The Chancellor will update the Commons on the latest economic situation on March 23 when he delivers the Spring Statement. While the autumn Budget is usually used to make big spending commitments from the Treasury, the Spring Statement gives Mr Sunak the opportunity to announce small changes the Government is considering making.
Increasing numbers of Tory MPs are urging the Chancellor to use the moment to announce plans to help households struggling with the skyrocketing price of energy.
Rampant inflation, price surges in energy bills and an increase in taxes are all contributing to a cost of living crisis.
Last month Mr Sunak unveiled a £9billion package to help take the “sting” out of £700 increases in bills from April.
Most households will receive a £350 rebate to help cover the cost of the sharp rise.
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But energy bills are set to continue to surge in the coming months and could even hit £3,000 a year due to the fallout of war in Ukraine.
Sanctions imposed on Moscow as punishment for Putin’s invasion have seen a rise in the price of wholesale gas – the cost paid by energy companies that determines the cost to households.
Emma Pinchbeck, chief executive of Energy UK, told BBC Radio 4’s Today programme yesterday: “It’s a really worrying time for both customers and industry, and we’ve been saying since the autumn that we expect bills to go up again in October.
“I think, with what we’re seeing in Ukraine and in the oil and gas markets, we’re now expecting those to go up further.
“We’ve seen public figures quoting bills at around £3,000 in October.
“We know they’ll be around £2,000 from April when the price cap goes up.”
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Pushing for action from the Chancellor in the face of fears of further cost rises, Conservative MP Robert Halfon said: “I very much hope the Government take action in the forthcoming spending statement.”
“This is going to affect all of us in terms of cost of living,” he added.
“International energy prices are rocketing.
“This is going to affect us all.”
Former cabinet minister John Redwood has also warned “Russia is waging economic war against us as well as violent war against Ukraine”.
He said suggested the Government help Britons struggling with the cost of living by scrapping the planned 1.25 percentage points increase in National Insurance.
He said: “Why not use all the extra revenue from soaring oil prices to remove the National Insurance increase?
“We are all having to pay much more tax on fuel as the prices rise, with the government pocketing more than half the pump price.”