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.
