Thank you for contacting me about the recovery of the hospitality sector.
Like you, I am proud that the UK has one of the most dynamic and diverse hospitality sectors globally. But for a sector that exists to bring people together, the impact of Covid-19 was always going to be considerable and that is why the Government introduced its first-ever Hospitality Strategy which enables the sector to build back better. I am a keen supporter of local Island pubs and Restaurants and am a keen supporter of Islander producers who supply these establishments.
The Strategy focussed on reopening, recovery and resilience with an additional £5 billion worth of grants. Ministers have been working with the Government-owned British Business Bank and its delivery partners to support access to finance, while working alongside the Hospitality Sector Council, comprising businesses, sector representatives and industry leaders, to oversee the strategy’s delivery.
Through the new Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic customers whose current gas and electricity prices have been significantly inflated in light of global energy prices. This will include all UK businesses and will be equivalent to the Energy Price Guarantee put in place for households.
In April 2023, the EBRS will be replaced by the Energy Bill Discount Scheme (EBDS) 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.
Moreover, small businesses will be shielded from most tax rises and will be protected from increases through the Small Profits Rate and Employment Allowance. This means only the largest ten per cent of companies will pay the top rate of Corporation Tax and 40 per cent of all businesses will be unaffected by the freeze in National Insurance thresholds.
There is also a £13.6 billion package of support. To protect businesses from rising inflation the multiplier will be frozen in 2023-24 while relief for 230,000 businesses in retail, hospitality and leisure sectors was also increased from 50 per cent to 75 per cent next year.
The Government has supported more than 5 million apprenticeship starts in over 650 high-quality standards, ensuring career goals can be achieved through an apprenticeship. Ministers are going further boosting funding to £2.7 billion by 2024-25, and rolling out and expanding T levels, Institutes of Technology, and skill boot camps – all backed by £3.8 billion. The Government is on the side of business and that is why its skills programmes have been designed with employers to meet the needs of business and industry.
From 1 April 2023, business rate bills in England will be 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.
Thank you again for taking the time to contact me.