Tag: Speeches

Fleur Anderson – 2023 Parliamentary Question on Energy Costs for Post Offices

The parliamentary question asked by Fleur Anderson, the Labour MP for Putney, in the House of Commons on 9 January 2023.

Fleur Anderson (Putney) (Lab)

The delay in this statement has already left several businesses in Putney to go under. I am now concerned about the post office in Southfields, where the sub-postmistress thinks they will be unable to continue operating. There will be a community cost if post offices across the country go under as a result of the increase in bills. Has the Minister assessed the impact of the energy crisis on post offices? Can he confirm whether they will be included in the cut-back scheme after March? Could he consider a community impact criteria in the scheme so that there will not be a high cost for our communities in Southfields and beyond?

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.

January 10, 2023
Stephen Kinnock – 2023 Parliamentary Question on German and UK Energy Prices

The parliamentary question asked by Stephen Kinnock, the Labour MP for Aberavon, in the House of Commons on 9 January 2023.

Stephen Kinnock (Aberavon) (Lab)

I am sure the Minister would agree that a key aim of the support scheme must be to ensure that our steel industry can compete internationally on a level playing field. The German Government have guaranteed their steel industry an electricity price of €130 per megawatt hour for 2023. In contrast, what the Minister has announced today only provides our steel industry with a discount on electricity prices above £185 per megawatt per hour. That leaves UK steel producers to pay an estimated 63% more than their German counterparts. Why are the Government once again letting down our steel industry and forcing our steelworkers to compete with one hand tied behind their back?

James Cartlidge

I do not agree about the level of support. I cannot speak for what is happening in Germany, but this remains significantly more generous support for the energy and trade-intensive industries. The hon. Gentleman is right about the figures for this country: the price threshold for the scheme is £99 per megawatt hour for gas and £185 per megawatt per hour for electricity. To be clear, about 60% of the up to £5.5 billion that we have allocated for this scheme would be for the energy and trade-intensive industries. That is more than half of all the funding. It is a significant commitment and includes major manufacturing sectors such as steel.

January 10, 2023
Mike Amesbury – 2023 Parliamentary Question on Businesses Such as the Bulls Head in Frodsham

The parliamentary question asked by Mike Amesbury, the Labour MP for Weaver Vale, in the House of Commons on 9 January 2023.

Mike Amesbury (Weaver Vale) (Lab)

What would the Minister say to Mr Uppall, who runs a vital service—a post office—in Hartford, in my constituency? What would he say to the likes of Alison, the landlady of the Bulls Head in Frodsham, also in my constituency, about his rationale and that of the Government in reducing vital support at this particular time?

James Cartlidge

The hon. Gentleman is absolutely right to raise the points made by his constituents. As I said to the hon. Member for Brighton, Pavilion (Caroline Lucas), we do understand that the way in which prices have risen has caused great anxiety. In Government, however, we have a duty to consider not only what support we can provide, but the cost to the Exchequer. We have to take that balanced approach. The £18 billion six-month scheme that is currently operational is extremely expensive, and, as I said earlier, stakeholders to whom I have spoken, including those in our major industrial lobbying organisations, did not expect support to remain at its former level because of the huge cost. We have to balance this continued support—which will help the businesses and institutions to which the hon. Gentleman has referred—with the need for fiscal prudence.

January 10, 2023
Jonathan Gullis – 2023 Comments on Energy Bills for the Ceramics Industry

The comments made by Jonathan Gullis, the Conservative MP for Stoke on Trent North, in the House of Commons on 9 January 2023.

Jonathan Gullis (Stoke-on-Trent North) (Con)

The statement will be welcomed by many ceramics manufacturers in Stoke-on-Trent North, Kidsgrove and Talke, but they also want to ensure that they are all eligible. The support to date has meant that £4 million has been saved for one of them, but, sadly, hidden clauses, never used before, are being exploited by some energy suppliers that are trying to smack companies such as Churchill China and Steelite with millions of pounds’ worth of costs on the basis of a past spot price. Will the Minister meet me, other Stoke-on-Trent Members of Parliament and Rob Flello, the chief executive of the British Ceramic Confederation, to look at those examples and hold to account the energy companies which are trying to exploit the Potteries?

James Cartlidge

Like my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), my hon. Friend is a champion for that incredibly important industry in his constituency, and he is right to stress the importance of energy support. I entirely understand that there has been great anxiety about the prevailing level of energy costs, and we hope that this package will provide vital help. According to a message that I have received on WhatsApp, ceramics are dealt with in SIC codes 23.1, 23.2, 23.3 and 23.4 and, I think, one more. As for my hon. Friend’s other request, of course I would be happy to meet him to see what more we can do, because this is an important sector for him and, indeed, for the rest of the United Kingdom.

January 10, 2023
Jack Brereton – 2023 Comments on Energy Bills for the Ceramics Industry

The comments made by Jack Brereton, the Conservative MP for Stoke-on-Trent South, in the House of Commons on 9 January 2023.

Jack Brereton (Stoke-on-Trent South) (Con)

Energy-intensive industries, particularly the ceramics industry in Stoke-on-Trent, have been most exposed to global energy price shocks, as they have to fire their wares at over 1,000°C. Many of those businesses have not been eligible for the support received by other energy-intensive sectors. Can the Minister reassure me that all ceramics producers in Stoke-on-Trent will receive the additional support that they need?

James Cartlidge

My hon. Friend is a champion for the ceramics sector, and I know how important it is to the Potteries and to his constituency. If he looks at SIC code 23 in the list of sectors, he will see a range of ceramics industries that are covered. It is worth looking at that list, because there are a great many specific types. Obviously we want to support business as far as possible. As I have said, the qualification for support is for the sector in question to be above the 80th percentile for energy intensity and the 60th percentile for trade intensity, and that is likely to cover much of the ceramics sector.

January 10, 2023
Joanna Cherry – 2023 Comments on Gorgie City Farm and Energy Bills

The comments made by Joanna Cherry, the SNP MP for Edinburgh South West, in the House of Commons on 9 January 2023.

Joanna Cherry (Edinburgh South West) (SNP)

A much-loved institution in my constituency, Gorgie city farm, is facing closure. Its energy bills for 18 months were previously £17,000, but its last bill for just eight months was £27,000—an increase of over 300%. Can the Minister not see that what he is offering is a drop in the ocean for charities like Gorgie city farm? How does he expect fantastic community institutions, such as the city farm in my constituency, to survive crippling costs when what is on offer is such a drastically reduced package?

James Cartlidge

I am grateful to the hon. and learned Lady for mentioning the charity in her constituency. As I said, I appreciate that the energy increase has been a challenge for every type of SME, charity and institution up and down the country. I am sorry to hear about the challenges for Gorgie city farm, which I have not had the pleasure of visiting but it sounds fascinating. Charities have shown huge resilience over the past two years and will continue to receive support with their energy bills from the latest iteration of the discount scheme. I emphasise that there is wider support to help them with their costs, including a reduction in VAT from 20% to 5% and an exclusion from the main rates of the climate change levy on some of the energy they use. The key point is that we are announcing a scheme that is still universal in nature and still includes charities. It is not as generous as before, but when we engaged with stakeholders about the £18 billion six-month scheme, what was interesting was the number of them who remarked that they had not expected that scheme to continue at that level of generosity. They could see the issue about sustainability for the taxpayer, which we all have to understand and address. It is in all our interests, and in the interests of every single business and charity, that this country has sustainable public finances.

January 10, 2023
Greg Smith – 2023 Comments on Padbury Meats and Energy Bills

The comments made by Greg Smith, the Conservative MP for Buckingham, in the House of Commons on 9 January 2023.

Greg Smith (Buckingham) (Con)

I very much welcome the package of support announced this afternoon and the enormity of the total support package, but may I push my hon. Friend a little on what is energy intensive? Padbury Meats, a butcher in my constituency, wrote to me over the weekend. It is a healthy business with a huge gross income per annum, it employs six staff and has no borrowings. Thanks to careful decisions, it managed to buy a freehold and therefore pays no rent, but it has seen a fourfold increase in its energy bills since the invasion of Ukraine and is not making a profit. The owner is personally subsidising the business through their own savings, which is not sustainable. Instead of looking at specific energy-intensive industries, will he look at the proportionality of energy bills to total revenue to determine which businesses, such as butchers who have huge fridges and walk-in freezers, need support?

James Cartlidge

My hon. Friend makes an important point. The first part of my answer may disappoint him, but I want to be clear. The additional support, particularly for manufacturing, is not just about energy intensity but trade intensity. There are two measures that determine if sectors are entitled to support: whether they are above the 80th percentile for energy intensity and the 60th percentile for trade intensity. So, it may be that the sector does not fit in that category. But that is why—I appreciate the support is less generous, but it is still significant—alongside the additional support for the intensive users, there will still be a universal scheme offering a discount from April this year to March next year.

January 10, 2023
Kerry McCarthy – 2023 Comments on Newtown Park Brewing Co. in Bristol

The comments made by Kerry McCarthy, the Labour MP for Bristol East, in the House of Commons on 9 January 2023.

Kerry McCarthy (Bristol East) (Lab)

The Christmas period should be a boom time for hospitality companies; sadly, in Bristol we saw quite a number go under, and energy bills were a huge reason for that. The Newtown Park Brewing Co. was forced to stop production—a 500% increase in its energy bill quote was the final straw. It was not helped by the fact that, when it tried to speak to its energy company about what support was available, its energy company did not know. It said, “We would tell you if we did know, but we have no idea what we can offer you.” Will the Minister ensure that, with packages going forward, everybody is in the know, the details are communicated and there is enforcement so that people get the help that they are entitled to?

James Cartlidge

The hon. Lady asks a pertinent question. I will make a point about hospitality this Christmas. Of course, a particular factor facing hospitality was that people could not get around on our railways to enjoy hospitality at Christmas as they normally would. We all know the reasons for that. It is a great disappointment to me that that industrial action has threatened many otherwise viable businesses up and down the country. However, her question was perfectly fair. Payments should be automatic. I obviously do not know the exact circumstances of, I think, the pub—

Kerry McCarthy

Brewery.

James Cartlidge

Sorry, the brewery that she was talking about. Assuming that it is still going, it would benefit from the scheme; I hope that it can. On whether it would benefit from the universal scheme or the intensive scheme, it would likely be the universal one. If colleagues want to find out whether a particular sector is in the intensive scheme, that information should now be available on gov.uk.

January 10, 2023
Philip Hollobone – 2023 Speech on Energy Support Package for Businesses

The speech made by Philip Hollobone, the Conservative MP for Kettering, in the House of Commons on 9 January 2023.

I welcome the extension of energy price support for non-domestic users. However, may I give my hon. Friend a real-world example of what is happening in the non-domestic sector? A popular local pub in the Kettering constituency emailed me this week. Up to 2 January, it was paying £2,000 a month for electricity. At the end of the contract, its supplier switched it to an out-of-contract tariff of £9,700 a month. The pub went out to the market and, reluctantly, had to agree to a cost of £5,700 a month with another supplier. Surely that is blatant profiteering when one company can offer a price £4,000 a month less than a competitor’s quote. I therefore welcome what he said about getting Ofgem involved as quickly as possible to sort out these rogue suppliers.

James Cartlidge

I pay tribute to my hon. Friend for being an absolute champion for his constituency. I know that he had a question on hospitals earlier and now he is championing his pubs. We all know how important pubs are to all of our constituencies. I will make two points.

First, in response to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) I referred to the letter that the Chancellor is sending today to Ofgem, urging it to update him as a matter of urgency on its review of the non-commercial market. Hopefully, that will look at some of the factors around how contracts operate and, indeed, at whether there are abuses and what can be done about it.

Secondly, one of the reasons we are maintaining universal support is precisely because there will be examples, such as the one my hon. Friend raised, of those who came to the end of a deal and fixed when prices were high, and so will not have benefited, even though prices are falling. This support is there to prevent that sharp cliff edge. It is about getting the balance right.

January 10, 2023
Stewart Hosie – 2023 Speech on Energy Support Package for Businesses

The speech made by Stewart Hosie, the SNP MP for Dundee East and the party’s economic spokesperson, in the House of Commons on 9 January 2023.

Happy new year, Mr Deputy Speaker.

I thank the Minister for his statement and for early sight of it, although I suspect businesses will be as underwhelmed and disappointed by it as they were frustrated by the delay in making it. I am disappointed that the higher level of discount will be removed after March this year, which is less than three months away; it does not give businesses the time or opportunity to plan.

There is also a degree of sleight of hand. I do not think the public will buy the £5.5 billion budgeted between March 2023 and March 2024 being portrayed as a year’s worth of support given that, as the Minister said, the cost of the package for six months to March this year came in at £18 billion. To dress that up as fiscal prudence simply will not wash.

The key thing is that the Minister said that no Government anywhere in the world can permanently shield business from the energy price shock—that mirrors what the Chancellor said a few days ago—and he went on to say that levels of support were time limited and intended as a bridge to allow businesses to acclimatise. May we have an assurance, however, that if this turns out to be not a short-term price shock but a medium-term price problem, this package and the level of the discount will be reviewed before next winter so that we do not have businesses that manage to survive this year falling over next December, January or February because they cannot afford to heat or light or power their workshops?

James Cartlidge

There will have been 18 months of support for non-domestic accounts for businesses, charities and the public sector, in which time we have emphasised—I was very open about this—the need to adapt to the new environment we all face. Everyone is having to do that —households and businesses, and so on. In the autumn statement, the Government announced a new long-term commitment to drive improvements in energy efficiency and to bring down bills for households, businesses and the public sector, with an ambition to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels. Alongside existing support to 2025, the Government committed an additional £6 billion from 2025 to 2028 for energy-efficiency schemes across households, businesses and the public sector.

On the right hon. Member’s point about the £5.5 billion, I do think that we need some perspective, as £5.5 billion is roughly the cost of a 1p cut in income tax. That remains a significant fiscal intervention. It may be that, because of the huge amount of support that has been needed by our country, particularly since the pandemic—we have seen £400 billion-worth of support, and potentially close to £100 billion on energy—a figure such as £5.5 billion does not look as large. Perhaps that is understandable, but, compared with any normal fiscal event, it remains a very significant intervention. As I have said, it could still be worth up to £2,300 for a pub next year and, in our energy and trade-intensive sectors, up to £700,000 for a typical medium-sized manufacturer. That remains very significant support.

January 10, 2023