6. What steps is the Welsh Government taking to provide support to businesses in Mid and West Wales as the cost-of-living crisis intensifies? OQ58880

Thank you. The levers to tackle cost increases for businesses, interest rates for borrowing, taxation of windfall profits and regulation of the market lie squarely with the UK Government. Our priority is to support businesses to decarbonise and save, and we look for opportunities to help them to do so.

Thank you very much. As we all know, small businesses are the backbone of our rural economy. However, the cost-of-living crisis has been a significant blow to them, with a recent report by the Federation of Small Businesses noting that 63 per cent of small businesses have seen energy costs increasing over the past year—two out of every five have seen their costs more than doubling.

Now, Mid and West Wales has a particularly high number of off-grid businesses that are dependent on LPG or oil for heating, and are therefore vulnerable to price variance in the market. For example, Caws Teifi—a notable cheese producer in Ceredigion—has experienced LPG prices increasing from 40p per litre to 80p per litre, and the total costs for energy on an annual basis have increased from £20,000 to £40,000. So, whilst rural businesses face these huge increases, the Westminster Government has only earmarked a pitiful sum of £150 to support off-grid businesses. So, as small businesses face an uncertain future, what support can the Welsh Government provide to assist off-grid businesses this winter?

There is particular support available through Business Wales, and some of the energy efficiency advisors look at what might be possible for those businesses, because it will vary from one business to another. I recognise the point the Member makes about off-grid businesses and their energy costs as opposed to those businesses seeing energy cost increases who are on grid as well.

It also reinforces, though, the challenges in the energy relief scheme. As I said earlier, it's a scheme that hasn't had legislation passed, that isn't seeing discounts being passed directly onto businesses in the here and now as we face a winter, and the point that when the review is done, it will make a material difference for those businesses in terms of planning for the future. If the scheme doesn't have not just a longer term base to provide the certainty for businesses, then some of those businesses may choose to make permanent choices about their business. So, when that relief scheme comes, it will be an important point for businesses right across the UK, not just for those that are within the definition of what is an energy-intensive business. Part of my concern is whether those off-grid businesses will be part of the consideration for that. The points that we make, and indeed, in my recent appearance at the Economy, Trade, and Rural Affairs Committee, I committed to sharing the evidence that we've provided to the BEIS consultation on the energy relief scheme, which will be directly relevant to a range of these businesses. I'll make sure that that is available, and it will become public once it's provided to the committee.

Minister, I was alarmed to read that ONS statistics show that the average price of a pint of beer has gone up 9 per cent compared to last year, and more than 50 pubs a month are now closing across the UK, compared to around 30 pubs a month last year. Pubs are the heartbeat of many communities in Brecon and Radnorshire, and they play an important social role for many people. So, I'd like to ask the Minister: what is the Welsh Government doing to support our pubs through a difficult winter and beyond?

Well, we do certainly recognise that pubs are an important part of community life, not just as businesses employing people, but giving places a sense of place as well. And I've recognised again the way that pubs have been highlighted today and the brewing businesses have come up on more than one occasion in this set of questions: the challenges of raw material increases, the challenges of energy increasing in cost as well and what that then means for pubs that are then facing their own challenges in terms of getting the right number of staff and, indeed, their own costs going up. So, I recognise there's a challenge. The difficulty then comes, beyond the support that we have provided through business rates, about what other support we can practically provide in a budget that has little room for manoeuvre. You'll see in the draft budget there isn't a spare amount of cash that the finance Minister has held back to do so. And it's also on the back of today's inflation figures showing a modest fall from 11.1 per cent to 10.7 per cent, but as I've said, the headline rate for food and drink that directly affects how pubs can do business has gone up 16.5 per cent. So, I recognise there is a wide range of challenges, and it's the part of the conversation we'll continue to have, not just with the sector but with the UK Government to understand what we can do and what resources will be available to try to support pubs as businesses and important hubs within communities.