Rachel Reeves is now taxing a booming UK industry 'out of existence'

Rachel Reeves must stop taxing the UK's booming wine industry "out of existence", industry chiefs have warned. Investors and local business bosses have been piling funds into English vineyards because of warmer summers and longer harvest seasons.

But a hike in various taxes means the industry is at risk. Victoria Vyvyan, president of the Country Land and Business Association, said: "British winemaking could lead the world, if only government stopped taxing it out of existence.

"At over £2.50 per bottle, we have one of Europe's steepest wine duties. France only charges €0.03, which makes a big difference. Our crippling taxes mean that for a £10 bottle of wine, British producers often pay more in duty than they take home in profit.

"New inheritance tax rules and national insurance hikes are only adding to the strain. They're making it harder for vineyards to hire, invest, and plan for the future - just when they should be taking off.

"Labour says it wants growth. It should start by backing an industry ready to deliver it. End the attacks on rural business, and British vineyards will do the rest: creating jobs, boosting tourism and producing a new symbol of British excellence."

Chris White has been the CEO of 380-acre Denbies Wine Estate, in Dorking, for more than 20 years.

But the vineyard boss says the industry is at "creaking point" with the last year being "the most difficult" yet.

Chris, whose father created the vineyard in 1986, told how he has been holding back on investment because of uncertainty and rocketing levies.

When asked whether the past year had been the toughest yet, he said: "It has in terms of decisions we're having to make. We're very much a business looking for growth. We've grown dramatically. We've never taken any money out of the business. We've re-invested in it for growth which is why we're now a big local employer but for the first year ever, we're just looking to hold back on any investment to make sure we've got clarity."

He told how the family-run business is sitting on investment it could be making which is "not a position we like to be in".

Denbies, one of England's largest single estate vineyards, faces hikes in taxes on both the hospitality and viticulture sides of the business.

It has battled increases in corporation tax, business rates and employers' national insurance.

Chris said: "We want to make sure we can maintain, enhance and build up our own staff and expertise and you can only do that by investing more in it. You need more money to do that. We're at squeaking point on future investment because everything's going on taxes at the moment."

The estate has also had to diversify dramatically to ensure the business's survival, including the opening of an art gallery, hotel and a football pitch to boost grassroot sports.

When asked what his message to Chancellor Rachel Reeves was ahead of her budget next month, he said: "help".

The Government has already paved the way for more tax rises to come to fill a more than £25billion hole in the UK public finances.

Chris said: "We just need a bit more help. We just need a bit more clarity. There's been a lot of doom mongering at the moment about stuff.

"We need them to say we're here to support you. We want a few reliefs to make sure we can remain competitive. We just want to remain competitive with people around the world. We're quite happy to fight but we want a square level playing field with everyone else and we just haven't got that at the moment."