Wednesday 25th June 2025

(1 day, 21 hours ago)

Westminster Hall
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Katie Lam Portrait Katie Lam
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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.

Ashley Fox Portrait Sir Ashley Fox (Bridgwater) (Con)
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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?

Katie Lam Portrait Katie Lam
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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.

--- Later in debate ---
Daniel Zeichner Portrait Daniel Zeichner
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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.

Ashley Fox Portrait Sir Ashley Fox
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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?

Daniel Zeichner Portrait Daniel Zeichner
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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.