My Lords, leaving the EU gives us a unique opportunity to review our retained EU wine law to ensure that it better suits our domestic needs. The UK wine market was worth more than £10 billion in 2022 in off-trade and on-trade sales and the UK’s developing domestic production sector has attracted significant global investment. It is therefore vital to reform retained EU Laws to give us the opportunity to boost growth and development in our domestic industry and to give it the capacity to tackle future environmental and economic challenges. To do this, the reforms that I am setting out to the House today will address a number of issues faced by our wine businesses. They will remove barriers, support innovation and simplify regulations to help to support growth in our wine trade and production industry, giving them the freedom to meet new and evolving demands while maintaining the high standards that consumers have come to expect.

First, the regulations will amend current importer labelling requirements. The instrument will remove a stipulation that imported wine must show the prefix “Importer” or “Imported by” before the address of the business responsible for importing that wine to England. It will mean that the general food law provisions relating to the identification of the responsible food business operator will apply to wine in the same way as they apply to other food products, without any additional importer labelling requirements in wine law on top of that. Changing importer labelling provisions means that businesses do not have to face unnecessary costs and bureaucratic administrative burdens. With approximately 1.3 billion litres of wine being imported into the UK in the 12 months leading up to December 2022, these burdens from inherited EU labelling rules must be removed. This Government will always stand with businesses to create growth opportunities.

Secondly, we will allow wines with a protected designation of origin to be produced from any permitted grape variety or hybrid variety rather than just the species Vitis vinifera. Permitting the use of non-Vitis vinifera species and hybrid varieties in PDO wines can bring significant benefits to both the industry and to the environment. Hybrid varieties often exhibit higher disease resistance compared to traditional Vitis vinifera varieties. The use of hybrid grape varieties can contribute to greater crop consistency and thus supply chain resilience. These hybrid grapes are often bred to withstand various climatic conditions and soil types, leading to more predictable yields. That predictability can mitigate the impacts of climate-related fluctuations and contribute to a stable supply of grapes, supporting both producers and consumers.

Thirdly, the instrument will remove the ban on the production of piquette, a wine-based beverage produced by adding water to grape pomace. Ending this ban will allow wine producers to create a new product offering using a by-product of the wine production process. This is an exciting and interesting opportunity that the Government want to provide to our wine producers.

The Government will also continue to support the thriving wine industry by enabling the blending of imported wine in England. This reform is permissive in nature, so take-up from the sector is voluntary. Our aim of allowing the blending of any wine in England will enable the wine industry to blend different varieties of wine from the same or various origins to achieve greater consistency in their products and to create entirely new products that suit consumer tastes. The Government are delighted that this measure also offers the opportunity for more British jobs in English wineries and bottling plants.

The Government are also keen to make the recycling of wine bottles easier in line with collection and packaging reforms. The instrument therefore intends to remove the mandatory requirements for foil caps and mushroom-shaped stoppers to be used in the marketing of sparkling wine. In addition to reducing waste, our aim is to make the production of sparkling wine more competitive.

The instrument will remove the wine certification scheme. The Government have listened to our wine industry and acted to remove unnecessary bureaucracy. The Government opposed the wine certification scheme policy as an EU member; now that we have left, we can seize the opportunity to determine our own laws. The instrument therefore intends to remove the wine certification arrangements. The current cost of the application process is £15 plus VAT per varietal wine. By removing the scheme, the relevant wine producers are avoiding that unnecessary cost.

I recognise that a Majority of these first-phase reforms will apply only in England. However, the Welsh Government and Defra have agreed to pursue future reforms together, allowing these benefits to flow to the wine industry across both nations. As we have done from the outset, we continue to encourage Scotland to make similar reforms.

Together, the changes I have set out will liberalise the growing domestic wine industry and address several issues that our wine businesses face. They will remove barriers, support innovation and simplify regulations to help support growth in our wine trade and production industries. These proposed reforms give them the freedom to meet new and evolving demands while also maintaining the high standards that consumers have come to expect.

Our wine industry and producers support the changes set out in this instrument and welcome the flexibility it provides. The Government intend to bring further changes to allow the wine industry the benefits of leaving the European Union. This instrument is part of a broader package of reforms giving our thriving wine and alcoholic drinks sector greater flexibilities that will support it in the future. I beg to move.