Chapel Down chief calls for business rates relief to extend to hotels
The head of one of Britain's leading wine producers has urged the Government to extend business rates relief to hotels, arguing the measure would fuel growth in the country's rapidly expanding sparkling wine sector.
James Pennefather, chief executive of Chapel Down in Kent, welcomed Andy Burnham's decision in July to cut business rates for pubs by 20 per cent, a measure affecting nearly 32,000 hospitality businesses and saving typical venues around £1,100 annually. However, he said hotels — another crucial outlet for British sparkling wine — have been left out of the relief package despite facing severe cost pressures.
Hotels have been less impacted by these measures, so we'd encourage the Government to go further on this
Pennefather said. He added that extending the rates cut would hugely support our industry and help drive growth in Britain's burgeoning wine sector.
Hotels face steep cost increases
Hotels have been significantly affected by rising business rates, with the average establishment facing increases of £28,900 in 2026 and a total of £205,200 over three years — a 115 per cent rise. Despite these pressures, they were excluded from the recent pub relief measures announced by the Government.
The retail and hospitality sectors have called for the business rate reductions to be extended beyond pubs, bars and live music venues to help revive struggling high streets and support economic growth.
A thriving industry shaped by climate change
Chapel Down, England's largest wine producer with over 950 acres under vine and production capacity of 2.4 million bottles annually, has been at the forefront of a remarkable transformation in British viticulture. The industry has expanded rapidly in recent years as warming temperatures have made grape-growing conditions increasingly favourable.
Vineyards now cover around 3,928 hectares across Britain, reflecting a 74 per cent increase in plantings between 2017 and 2022. Average growing-season temperatures in southern England have risen two degrees since the 1970s, bringing large areas of the country into the ideal climatic range for premium grape varieties like Chardonnay and Pinot Noir — the backbone of sparkling wine production.
These champagne grape varieties now constitute over 60 per cent of UK vine plantings. Sparkling wine accounts for approximately 68 to 75 per cent of total UK wine production, with the industry producing over 10.6 million bottles in 2024, up from 5.3 million in 2017.
Kent, where Chapel Down is based, has emerged as the epicentre of this growth. The county accounts for 1,033 hectares under vine — 26 per cent of the country's total plantings — making it the largest wine-producing region in England.
From heritage to prestige
Founded in 1977 in Tenterden, Kent, Chapel Down is the second oldest vineyard in the county. The estate has achieved considerable recognition, with its wines served at high-profile events including the 2011 Royal Wedding of Prince William and Kate Middleton.
The UK wine sector is now considered the fastest-growing wine region in the world, with viticulture officially recognised as the fastest growing agricultural sector in Britain. This rapid expansion has made the industry's relationship with the hospitality sector increasingly important, as hotels and restaurants serve as key distribution channels for premium British sparkling wines.
Pennefather's call for extended business rates relief reflects the industry's view that supporting hospitality venues directly benefits wine producers by maintaining strong sales channels and promoting British wines to domestic and international visitors.
