Non-domestic Energy Support

Debate between Wendy Chamberlain and James Cartlidge

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

I was absolutely clear in my statement that the precise reason that we are continuing the universal support is for those very companies, charities or other public sector organisations that fixed while prices were higher and have since reduced. We have precisely those companies in mind, but it is also for those companies that may currently be on a lower tariff that is about to finish, who had a long-term fix from some years ago when energy was much cheaper. The point is that it is another 12 months of security. It is right that it is not as generous as it was, but when speaking to stakeholders there was no expectation that a Government would continue a level of support costing £18 billion for six months. That is a very expensive intervention. This remains a significant intervention and will remain generous for charities, businesses and public sector institutions.

[Wendy Chamberlain (North East Fife) (LD)]

Since the autumn statement, I have raised the case of an agricultural food manufacturer in my constituency in relation to energy support four times. Despite positive noises in the Chamber and its offer to engage in the review, to date we have heard nothing back. I have two questions for the Minister. First, will the review be published on gov.uk so that we know exactly who has been consulted? Secondly, he mentioned the different centiles, but what if a business disagrees with the Government’s assessment? Who does it appeal to? Who is the ultimate arbiter?

[James Cartlidge]

If the hon. Lady has a business that wrote in to the Department to contribute to the review and did not receive a response, I would be grateful if she forwarded me a copy of that correspondence so that I can look into it.

Oral Answers to Questions

Debate between Wendy Chamberlain and James Cartlidge

Tuesday 20th December 2022 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

2. What assessment he has made of the implications for his policies of trends in the level of energy producer profits in the last 12 months.

[The Exchequer Secretary to the Treasury (James Cartlidge)]

The structure of the electricity market means that the price of electricity is tied to the wholesale gas price. Russia’s invasion of Ukraine triggered an unprecedented increase in gas prices, driving energy prices to eight times their historic levels. As a result, many energy generators’ profits are well above pre-crisis levels. As announced at the autumn statement, the Government are introducing a temporary 45% tax on extraordinary returns made by some UK electricity generators from 1 January.

[Mr Speaker]

I call Wendy Chamberlain, whose birthday it is today. Happy birthday.

[Wendy Chamberlain]

Thank you, Mr Speaker.

Shell announced worldwide profits of £8.2 billion and £9 billion for the three-month period between July and September and the three months to June. BP announced more than double its profits for the same period. They have increased their dividend payments and spent billions buying back their own shares from the market. Shell says that it does not expect to pay any windfall tax at all this year and BP said that it would pay £678 million. Does the Minister agree that, if the Government had implemented a proper windfall tax that captured these things, we could be supporting offshore customers such as my own in North East Fife?

[James Cartlidge]

Obviously, the hon. Lady knows that we do not comment on the commercial decisions of individual companies. What I can confirm is that the specific levy to which she refers—the energy profits levy—will contribute £40 billion to the Exchequer. We must remember that that £40 billion will play a key part in enabling us to afford the support that we are giving to constituents throughout the United Kingdom this winter and next year, which will total, for businesses and households, more than £100 billion, and the Office for Budget Responsibility has already found that that will help to reduce inflation overall.

Alcohol Duty

Debate between Wendy Chamberlain and James Cartlidge

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

I am grateful to my right hon. Friend for his kind words. My first ever Parliamentary Private Secretary job was as a PPS to him, as a brilliant Health Minister. He mentioned simplicity: he is absolutely right that that is a key part of the reform package. In terms of the wine easement, as we call it, the 18 months is there precisely to enable the sector to adapt to the changes that are coming. He was also right to emphasise the on and off-trade differences. There is a key point on those differences. It is again about public health. The evidence shows that, while all drinking should be done responsibly, where people are socialising and going to the pub, they are less likely to encounter the more severe end of problem drinking; that is more likely to happen in private. That is one of the reasons why we have the differential.

[Wendy Chamberlain (North East Fife) (LD)]

The Scotch Whisky Association said on behalf of producers that it was furious about the Government’s decision to increase rates of duty in the autumn statement. The freeze is therefore welcome, but distilling is an energy-intensive business. The Minister said that the energy bills report will come in the new year, but the Chancellor assured me at the Dispatch Box during the autumn statement that it would come before Christmas. I would be grateful if he could explain the delay.

[James Cartlidge]

The hon. Lady makes an important point. We are aware of the importance of energy costs. I was absolutely clear just now that we will report in the new year. It has taken slightly longer than expected. These are complex matters. It is complex enough to put in place household support. Non-domestic support is particularly complicated because of the huge range of businesses involved. However, let us be clear what is happening: six months of support since October, worth £18.1 billion for businesses, including pubs, distillers and breweries, with their energy bills. That is huge. Of course, I know that people want to know what happens next and in the new year we will come forward with the results of our review.