Cost of Energy: Support for Businesses

9. What recent discussions he has had with Cabinet colleagues on the potential merits of providing further support to businesses with the cost of energy.

20. What recent discussions he has had with Cabinet colleagues on the potential merits of providing further support to businesses with the cost of energy.

Supporting businesses with the cost of energy is a priority for the Government. We have expanded support through the British industrial competitiveness scheme and increased discounts on electricity network charges, and we stand ready to act if market conditions worsen due to the middle east crisis.

Surelock McGill, based in my constituency, is a world leader in the manufacture of door locking systems. It recently acquired a casting foundry to ensure that its manufacturing process proudly remains entirely in the UK, but the foundry is struggling with ever-increasing energy costs. What will the Government do to support local businesses that are proud to contribute to the UK economy yet seem to be suffering as a result of their determination to keep manufacturing in the UK?

In the specific case that the hon. Gentleman mentions, if the company is operating a ferrous foundry, that will be part of the British industrial competitiveness scheme. If it is a non-ferrous foundry, he may wish to share further details with me, because I have had representations on both copper and aluminium foundries, which I am looking at very carefully.

Not only are small businesses facing increasing energy bills, but they are dealing with prohibitive costs in connecting to the grid when they want to expand. These businesses want to grow, invest and create jobs, and we should be helping them, so what is the Department doing to bring down the cost of grid connection and ensure that the price of accessing reliable power is never the reason that a small business cannot get off the ground or expand?

We are concerned about the ability of businesses to connect to the grid, both to expand and to invest in new production facilities. Part of the work we did on reordering the grid queue was to help with that, but my colleague the Minister for Energy has commissioned an Ofgem end-to-end review so that we can bear down on the cost of grid connections.

From Denby Pottery to Royal Crown Derby, soaring energy costs are hitting our ceramics industry hard, putting more skilled jobs at risk. I welcome the recently announced ceramics support package, which will help bring costs down, but can the Minister confirm that he will work with colleagues across Government to ensure that energy bill support reaches the ceramics manufacturers who need it the most?

I thank my hon. Friend and all the other MPs from the Stoke and Staffordshire area for their work in championing the ceramics industry. First, let me say how sad I was to hear the news about Denby, as that company proceeds into administration. The Government are providing support to the workforce. On the point he raised, with the Chancellor of the Exchequer’s support we are providing £120 million to enable ceramics companies to invest in lower carbon production—essentially, electrical furnaces—so that they can decarbonise and reduce their operating costs. I will be working closely with ceramics MPs on the implementation.

I thank the Minister for his answers so far. I have recently written to the Department for Business and Trade about the Lea Valley growers, who are fantastic fruit and veg glasshouse growers in my constituency of Harlow. That hugely energy-intensive business is important to food security, and indeed to this country’s security more generally. What work is the Minister doing across Departments and with the Department for Business and Trade to ensure that no energy-intensive business, including the Lea Valley growers, is forgotten?

I thank my hon. Friend for his letter on the Lea Valley growers. I have had discussions as a result of his prompting with Ministers in other Departments, not only about the Lea Valley growers, but about the horticulture sector more generally. I will update him on that in response to his letter. I thank him for saying that my answers so far have been acceptable, and hopefully that one is too.