12 October 2022
Support for Pubs

Pubs up and down the country play a vital role not only in the economy but in our local areas, supporting a sense of community and and pride of place. After nearly two years of difficulties as a result of the pandemic, I am glad that pubs have returned to business as usual. 

You will be reassured to know that 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. 

This will see the Government set a Supported Wholesale Price which is a discounted price per unit of gas and electricity. This price is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter.

It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will be applied until 31 March 2023, running for an initial 6 month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

The Government will publish a review into the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs.

Further the Government is freezing alcohol duty for beer, cider, wine and spirits next year and will continue with important reforms which modernise our alcohol duty system. This will save 3p off a pint of beer and 12p on a glass of wine. An 18-month transitional measure for wine duty will also be introduced. Draught relief to cover smaller kegs of 20 litres and above to help smaller breweries will also be extended.

The Government is committed to supporting our pubs and I welcome the fact that 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 continue to make outdoor dining a reality with seating, tables and street stalls to serve food and drinks. This will be implemented through the Levelling Up and Regeneration Bill. 

Funding is also helping make it easier for community groups to protect and take over local assets, like pubs, which are at risk of loss without community intervention. 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.