Commons Sense

House of Commons · Ministers' Questions

Businesses: Energy Costs

Tuesday 7 February 2023 · 7 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • Ministerial support for hospices with energy costs is under consideration due to public fundraising challenges.
  • Government steps are being taken to protect energy-intensive industries from high energy prices.
  • Metal finishing businesses, crucial for strategic industries, are not qualifying for additional support available to other sectors.

Topics (select to filter)

Questions & Answers

Q1 Caroline Ansell Con
Economy Energy
Context

The MP is concerned about the high energy costs faced by hospices, which are impacting their operational budgets.

Question

What fiscal steps his Department is taking to support hospices with energy costs?

Answer from James Cartlidge

I pay tribute to St Wilfrid's Hospice, and to all those who fundraise to support it. My hon. Friend is absolutely right to raise this issue. As I said to the hon. Member for Denton and Reddish (Andrew Gwynne), we could have chosen to have a much more targeted scheme, which we said we would consider, but in fact we have continued with a universal scheme, covering not just businesses but charities and the public sector. That includes hospices. This new scheme will enable hospices locked into contracts signed before recent substantial falls in the wholesale price to manage their costs and provide others with reassurance against the risk of prices rising again.

Partly answered

Not addressed: Did not specify any direct financial aid or measures specifically for hospices, beyond referencing a broader scheme.

How: Generic Answer

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Q2 David Evennett Con
Energy Business & Trade
Context

The MP is concerned about the financial impact of high energy prices on businesses in his constituency, particularly those in energy-intensive sectors.

Question

Businesses in my constituency are grateful for all the support that the Government have given them over the past few very difficult years—they appreciate that—but what steps are the Government taking to protect energy-intensive industries from high energy prices?

Answer from James Cartlidge

My right hon. Friend is right to highlight not only the generosity of the support but the issues facing specific sectors. The Treasury recognises that some businesses are highly exposed to both energy prices and international competition, which means that they are unable to pass on or absorb these higher costs. Following the review of the operation of the current energy bill relief scheme, we decided to target additional support beyond April this year at the most energy and trade-intensive sectors, which are primarily manufacturing businesses.

Partly answered

Not addressed: Did not specify any exact measures or figures for protecting specific industries from high energy prices.

How: Generic Answer

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Q3 Peter Aldous Con
Defence Energy Business & Trade
Context

The MP is concerned about metal-finishing businesses losing business to overseas competitors due to high energy costs and lack of specific government support.

Question

Metal finishing is a vital component of many strategic industries, including defence, aerospace and energy. Although the process is extremely energy-intensive, businesses such as MP Eastern in Lowestoft do not currently qualify for the additional support that is available, and are therefore losing business to overseas competitors. In order to stop that, strengthen our own supply chain and enhance national security, will my hon. Friend review the support that is available to metal-finishing businesses?

Answer from James Cartlidge

My hon. Friend and county colleague is always championing his local businesses in the Chamber—[Interruption.] I am glad that the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) agrees with me that my hon. Friend is a stalwart champion of his constituency businesses. We have taken a consistent approach to identifying the most energy and trade-intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for ETII support.

Not addressed: Did not address the specific request for reviewing support measures for metal-finishing businesses.

How: Generic Answer

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Q4 Caroline Ansell Con
NHS Energy
Context

The MP is concerned about the impact of soaring energy costs on a local hospice, which has pursued efficiency measures and relies heavily on public support.

Question

St Wilfrid's Hospice in Eastbourne has just celebrated its 40th anniversary. Some 70% of its running costs are met by the generous public, who love and appreciate all that it does at the end of life, and next month they are literally walking over hot coals in its support. The nature of the setting means that the hospice cannot readily change the thermostat. It has pursued renewables, and the building is efficient. In short, it is doing all it can. After May, its energy costs are predicted to soar by 285%. What support can my hon. Friend outline for St Wilfrid's, so that energy hikes will not cost therapies, in-patient beds or nursing hours in the community?

Answer from James Cartlidge

I pay tribute to St Wilfrid's Hospice, and to all those who fundraise to support it. My hon. Friend is absolutely right to raise this issue. As I said to the hon. Member for Denton and Reddish (Andrew Gwynne), we could have chosen to have a much more targeted scheme, which we said we would consider, but in fact we have continued with a universal scheme, covering not just businesses but charities and the public sector. That includes hospices. This new scheme will enable hospices locked into contracts signed before recent substantial falls in the wholesale price to manage their costs and provide others with reassurance against the risk of prices rising again.

Partly answered

Not addressed: Did not specify any direct financial aid or measures specifically for St Wilfrid's Hospice, beyond referencing a broader scheme.

How: Generic Answer

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Q5 Barbara Keeley Lab
Economy Culture, Media & Sport
Context

The MP is concerned about the potential impact of reducing cultural tax reliefs on arts organisations, which are already struggling due to high energy bills and reduced audience footfall.

Question

Arts organisations have been hit by rocketing energy bills at the same time as audience footfall remains depressed by the cost of living crisis and the residual effects of the covid pandemic. The current rates of cultural tax reliefs were introduced to help theatres, orchestras, museums and galleries to recover during the pandemic, but some orchestras are now saying they are unlikely to survive if the tapering of that 50% orchestral tax relief goes ahead. Will the Minister and the Chancellor look at this urgently and review the reduction from 31 March of this vital support to arts organisations?

Answer from James Cartlidge

If the hon. Lady provides me with the details, I will be more than happy to do that.

Not addressed: Did not commit to any action or review, merely offered vague willingness to look at specifics.

How: Generic Answer

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Q6 Emma Hardy Lab Kingston upon Hull West and Haltemprice
Economy Business & Trade
Context

The MP is concerned about the financial sustainability of small businesses due to high energy costs, which may be exacerbated by future rate increases.

Question

On Friday I met representatives of the Federation of Small Businesses and of small businesses in my constituency, and the message from them is that they are extremely worried about their future, about their sustainability and about energy costs. One of the points they highlighted was their concern about what will happen to their energy costs after April. Will the Minister look at matching what the Labour party is proposing, which is cutting small business rates to enable small businesses to save up to £5,000 a year, to ensure that they can continue not just for this year but going into the future?

Answer from James Cartlidge

I have also met the FSB. The one crucial point I would make is that I understand why businesses are concerned in these very challenging times—I ran a small business myself before entering Parliament—but we have to balance out the costs of these schemes to the Exchequer. We have to run sound public finances, not least because that engenders a platform of stability and confidence, which is in the interest of every single business in this country.

Not addressed: Did not address the specific proposal for cutting small business rates or even discuss energy costs specifically.

How: Generic Answer

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Q7 Peter Grant SNP
Economy Energy Business & Trade
Context

Retail businesses are struggling with increased overheads and customers unable to afford essential services like electricity, while energy companies report record profits.

Question

How can a small retail business survive with an annual increase of over £100,000 in overhead costs when its customers cannot afford their electricity bills? Is this related to BP shareholders celebrating the highest profits in company history? Where might the tax revenue come from to support businesses and households?

Answer from James Cartlidge

We have introduced two new levies: the energy profits levy on North Sea oil and gas and the electricity generators levy. The Minister invites the questioner to write with specifics about the mentioned case for further consideration.

Partly answered

Not addressed: The specific ask regarding tax revenue sources was not addressed directly, only inviting a letter with specifics.

How: Look Forward To Receiving That Letter

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