WineGB calls on government to invest in UK’s viticulture and winemaking

The Comprehensive Spending Review will be used to set future budgets for government departments.

The consultation closed on Sunday 9th February, and in its submission, WineGB highlighted the opportunity to rebalance the substantial impact of the wine duty increases on the sector by ensuring that money goes to support industry growth.

The UK is one of the very few countries in Europe that levies excise duty on domestic wine production, and this puts English and Welsh wine producers at a significant competitive disadvantage. No new wine region or category has successfully established itself without state support.

The domestic wine industry was heavily impacted by the Budget, including the duty increase, elevated National Insurance contributions, and changes to the minimum wage and inheritance tax, to name a few, WineGB explained.

To mitigate some of these additional costs and to support the English and Welsh wine industry to reach its potential, WineGB has outlined how the government can increase the contribution to the economy from the fastest-growing agricultural sector in the UK.

‘Don’t be penny wise and pound foolish’

WineGB is asking the government to:

• Recognise the agriculture, agri-food, and beverages sectors – in particular, viticulture – as key growth sectors and include them in its growth strategies and economic plans. WineGB is concerned that they do not feature in the government’s Industrial Strategy and the consequences this has when earmarking resources.

• Allocate funding and co-financing support to promote wine-related investment, research, innovation, infrastructure development, education, and export expansion. This includes implementing and making permanent the £1.5 million Future Winemakers’ Scheme announced by the previous government at the WineGB Industry Conference.

• Implement policies that increase market access, reduce regulatory burdens, assist expansion, and promote sustainable practices. This places value on British produce.

• Provide support for international expansion. This includes international category-wide campaigning to take advantage of demand for GB wines.

English and Welsh wine already has a significant economic impact, swelling Treasury coffers through direct sales, excise duty, National Insurance contributions and other business rates, as well as supporting a wide range of ancillary sectors – including tourism, retail, and hospitality – primarily in rural areas.

The industry’s sustained growth has the potential to contribute to the continued creation of highly skilled, sustainable, and increasingly high-tech jobs as well as the advancement of rural businesses and economies, the association explained.

Nicola Bates, CEO of WineGB, said: “We understand that times are tough, and budgets are tight. Our industry has already been asked to tighten its belt due to multiple increases in tax, with the compounding impact of duty.

“No other domestic wine producer faces such government burden while managing such varied economic headwinds. When there is such interest in our wines, the government should help us take advantage of it.

“Don’t be penny wise and pound foolish. We are the fastest-growing agricultural sector in the UK and provide multiple levels of skilled and semi-skilled rural jobs through the creation of a sustainable, local product. We are calling on the government not to under-value our current and future economic contribution.”

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