Vineyard’s bitter grapes over ‘penal’ Labour tax seize

Britain’s largest wine estate has warned ‘penal’ tax rises risk destroying a booming industry.

Chris White, chief executive of Denbies, said that after a quarter of a century of growth and a threefold rise in sales, expansion at his Surrey vineyard is on hold.

He said some producers are now thinking: ‘Blimey, is it all worth it?’

At Denbies, which has been frequented by generations of Royalty, plans put on ice include buying new machinery and doubling the size of the on-site hotel.

Dry spell: Denbies’ Chris White said that expansion at his Surrey vineyard is on hold

Celebrations will still mark Denbies’ 40th anniversary this year, but so far the only investment is replacing elderly vines planted when the 380-acre winery was built around a 16th Century farm.

It follows successive Budgets where National Insurance Contributions and the National Minimum Wage rose, followed by last week’s 3.66 per cent hike in alcohol duty.

Business rates are due to go up in April. As a result, White said he was ‘trying to keep our powder dry’ before taking any action to counter these rising costs.

Labour’s actions have cast gloom after years of growth in the sector, buoyed by a changing climate that has turned southern England into fertile ground for viticulture.

Denbies is Britain’s largest single estate vineyard, producing up to a million bottles of still and sparkling wine a year. In 2011, the then Prince Charles visited with Camilla, while Queen Elizabeth II and Prince Philip toured in 2004.

White said: ‘There have been very few recent success stories in British agriculture but viticulture has done very well. But the Government hasn’t supported us at all.

‘It’s becoming penal. Here in the UK, we charge some of the highest duties in the world. We can’t compete with the wages and salaries of vineyards in South Africa, New Zealand or South America. which don’t have the same charges.’

If Ministers didn’t ‘act quickly’ he said ‘it’ll be too late and we’ll see vineyards disappear’. The Treasury said: ‘Alcohol duty plays an important role in ensuring public finances remain fair and strong.’