Oral Answers to Questions

Peter Aldous Excerpts

Tuesday 7th February 2023 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

10. What fiscal steps he is taking with Cabinet colleagues to support businesses with energy costs.

[Peter Aldous (Waveney) (Con)]

11. What fiscal steps he is taking with Cabinet colleagues to support businesses with energy costs.

[Caroline Ansell (Eastbourne) (Con)]

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

--- Later in debate ---

[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.

[Peter Aldous]

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?

[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. The firms eligible for the scheme are those operating within sectors that fall above the 80th percentile for energy intensity and the 60th percentile for trade intensity, and those operating within sectors that are eligible for the existing energy-intensive industries compensation exemption scheme. As ever, my hon. Friend is welcome to write to me about the specifics.