Budget changes welcomed by award-winning Hencote

Award-winning wine estate Hencote has welcomed an overhaul of the way alcohol is taxed. 

Shrewsbury-based Hencote said Chancellor Rishi Sunak’s announcement that he was scrapping the tax premium on sparkling wine was good news for the industry. 

Mark Stevens, Hencote general manager, said the move would see the level of duty on sparkling wine reduced so that it was in line with that of still wine and help give English producers an advantage over imported bottles. 

“At a time when the English wine industry is really starting to take off – and when its sparkling wine is earning respect right around the world – this is very good news. 

“We are pleased that the Chancellor has taken the opportunity to streamline the system of duties which will also give this country’s homegrown sparkling wine an advantage in our home market over bottles from overseas. 

“The duty has been far too complicated for far too long and anything which makes it easier for all producers to navigate is very much welcomed.” 

Prior to Mr Sunak’s announcement the UK duty system was made up of 15 separate bands of taxation, including six for wine. 

Mark said the growing reputation of English wine around the world meant it was essential that it was given every opportunity to compete against established rivals. 

“English winemakers have seen duty on wine increase by 39 per cent since 2010 – much higher than the 16 per cent increase on beer. Despite this the industry is a real success story with vineyards now being developed all around the country. We need to do everything we can to ensure that success continues long into the future.” 

Hencote made history earlier this year when its Mark I 2018 red wine struck gold at the International Wine Challenge (IWC) – widely regarded as the Olympics of the industry. 

The award means the vineyard is the first in the UK to have won gold for two different still red wines, having previously picked up the award for its 2018 Amphora Pinot Noir in 2020.