The chief executive of Chapel Down, a prominent winery based in Kent, has urged the UK Government to extend its business rate reductions to hotels, citing the potential to stimulate growth in the British sparkling wine sector. James Pennefather welcomed the recent 20 percent cut in business rates for pubs, announced by Andy Burnham, but said similar relief should be offered to hotels, which play a significant role in the sales of Chapel Down’s products.

Pennefather noted that hotels have not benefited as much from the current measures, and argued that a broader application of the business rate cuts could provide a substantial boost to the domestic wine industry. He highlighted the rapid expansion of UK viticulture, attributing growth in part to climate change improving grape-growing conditions in the region.

A government-backed reduction in business rates on select hospitality venues has been introduced as an effort to support the sector’s recovery following pandemic-related disruptions. While the cuts have been positively received by many within the hospitality industry, industry leaders like Pennefather are calling for the measures to be extended to other related sectors to further stimulate economic activity and help revitalise high streets across the country.

The push for wider relief measures has gained momentum among retail and hospitality operators who argue that while pubs, bars, and live music venues benefit from the current business rate adjustments, hotels and other hospitality-related businesses face higher operational costs without similar support. Proponents suggest that extending the policy could encourage spending and investment, ultimately benefiting local economies.

Chapel Down’s chief executive emphasised the potential impact such a policy adjustment could have for his company and the broader industry, stating that while the existing cuts represent a positive step, additional reductions would significantly bolster growth prospects for British wineries. The company’s comments come amid broader industry discussions about strategies to expand the domestic market for UK-produced wine, particularly sparkling varieties, which have seen increasing demand both domestically and internationally.