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 is taking to help businesses facing high inflation.

The Government has provided around £400 billion of direct support for the economy since the start of the pandemic, which has helped to safeguard jobs, businesses and public services in every region and nation of the UK – this includes the £1 billion Omicron package of support announced in December, which was focused on supporting the hospitality, leisure and cultural sectors.

Now that we have returned to Plan A and as individuals and businesses learn to live with Covid-19, it is right that this exceptional support comes to an end as planned. This is vital for a strong economy and to help rebuild the public finances. However, support is being withdrawn gradually, so that businesses can plan and adjust over time.

Government also recognises the role that energy plays in inflation and impact on businesses of all sizes. Higher wholesale gas prices have been seen internationally in 2021. This has been due to multiple international factors in supply and demand.

Ofgem and the Government are in regular contact with business groups and suppliers to understand the challenges they face.

The Government understands the pressure that a higher cost of living places on people. We are working with international partners to tackle global supply chain issues and is providing support worth over around £12 billion this financial year and next to help people with the cost of living, as well as a package of support to help households with rising energy bills, worth £9.1 billion in 2022-23.