Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what support he plans to provide to (a) pubs, (b) social clubs (c) breweries and (d) cider and perry producers for the cost of energy once the Energy Bill Relief Scheme ends; and if he will make a statement.
Answered by Graham Stuart
HMT is currently conducting a review of the Energy Bill Relief Scheme and evidence from care providers is included in that review. The Government cannot confirm which sectors will receive further support after 31st March 2023 until the end of the review, which will report by the end of this year.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of reinstating the freeze in alcohol duty for draught beer and cider.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government keeps the duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.
The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.
The next steps of the Alcohol Duty Review announced in the Growth Plan will continue as planned. This includes the introduction of the new lower duty rate for draught beer and cider due to be implemented from 1 August 2023.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a reduction of VAT on all sales of alcohol and food to protect pubs during the cost of living crisis.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The VAT reduced rate for the hospitality sector was a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It was appropriate that as restrictions were lifted and demand for goods and services in these sectors increased, the temporary tax reliefs were first reduced and then removed.
There are no current plans to reduce the rate of VAT on food or alcohol. VAT is the UK’s third largest tax, and is forecast to raise £154 billion in 2022/23, helping to fund key spending priorities. In addition, this request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum. Nevertheless, the Government keeps all taxes under review.
The Government understands that many businesses, including pubs, are suffering as a result of the energy crisis. Through the Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers until 31 March 2023. The Government intends to provide targeted support to the most vulnerable businesses after this winter.
The Government has also introduced a new draught relief from 1 August 2022 as part of its reform of alcohol duties. This provides a lower duty rate for alcohol that is sold in pubs, provided it fulfils the eligibility criteria of being below 8.5% ABV and sold in containers of 20 litres or more. It will mean, for example, that the duty rate for eligible beer and cider will be approximately 5% lower than the standard rate and will therefore provide long-term support for pubs.
Asked by: Valerie Vaz (Labour - Walsall South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what support his Department is offering to (a) high energy usage small business and (b) small convenience stores in the context of the rising cost of energy.
Answered by Graham Stuart
The recently announced Energy Bill Relief Scheme (https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses) ensures that all businesses and other non-domestic customers are protected from excessively high energy bills over the winter period. A review of the scheme, to be published in three months, will identify the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs after the initial six months.
The Government is also providing support via freezing alcohol duty rates on beer, cider, wine and spirits, and increasing the employment allowance. Government is also providing a 50% business rates relief for businesses across the UK and reducing employer national insurance. This is in addition to the billions in grants and loans offered throughout the pandemic.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential impact of rising energy prices on (a) pubs and (b) breweries.
Answered by Graham Stuart
BEIS is monitoring the impact of energy prices on businesses and recognises the scale will vary depending on business type and type of contract or tariff.
The recently announced Energy Bill Relief Scheme ( https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses) ensures that all businesses and other non-domestic customers are protected from excessively high energy bills over the winter period. A review of the scheme, to be published in three months, will identify the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs after the initial six months.
The Government is also providing support via with business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits, and increasing the employment allowance.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential impact of rising energy prices on the hospitality sector.
Answered by Graham Stuart
The Government is monitoring the impact of energy prices on businesses and recognises the scale will vary depending on business type and type of contract or tariff.
The Government announced a new six-month scheme – the Energy Bill Relief Scheme - to ensure that all businesses and other non-domestic customers are protected from excessively high energy bills over the winter period. After this initial six-month period, the Government will provide focused support for vulnerable sectors, targeted to make sure those most in need get support.
The Government is also providing support via with business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits, increasing the employment allowance.
Asked by: Alex Norris (Labour (Co-op) - Nottingham North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure his taxation and fiscal policy supports the pub industry.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government understands the benefits pubs bring to our communities, recognises the pressures currently facing the sector and is taking action.
Businesses in the retail, hospitality and leisure sector will receive a tax cut worth almost £1.7 billion in 2022-23. Eligible properties will receive 50 per cent off their business rates bill, up to a maximum of £110,000 per business.
Combined with Small Business Rates Relief, this means over 90 per cent of retail, hospitality and leisure businesses will receive at least 50 per cent off their rates bills in 2022-23. The Government has also committed to freezing the multiplier for a further year, which is a tax cut worth £4.6 billion to businesses over the next 5 years.
Further, as part of the alcohol duty reform, the government will introduce a new draught relief, giving an approximate 5% duty cut to cider and beer sold in pubs. The government will provide an update on the alcohol duty reforms over the coming weeks.
Asked by: Ruth Jones (Labour - Newport West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help support pubs in Newport West constituency with increases in the cost of energy.
Answered by Graham Stuart
The Government announced a new six-month scheme – the Energy Price Guarantee for Businesses (EPGB) – to protect all businesses and other non-domestic energy users from soaring energy costs. It will offer comparable support to that being provided for consumers and we expect the scheme to be available in the autumn. After this initial six-month scheme the Government will provide focused support for vulnerable sectors, targeted to make sure those most in need get support.
The Government is also supporting pubs with business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits, and by increasing the employment allowance.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take to assist (a) pubs, (b) bars and (c) restaurants with rising energy bills.
Answered by Graham Stuart
The Government announced a new six-month scheme – the Energy Price Guarantee for Businesses (EPGB) – to protect all businesses and other non-domestic energy users from soaring energy costs. It will offer comparable support to that being provided for consumers and we expect the scheme to be available in the autumn. After this initial six-month scheme the Government will provide focused support for vulnerable sectors, targeted to make sure those most in need get support.
The Government is also supporting pubs with business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits, and by increasing the employment allowance.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of adopting equal tax treatment for beer and cider.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Government is currently undertaking a review of alcohol duties in order to simplify the system and make it fairer overall, including ensuring beer and cider both pay duty according to their alcoholic strength.