates for some chips, or whatever else. If our societies are glued together better, all sorts of other things, such as antisocial behaviour, crime and health—social connection improves our health—get better, which of course costs the Government less money on other budgetary lines.

As such, I would like to ask the Minister just one thing. The Budget increased business rates, and I know that the Chancellor is not going to go back on the national insurance rises or the minimum wage. On business rates, though, the Government have indicated that a consultation is currently ongoing, and they are asking people to contribute to it. I ask that we do not just look at this issue in the context of a spreadsheet, as the Treasury often does. That is important—we must support those businesses financially—but we also have to understand that retail, hospitality and leisure in our town centres contribute to the glue that holds our society together. When we reform business rates, we must consider that as well.

Farming and Inheritance Tax

Alison Bennett Excerpts

Wednesday 4th December 2024 Commons Chamber

[James Murray]

Although our policy should discourage the kind of tax planning to which I think the hon. Gentleman refers, the policy is broader than that. It is necessary to balance significant relief from inheritance tax on family farms with the need to fix the public finances, and that is the balanced decision that we have taken with this policy.

Of course, the decision on this tax policy sits alongside the Government’s wider decisions at Budget 2024. There is £5 billion over two years for farming and land management in England, which will help restore stability and confidence in the sector. That includes the largest ever budget directed at sustainable food production and nature recovery in our country’s history. Despite the difficult fiscal inheritance, £60 million of funding has also been prioritised for the farm recovery fund, to support farmers impacted by severe wet weather over the last year.

[Alison Bennett (Mid Sussex) (LD)]

The Minister rightly mentions the need for more sustainable land management, but is it not the case that the changes to APR will actually undermine the sustainable land management initiatives that farmers in Mid Sussex are trying to deliver every day?

[James Murray]

No, that is not the case. The Minister for Food Security and Rural Affairs, my hon. Friend the Member for Cambridge (Daniel Zeichner), who will be responding at the end of this debate, can set out more about what the Government are doing to support farmers in their work on land management across the country.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Alison Bennett Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Alison Bennett (Mid Sussex) (LD)]

On Saturday evening, I was lucky to attend Sussex Chorus’s performance of Handel’s “Messiah” at St Andrew’s church in Burgess Hill. There was a collection at the end for the St Peter and St James hospice, which looks after many people in Mid Sussex. As I put my donation in the bucket, the lady holding the bucket thanked me, and she told me that her husband had spent his last days at St Peter and St James. When she realised that I was the local MP, she grasped my hand tightly, and said, “You have to do something about NICs.” I said that I had been trying to, and had been raising the matter in the Houses of Parliament, but having not been heard so far, I will raise it again today.

Our hospices and social care providers do hugely difficult, often invisible work. They look after the weak, the vulnerable and the dying, but these organisations are themselves even more vulnerable than they were as a result of the Government’s proposed changes to employer national insurance contributions, announced in the Budget. That jobs tax jeopardises the quality and reach of the services that will be available in my constituency and across the country. The children’s hospice charity Together for Short Lives estimates that the rise from 13.8% to 15% in April 2025 that was announced in the Budget will increase costs for children’s hospices, which provide lifeline care to seriously ill children, by nearly £5 million annually. Combined with inflation, falling local NHS and council funding, and uncertainty around the NHS children’s hospice grant, this policy risks reducing or even closing essential services. In the social care sector, MHA, which supports more than 17,000 older people across 80 care homes, 59 retirement communities, and 43 community based hubs, estimates that it will face an additional £4.6 million in costs in the first year alone.

[Graham Stuart]

Will the hon. Lady give way?

[Alison Bennett]

I would like to make progress. Around 18,000 private social care providers operate in the UK. We must help them to help those in need, and we cannot afford to put up more barriers for them. How can we expect those providers to survive if we impose higher taxes on them? This is not making the most of an opportunity for long-term positive change; I am sad to say that it is squandering it.

The Government could have found better ways to raise the necessary funds. They could have reversed tax cuts for big banks, increased digital services taxes, or even reformed capital gains tax to ensure that the wealthiest pay their fair share. My Liberal Democrat colleagues and I have repeatedly urged the Government to exempt social care providers and hospices from the tax rise, and I do so once again today. Let us do right by those who work tirelessly to support and protect our most vulnerable, and in doing so, let us build a healthcare system fit for the future.