ONE of West Yorkshire’s most senior civil servants has said a rise in energy bills could have a knock-on affect on the region’s economy.

Speaking at a full West Yorkshire Combined Authority meeting, the organisation’s corporate director for economic services Brian Archer warned a price cap rise was likely to impact on the spending power of people in the region.

Mayor of West Yorkshire Tracy Brabin said that when combined with many in the region being paid below the living wage, this would likely have “incredibly challenging” impacts on many families.

The comments came at the same time as energy regulator Ofgem announced it would be raising its energy price cap by 54 per cent – around £693 a year for the average home – due to spiralling wholesale energy prices.

Mr Archer told the meeting: “The biggest challenge at the moment is the energy price cap which is likely to increase consumer bills.

“The consequences of that are going to be an increase in inflation which is already at 5.5 per cent. That will impact on the spending power of consumers.

“Business energy costs are increasing. UK firms are paying more than our European competitors. Energy firms are also not able to invest in new infrastructure.”

Ofgem’s decision has led to inflation – the annual increase in the costs of goods and services – rising to more than seven per cent. This has led the Bank of England to increase interest rates to 0.5 per cent in an attempt to halt the rise – but this is likely to have a knock-on effect for individuals with debts.

Mayor Tracy Brabin added: “With the 170,000 people who are in work and being paid below the living wage, rising fuel costs and then the national insurance rise is going to be incredibly challenging for the people of West Yorkshire.

“We need to try and get more money into people’s pockets.”

Leader of Bradford Council Susan Hinchcliffe (Lab) added: “It’s a very tricky time for the nation and for our economy.

“People in low-paid employment need to access higher-paid employment.

“There is too much unstable employment out there with little opportunity to progress – it’s something we need to work with employers on and crack at.”