Non-domestic Energy Support

Chi Onwurah Excerpts

Monday 9th January 2023 Commons Chamber

[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.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

On Friday I visited Gills convenience store, which provides essential services for constituents in Brakelaw and Fenham. The owners told me that the No. 1 threat to their business was spiralling energy costs, and that message is being echoed by pubs, the hospitality sector, charities, and small businesses across Newcastle. The Minister says that this support will be limited to £400 because, he says, it is not for Government to pay the bills of business. Will he at least agree with me that it is for Government to deliver a sustainable, secure energy market which works for small businesses, and that his Government are entirely failing to do that?

[James Cartlidge]

One of the reasons for the Ofgem review that I have referred to several times is precisely to ensure that we have a non-domestic market that works as effectively as possible for businesses. A situation such as this will bring to the surface problems that businesses would not experience to the same degree in normal times.

Let me make this point to the hon. Lady: not a single Opposition Member has stood up at any point and acknowledged to any degree that we have to consider the cost of these schemes. Of course we have to consider the impact of rising energy prices on businesses, but it was only a few days ago that the leader of the Labour party said that the era of the “big Government chequebook” was over—those were his words. We have to take a balanced approach. We are continuing to provide universal support for businesses, charities and the public sector, and targeted additional support for internationally trading sectors, particularly manufacturing. At the same time, we have to consider fiscal prudence if we are to run a stable and growing economy.