'Act now' call on bills crisis for homes and businesses

Gas and electric bills are set to rise by 50 per cent in a fortnight – and average pump prices today hit yet another record.

Chancellor Rishi Sunak has been urged to use Wednesday's Spring Statement to help those struggling to make ends meet.

It comes as Bushbury and Low Hill in Wolverhampton were identified as the worst affected areas in England for fuel poverty, deemed to be where more than 10 per cent of income goes on energy bills.

Nine in 10 homes in those areas suffer from fuel poverty, more than double the national average.

People are 25 times more likely to be in fuel poverty in parts of the Black Country compared to the least affected neighbourhoods, which are mostly in the south east.

There is speculation that Mr Sunak may reduce duty on fuel at the pumps in order to ease the burden. New figures reveal average prices in our region are now approaching 170p for petrol and 180p for diesel. Prices have risen by almost 20p for petrol and 25p for diesel in the last month and there are warnings we will soon by paying £2 a litre.

Heavy industry is also suffering from increased fuel costs, with West Bromwich-based Confederation of British Metalforming lobbying for financial help.

Ben McIvor, of Midlands-based Forged Solutions Group, today said: “The single biggest challenge for our business is energy. You simply could not have predicted what we are seeing at the moment, with meteoritic price rises.”

Finding way to reduce energy costs vital - MP

Finding ways of reducing energy costs will go a long way to helping struggling households, Dudley North’s MP has said.

Conservative MP Marco Longhi says he has been approached himself by people who are struggling to make ends meet.

Mr Longhi said: “My inbox is getting busier with people saying ‘I’m struggling, how can you help?’.

“It puts pressure on me and the Government to do something.

"The thing that is most worrying to people at the moment is the cost of living,” said Mr Longhi.

“The main thing impacting it is wholesale energy prices across the world.

“What I would like to see is to bring some stability to energy prices.

“I would like us to double our efforts in sourcing oil and gas from the North Sea and elsewhere.

“Everything is underpinned by energy costs and if you can find ways of reducing energy costs that will be a very big help.”

Businesses seek help over rising prices and surging energy costs

The chief executive of the Black Country Chamber of Commerce hopes the Chancellor of the Exchequer will announce action to fortify the economy in the Spring Statement.

Corin Crane says the cumulative effect of rising raw material costs, soaring energy bills and other overheads is causing many Black Country firms to take cost-reduction measures.

“This is weighing down on their ability to invest, recruit and grow,” he added.

Mr Crane said the Spring Statement was taking place against a backdrop of soaring uncertainty surrounding both the UK and global economy.

“Business confidence is extremely low. Coming so soon after Covid, businesses are faced with increasing costs in raw materials, production and energy costs and are experiencing disruption with mainland deliveries and international shipping.

“The Government must now fortify our economy for what will likely be some gruelling weeks and months ahead. It must prove it is serious about doing whatever it takes to support companies through these domestic and global economic shocks.”

Smethwick-based A and M EDM is urging the Chancellor to delay the planned rise in national insurance contributions and provide improved business rate relief.

Company spokesman Phil Calcutt said: “Things are getting very difficult for businesses with energy prices going through the roof.

“We feel in the current circumstances where we are coming out of Covid and what is happening in Ukraine that they need to make support for manufacturing more of a priority.

A new survey from Lloyds Bank has found that 36 per cent of businesses across the West Midlands are calling for the Chancellor to provide direct help to cope with rising prices and energy costs.

Surging prices are causing 30 per cent of firms to worry about increasing costs for their goods and services and one in ten (11 per cent) said they would consider scaling back operations

Business leaders are also looking for VAT reductions (31 per cent) and investment in skills and training (15 per cent) in the Spring Statement.

Dave Atkinson, regional director for the West Midlands at Lloyds Bank, said: “Rising prices are causing multiple challenges for businesses in the West Midlands and the pressure from inflation shows no sign of abating in the near-term.

“We will continue to play our part during this challenging time but firms want support from the Chancellor now to help with the cost of running their operations so they can continue to drive the region’s economic recovery.”

Specialists from national audit, tax, advisory and risk firm Crowe are teaming up with the Black Country Chamber of Commerce to provide live commentary on Chancellor Rishi Sunak’s Spring Statement at he firm’s Midlands office in Oldbury

Johnathan Dudley, managing partner of Crowe in the Midlands and Crowe partner Rob Gunn will be joined by senior officers from the chamber who will help analyse the key outcomes and how they may impact business leaders and their companies.

We are just asking for similar support to other sectors, says packaging boss

The boss of one of the UK’s large packaging specialists is urging the Government to step in to help with spiralling energy and materials costs.

Billy Hutchinson, managing director of Burntwood-based Lesters, believes his sector is often overlooked when it comes to support, yet finds itself faced with a potential 30 per cent increase in paper prices in the next month. A number of European mills have already shut their doors, and this is going to magnify the focus on those that are left, causing inflation in charges and the possibility of instability of supply.

It comes after the Burntwood company has boosted its sales by 120 per cent and taken on another 15 staff to cope with the rise in demand. “There’s a perfect storm about to hit and there’s no way our sector can avoid it,” explained Mr Hutchinson.

“The packaging sector is taken for granted. People just see boxes, but it’s how everything is transported and crucial to everyday life.”

Mr Hutchinson added: “Our fuel bills have gone up from £3,000 to £5,000 per week, material prices could hit a 30 per cent increase and our fixed term electricity contract is up at the end of the year.

“We’re not asking for something special, just to receive the same Government support which other sectors receive, such as aerospace and automotive. After all, without our boxes many industries would fail to operate.”