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 pride. After nearly two years of difficulties as a result of the pandemic, 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 December 2021, as well as to deemed, variable and flexible tariffs and contracts. It will be applied until 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
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. 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
The Government is committed to supporting our pubs. Its 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 with seating, tables and street stalls to serve food and drinks. This will be implemented through the Levelling Up and Regeneration Bill.
Additional funding also aims to support community groups to protect and take over local assets, like pubs, which are at risk 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.
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.
Finally, 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.