Tuesday 22 November 2022

Campaign reply - Please help pubs and brewers to keep the lights on this winter and beyond

Thank you for contacting me about support for pubs.

Pubs up and down the country play a vital role not only in the economy but in our local areas, supporting a sense of community and pride. After nearly two years of difficulties as a result of the pandemic, pubs have returned to business as usual.

You will be reassured to know that through the new Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have been significantly inflated in light of global energy prices. This will include all UK businesses and will be equivalent to the Energy Price Guarantee put in place for households.

This will see the Government set a Supported Wholesale Price which is a discounted price per unit of gas and electricity. This price is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter.

It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will be applied until 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

By January 2023, the Government will bring forward proposals to support energy bills beyond April 2023. Full details will be made available then, but I know that the Government will focus this support where it is needed most for energy intensive industries, small businesses, and the hospitality sector.

The Government is committed to supporting our pubs. Its long-term strategy for the hospitality sector includes an extension to pavement licences, making it easier and cheaper for pubs, restaurants and cafes to make outdoor dining a reality with seating, tables and street stalls to serve food and drinks. This will be implemented through the Levelling Up and Regeneration Bill.

Additional funding also aims to support community groups to protect and take over local assets, like pubs, which are at risk without community intervention. The £150 million Community Ownership Fund allows community groups to buy assets so that they can continue to serve their local area. I am aware that rural pubs were among the local assets allocated funding in the scheme's first round, giving them a new lease of life for generations to come.

Moreover, small businesses will be shielded from most tax rises and will be protected from increases through the Small Profits Rate and Employment Allowance. This means only the largest ten per cent of companies will pay the top rate of Corporation Tax and 40 per cent of all businesses will be unaffected by the freeze in National Insurance thresholds.

Thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.


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