Oral Answers to Questions

Anna Firth Excerpts

Thursday 23rd March 2023 Commons Chamber

[Kevin Hollinrake]

The Government have not taken away support; they have replaced one scheme with another. The scheme we have now reflects the fact that wholesale prices have come down significantly since the peak between July and December last year. Of course, we are concerned about businesses that are suffering, particularly those that entered into contracts between July and December on fixed rates that last up to a year. We are working with Ofgem and suppliers to see what can be done to ensure that those businesses are not unfairly treated.

[Anna Firth (Southend West) (Con)]

Does my hon. Friend agree that the tax cut for business worth £25 billion in the Chancellor’s Budget will benefit national and international businesses in the new powerhouse city of Southend such as Olympus KeyMed and ESSLAB, incentivising investment, boosting growth and delivering more jobs not just in Southend but across the UK?

[Kevin Hollinrake]

What an excellent question—I absolutely agree with my hon. Friend. In previous Budgets, the Chancellor has set the annual investment allowance effectively for SMEs at £1 million; that is permanent policymaking. He has now introduced full expensing across the piece, which, as she says, costs around £9 billion a year. We are the only country in the developed world, to my knowledge, that has done full expensing across the board in that way, and it will be a massive boost to business investment, not least in Southend.