To ask Her Majesty's Government what plans they have to introduce an emergency financial support package for the hospitality sector.
Answered on
28 September 2022
The Government appreciates that many businesses are exposed to increased energy costs, driven by global factors.
The new Energy Bill Relief Scheme (EBSS), unveiled on 21 September, will provide a discount on wholesale gas and electricity prices for businesses, including those in the hospitality sectors. This will apply to fixed term contracts – agreed on or after 1 April 2022 – as well as deemed, variable and flexible tariffs and contracts. The guarantee will apply to energy usage from 1 October 2022 to 31 March 2023, and this support will be automatically applied to bills.
The Growth Plan (2022) fulfilled the Government’s commitments to cut taxes and set the direction for regulatory reform. The planned rise in the rate of Corporation Tax will not go ahead and the Annual Investment Allowance will be permanently set at £1 million, freeing businesses to invest and grow. The reduction in the rate of National Insurance will make it cheaper for businesses to employ staff and pay higher wages; and reforms to Universal Credit will ensure claimants are supported to seek more and better paid work. In the coming weeks, the Government will set out further supply side reforms which will promote growth and ease the burden on businesses.
This is in addition to the 50% business rates relief for eligible hospitality businesses, and the increased Employment Allowance worth up to £5,000.
The Government has taken action to protect businesses from soaring energy costs and provided them with the certainty they need to plan, invest, and grow.