Commons Sense

House of Commons · Ministers' Questions

Energy Costs: Support for Businesses

Tuesday 18 November 2025 · 5 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 5 Not answered 0

Key points

  • Businesses in Harpenden and Berkhamsted are facing severe challenges due to increased energy costs and national insurance.
  • UKHospitality estimates that the hospitality sector contributes 8 billion annually to the Scottish economy, with concern over increased energy standing charges.
  • Increased help is being given to energy-intensive industries like Tata's Llanwern works through an increase in the electricity network charges discount.

Topics (select to filter)

Questions & Answers

Q1 Victoria Collins Lib Dem Harpenden and Berkhamsted
Energy Business & Trade
Context

Redbournbury Mill and Total Cow Burger in Redbourn have written to Victoria Collins about the rising energy costs, which are exacerbating their financial difficulties.

Question

Businesses across my constituency, such as Redbournbury Mill and Total Cow Burger in Redbourn, have written to me about the crippling increases in energy costs. Coupled with the increased cost of national insurance and business rates, that means they are struggling to keep going. Ahead of the autumn Budget, will the Government commit to break the link between gas and electricity prices, as the Liberal Democrats have called for, to provide much-needed relief for businesses and families?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)

I acknowledge the work the hon. Member does in Parliament on energy-related issues and her Adjournment debate on high street businesses; that theme clearly runs through a lot of her work. She is right to point out the fundamental weakness we have that, when it comes to our investment in renewable energy, the price is ultimately set by gas. We want to address that through our clean power mission.

Partly answered

Not addressed: Commitment to break the link between gas and electricity prices ahead of the Autumn Budget

How: We Want To Address That Through Our Clean Power Mission

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Q2 Christine Jardine Lib Dem Edinburgh West
Energy Business & Trade
Context

UKHospitality estimates that the hospitality sector contributes £8 billion a year to the Scottish economy, and many businesses in this sector are concerned about rising energy costs.

Question

UKHospitality estimates that the industry contributes £8 billion a year to the Scottish economy. A major increase in standing charges would hit it hard. Many businesses in the sector are energy-hungry—for example, distilleries, pubs and restaurants—and across my constituency there is concern about the winter ahead. They want to know what this Government will do to protect them and ensure fairness for small businesses.

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)

I do understand just how important the hospitality sector is to the hon. Member and her constituents, as a major part of the local economy. The Government’s clean power mission—investing in renewable energy, lifting the onshore wind ban and investing in offshore wind at pace—is bringing down energy costs and will bring down energy costs from 2030 onwards. The crucial challenge is how we help businesses to manage the transition between now and 2030. Measures such as the British industrial competitiveness scheme, which was announced in our industrial strategy, will support over 7,000 businesses across the country.

Partly answered

Not addressed: Specific measures for small businesses in the hospitality sector before 2030

How: Government’S Clean Power Mission, British Industrial Competitiveness Scheme

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Q3 Jessica Morden Lab Newport East
Energy Business & Trade
Context

Tata's Llanwern works in Newport faces challenges competing with other European steel producers due to high energy costs.

Question

I very much welcome the increased help the Government are giving to energy-intensive industries such as Tata’s Llanwern works in my constituency through the increase to the electricity network charges discount. However, given that they still face problems competing with other European steel producers, may I urge the Minister to keep discussing with ministerial colleagues and trade unions what further measures we could take to protect them and shield them, to the benefit of sites such as Llanwern?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)

I thank my hon. Friend for raising the issue of Llanwern; it is a site that I know very well and have worked on in the past. She is right to raise the competitiveness of energy-intensive industries. In my earlier answer, I talked through a number of measures we are taking to reduce levies and energy costs for those industries, but she can rest assured that I continue to look at whether anything more can be done.

Partly answered

Not addressed: Further specific measures to protect Tata’s Llanwern works

How: Continue Looking At What More Can Be Done

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Q4 Dave Robertson Lab Lichfield
Energy Business & Trade
Context

The ceramics industry in Dave Robertson's constituency, including Armitage Shanks, faces high energy costs and competitive pressures.

Question

The ceramics industry across the country is foundational to every single part of the Government’s industrial strategy. Ceramics is an energy-intensive industry. Can the Minister confirm whether recent discussions about high energy costs for business have made mention of ceramics, an energy-intensive industry with deep roots in my constituency, where Armitage Shanks has been operating for over 200 years?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)

I was pleased to meet my hon. Friend recently to discuss Armitage Shanks. I am concerned about the ceramics businesses in his constituency and across the region. We want those businesses to be competitive, and while much of our earlier discussion was about electricity prices, for ceramics and many other energy-intensive industries, the issue is gas. After policy costs, the UK is competitive with many European countries on gas, but I understand that there are competitive pressures from outside the EU, and I will continue to engage with him and the ceramics sector to look at these issues.

Partly answered

Not addressed: Specific discussions about high energy costs for ceramics industries

How: Continue Engaging With Ceramics Sector

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Q5 Tim Farron Lib Dem Westmorland and Lonsdale
Energy Business & Trade
Context

The recent Cumbria Tourism business survey showed that many businesses in the tourism industry are struggling to pay their energy bills, with some considering selling up or closing down.

Question

The recent Cumbria Tourism business survey showed that 56% of businesses are struggling to pay their energy bills, with an astonishing 14% actively considering selling up or closing down. Once a community loses its pub, it loses its heart, and it very rarely gets it back. Ahead of the Budget, will the Minister speak with the Chancellor and others in the Treasury to back the Liberal Democrats’ call for a 5% cut in VAT to support this vital industry, which is, after all, at the forefront of sustainable business practices and at the heart of so many of our communities?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)

I must admit that, as a regular tourist to Cumbria myself, I absolutely appreciate the joys of a countryside pub in the hon. Member’s constituency, and I understand the pressures that they are under. I will leave any commentary on the Budget to the Chancellor at the appropriate time, but rest assured that every day in this job I am making the case for increased competitiveness in British industry.

Partly answered

Not addressed: Supporting a 5% cut in VAT for hospitality businesses

How: Leaving Commentary On The Budget To The Chancellor

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