English Wine Production Debate
Full Debate: Read Full DebateDanny Chambers
Main Page: Danny Chambers (Liberal Democrat - Winchester)Department Debates - View all Danny Chambers's debates with the Department for Environment, Food and Rural Affairs
(1 day, 20 hours ago)
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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.
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.