Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Government provides diverse financial support to businesses beyond energy specific schemes.
Conclusion
HM Treasury told us it was providing a range of support to businesses and the public sector through a number of measures, not just the energy support schemes. For example, it pointed to support provided through: covid support schemes; a reduction in business rates and funding paid via local authorities. HM Treasury told us that it had looked at how the tax systems were helping high street businesses and hospitality and leisure businesses and that although the EBDS might not be the right way to support pubs with their energy bills that there were levers government can use. It also highlighted support provided to pubs, such as freezing alcohol duty.53
Government Response Summary
The government, perceiving an implicit recommendation, states it agrees and has implemented it. It outlines its commitment to reviewing the tax system and reliefs, engaging with stakeholders, and commissioning an evaluation of the energy support schemes, confirming that the EBDS will provide a discount for 12 months.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 When keeping the tax system and reliefs under review, HM Treasury takes into account cost, wider pressures on that sector and how taxes affect the broader economy. HM Treasury carefully considers the impact that a relief will have on different industries and engages with a wide range of stakeholders to inform this analysis. The government does consider the impact of the overall tax burden – including business rates – on different sectors and did so for changes in March 2023. 4.3 The government introduced the Energy Bill Discount Scheme (EBDS) from April 2023 to ensure eligible businesses with will receive a discount on their bills for a further 12 months following the end of the EBRS. To design the EBDS, the Department of Business, Energy & Industrial Strategy (BEIS) developed a framework to assess which sectors may be most affected by rising energy prices. 4.4 HM Treasury has provided further detail of the analysis performed to aid decisions on tax and energy measures in a letter to the Committee sent alongside the publication of this Treasury Minute. 4.5 The Department for Energy Security and Net Zero will publish the scale of the discounts provided under the EBDS, including to Energy and Trade Intensive Industries (ETIIs), on Gov.uk on a monthly basis. The department is commissioning an evaluation of the energy support given to organisations under the EBRS and EBDS, including ETIIs. This involves research with ETIIs on their awareness, experiences, perceptions and the support that they have received. The overall effectiveness of delivery, impact and value for money of the schemes will be assessed. The evaluation is expected to run until summer 2025 and the findings will be shared with the Committee when available.