I am pleased that the Government has provided, and continues to provide, significant support to pubs and the wider hospitality sector. However, following a number of recent visits and meetings with restaurant and pub owners, I fully recognise the challenges they continue to face. Notable among these was the issue of acute labour shortages in the sector and I am currently lobbying to get hospitality workers included on the Shortage Occupations List after having had some success in the last few months on doing this with agricultural workers. You may like to see my question in the Commons last week https://www.laurafarris.org.uk/news/laura-raises-local-concern-about-labour-shortages-parliament
The Long Live the Local campaign also highlighted the following areas:
Energy Bill Relief Scheme
Through the Energy Bill Relief Scheme (EBRS), the Government provided a discount on wholesale gas and electricity prices for all non-domestic customers whose bills have been significantly inflated in light of global energy prices until 31 March 2023.
The EBRS has now been replaced by the Energy Bill Discount Scheme (EBDS) which will run until March 2024. The EBDS will support businesses and other non-domestic customers by providing a discount on gas and electricity unit prices.
Eligible consumers will receive a per-unit discount to energy bills during the 12-month period from April 2023 to March 2024. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain and Northern Ireland these maximum discounts have been set at:
- electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
- gas - £6.97 per MWh with a price threshold of £107 per MWh
Business rates
From 1 April 2023, business rate bills in England have been updated to reflect changes in property values since the last revaluation in 2017. A package of targeted support worth £13.6 billion over the next five years will support businesses as they transition to their new bills, protect businesses from the full impact of inflation, and support our high streets. English Local Authorities will be fully compensated for the loss of income as a result of these business rates measures and will receive new burdens funding for administrative and IT costs.
The Government is publishing a summary of responses to the Business Rates Review technical consultation, which closed in February 2022. This reconfirms the Government’s commitment to the Non-Domestic Rating reform package and sets out further detail on how this will be delivered in response to stakeholder feedback.
Beer Duty
Duty rates of all alcoholic products produced in, or imported into, the UK will increase in line with RPI. Draught Relief will increase from 5 per cent to 9.2 per cent for beer and cider draught products and from 20 per cent to 23 per cent for wine, spirits based and other fermented draught products. These changes will take effect from 1 August 2023.
HMRC will also take forward plans to harmonise the approval, return and payment processes for domestic producers of alcoholic products. These changes are scheduled to take effect from late 2024 with the introduction of the new digital system.
Pavement Licenses
The Government's long-term strategy for the hospitality sector includes an extension to pavement licences, making it easier and cheaper for pubs, restaurants and cafes to make outdoor dining a reality. This will be implemented through the Levelling Up and Regeneration Bill. Additionally, the £150 million Community Ownership Fund allows community groups to buy assets so that they can continue to serve their local area. I am aware that rural pubs were among the local assets allocated funding in the scheme's first round, giving them a new lease of life for generations to come.
(May 2023)
