Energy Costs Support for Businesses 2023-05-09
2023-05-09
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Small businesses in Edinburgh West are struggling due to high energy costs, exacerbating the cost of living crisis and leading to potential closures. The Federation of Small Businesses estimates that 93,000 small businesses could go out of business this year.
What fiscal steps is the government taking to support businesses with energy costs? Speaking to businesses in my constituency over the past week, I have heard they are not finding sufficient help. The combination of cost of living crisis, energy costs, and business rates is pushing them towards a crisis. Do the Government accept that more will have to be done, particularly to help small companies renegotiate tariffs?
The hon. Lady raises an important point; this Government are very aware of the issues faced by businesses across the country. Last year, the energy bill relief scheme was unprecedented and time-limited as wholesale gas prices fell significantly. The current energy bills discount scheme supports businesses for another year while limiting taxpayers' exposure to volatile energy prices.
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Assessment & feedback
The specific ask about renegotiating tariffs was not addressed directly.
Response accuracy
Q2
Partial Answer
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Context
Small businesses in Edinburgh West are struggling due to high energy costs, exacerbating the cost of living crisis and leading to potential closures. The Federation of Small Businesses estimates that 93,000 small businesses could go out of business this year.
Speaking to businesses in my constituency over the past week, I have heard they are not finding sufficient help. The combination of cost of living crisis, energy costs, and business rates is pushing them towards a crisis. Do the Government accept that more will have to be done, particularly to help small companies renegotiate tariffs?
The hon. Lady raises an incredibly important point; this Government are very alive to the issues that businesses face across the country. Last year, the energy bill relief scheme was unprecedented and time-limited as wholesale gas prices fell significantly. We have the current energy bills discount scheme which supports businesses for another year while limiting taxpayers' exposure to volatile energy prices.
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Assessment & feedback
The specific ask about renegotiating tariffs was not addressed directly.
Response accuracy
Q3
Partial Answer
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Context
Hoteliers in Aberconwy are facing tripling bills despite falling market rates, suspecting unfair practices by suppliers. The Treasury had quickly acted during the pandemic but now hoteliers need support.
The Treasury was quick to act during the pandemic when hoteliers told me that banks were directing them to premium lending products instead of the Government's coronavirus business interruption loan scheme. Now those same hoteliers are telling me they are seeing their bills tripling just as market rates drop below Government support levels, fearing unfair practices by suppliers. Can he please tell me what he is doing and can he meet me and sector representatives to bring common sense back to energy supply contracts?
My hon. Friend is a great champion of businesses in his constituency; I advise businesses always to contact suppliers to discuss their contracts. We are aware that some businesses have difficulties securing benefits from falling wholesale prices. In January, the Chancellor wrote to Ofgem which has now launched an investigation into the non-domestic energy market and we await its conclusions.
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Assessment & feedback
The specific ask about meeting sector representatives was not directly addressed.
Response accuracy