'We need help for small businesses, not punishment'

ByJosh TranterLiam BerryReporting fromin Bilston and Oprah FlashWest Midlands

"We need more help for small businesses instead of punishing them," said butcher Kevin Evans, in response to the government's new tax and spending plans.

In the Budget, set out by Chancellor John Healey on Wednesday, a number of measures were announced, including a one-off £100 payment for up to 20 million households in council tax bands A-D in England.

However, for those living and working in Bilston, Wolverhampton, not enough is being done to tackle the rising cost of living.

"The electricity is a killer, it's a big one, it's mega money. It's just out of control now," added Kevin Evans, a butcher and business owner.

"Six sausages would have cost you £1.50 last year, but it's around £2.50 now."

The Budget also included a 3.9% rise in the legal minimum wage from April, as well as a new flat-rate state pension increase of £488 a year, equivalent to 3.9%, under the triple lock policy. The old basic state pension will rise by £374.40.

Evans told BBC Radio WM the measures would make things harder for his business, not easier.

He added: "I would love to take another person on but I can't afford to because National Insurance and the minimum wage keep going up. I might as well just do the hours myself.

"You have less time at home. I don't get a day off now. It's not feasible, it comes out of my pocket which is already being emptied.

"It doesn't benefit you to be a businessman in this country anymore."

The sentiment was echoed by plasterer Glen Gandy, who said he also could not afford to expand his workforce or absorb the rising cost of materials.

The father-of-two said: "There is nothing in the new Budget that will help my business.

"Minimum wage up by 3.9% is good for kids, but you're going to employ someone with more experience if you have to pay them extra anyway, so it will push people out of work.

"We haven't put our wages up for two and a half years to absorb the costs, but there is nothing you can do about the materials.

"I pay around £350 a week on fuel just going around Wolverhampton. It costs us a fortune."

Lutfu Efe, who owns a chip shop, said he now pays nearly £800 a month for electricity and £600 a month for gas.

"This is why we are struggling. Many years ago it was around £300, but it has sky-rocketed," he said.

"It's not just me, everyone is in the same boat. Everything has gone up. We have two options: the government helps us or we have to close down.

"There is nothing in this Budget to help me."

For households across England, Scotland and Wales, standing charges, fixed daily fees customers pay regardless of usage, will be removed from gas bills, while the VAT cut on electricity bills has been extended until July.

Import taxes are to be removed on more than 100 food products, including gherkins and marmalade, as well as kerosene and fertilisers.

For mum-of-six Gwyneth Totney, the one-off £100 payment will "help but not much, it will cover about two weeks of gas and electric".

She added: "My weekly shop has gone from about £100 to about £130 a week.

"I've started going to the butcher's for my meat now as it's cheaper than the supermarket.

"We're working more to get more money but we have less time. We still have our pizza night and cinema night at home, but it's way too expensive to take all the kids to the cinema."

Reacting to the Budget, she said: "It feels like they are trying to bring the cost of living down, but they are not actually doing it."