Non-domestic Energy Support

Alison Thewliss Excerpts

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

On the point of going under as a result of the delayed announcement of the results of the review, we were due to announce on the last sitting day before recess, and we have announced on the first sitting day—it is a delay, but not a huge one. In that time, those businesses, whatever they are, will have been benefiting from the current support running until the end of March. We have now given them certainty for the next 12 months with a scheme that remains generous and universal. It is not as generous as before but I can confirm that it will include the sub-post office.

[Alison Thewliss (Glasgow Central) (SNP)]

The Minister seems to be missing the point. Many businesses I speak to are now locked into impossibly expensive contracts. They have no choice. That is not just the cost per unit but the standing charges that they are asked to pay. The best deal that the charity Toryglen Community Base in my constituency could get was to go from £9 k a year to £62 k a year. The food manufacturer Calder Millerfield is paying six times more now than it was before—that is what it has been offered with the Government support at its current rate. Many small businesses and hospitality businesses in Glasgow Central are facing the same. What will the Minister do about these hopelessly expensive contracts that businesses are being locked into now at these high prices? What negotiation is he doing with the energy companies to bring those prices down? They will push businesses under more than anything else.

[James Cartlidge]

I was absolutely clear in my statement that the precise reason that we are continuing the universal support is for those very companies, charities or other public sector organisations that fixed while prices were higher and have since reduced. We have precisely those companies in mind, but it is also for those companies that may currently be on a lower tariff that is about to finish, who had a long-term fix from some years ago when energy was much cheaper. The point is that it is another 12 months of security. It is right that it is not as generous as it was, but when speaking to stakeholders there was no expectation that a Government would continue a level of support costing £18 billion for six months. That is a very expensive intervention. This remains a significant intervention and will remain generous for charities, businesses and public sector institutions.