Businesses: Cost of Energy - 10th February 2026

11:43 Chris McDonald (Labour)

The hon. Gentleman is quite right to point out the impact of energy costs on small businesses. As we have seen, that has been largely driven over many years by the linkage between energy costs and gas prices, which is something that this Government are determined to deal with as we pile on renewable energy as part of our clean power mission. UK gas costs are competitive with Europe after policy costs are included, but of course we want to remove businesses from having to rely on the whims of the fossil fuel market and enable them to rely on low-cost, secure, home-grown energy.

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Chris McDonald (Labour)

Of course, it is central to the Government’s policy that businesses are incentivised to invest in renewable energy and electrification where that is possible, so that they can access the lower-cost electrical energy that is coming on stream as part of our 2030 clean power mission. The hon. Lady mentioned that the business was a manufacturing business, so it is possible that it could qualify for our British industrial competitiveness scheme, which we will bring forward in 2027. The results of the consultation on that scheme will be published shortly.

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Euan Stainbank (Labour)

To transition away from fossil fuels, we need zero emission vehicles on the road. Manufacturers such as Alexander Dennis should be leading that transition, although it currently operates with a gas-intensive production process. To stay competitive against imports, those manufacturers need greater support. The British industrial competitiveness scheme is hugely welcome as it will reduce industrial electricity costs, but will the Minister consider supporting a dual fuel discount that includes the cost of gas to support the automotive advanced manufacturing sector, including Alexander Dennis?

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Chris McDonald (Labour)

I am very concerned about gas-intensive industries, and the Government’s policy is intended to ensure that they are given the support to decarbonise by electrifying, where that is possible, whether that is through confidence in long-term energy prices owing to the delivery of our clean power mission or through support to invest in their business.

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11:45 Richard Quigley (Labour)

I know that the Department is working hard with the Department for Transport to decarbonise shipping, but the current system works against businesses. One of our ferry companies is having to pay £12 million up front for a shoreside connection and then wait for up to seven years. Will the Minister commit to reviewing this system to speed up electric shipping for places such as the Isle of Wight?

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Chris McDonald (Labour)

I am extremely grateful to my hon. Friend for engaging with me on this topic in advance of the recent changes to the emissions trading scheme to include maritime emissions. It is incredibly important that domestic maritime emissions are included, so as to incentivise the investment required to decarbonise. I am aware of the issue in the Isle of Wight. On one route, two vessels will be affected. I know that he has invited me to visit the Isle of Wight and meet the businesses concerned, and I am allowed to make the commitment from the Dispatch Box that I will do that.

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