Dorset businesses feel ‘relief’ after budget as Chamber says tax hit 'could've been worse'
Dorset's Chamber of Commerce says yesterday's budget is ‘better than feared’ but major funding has passed the county by once again
Dorset’s Chamber of Commerce has told us that the immediate response from local businesses following the budget was “relief”, arguing it “could have been much worse” for firms already grappling with rising costs.
CEO Ian Girling said: “It appears as if the chancellor has listened and taken on board concerns that businesses cannot handle more taxation.”
The local Chamber of Commerce joined its British counterparts in lobbying heavily on this point.
Under the measures, more than 750,000 retail, hospitality and leisure properties will benefit from lower tax rates.
It’s a move funded by higher rates on large commercial sites valued at £500,000 or more, including warehouses used by major online retailers.
Mr Girling said the policy clearly produced “winners and losers”, but welcomed targeted support for “scale-up” companies through higher investment limits for the Enterprise Investment Scheme and Venture Capital Trusts.
However, he voiced frustration that Dorset had once again been bypassed for major funding, after £13bn for skills, business support and infrastructure was allocated exclusively to mayoral combined authorities.
“There is disappointment that our area has been overlooked again,” he said.
The chancellor also confirmed a series of minimum wage increases: an 8.5% rise for 18-to-20-year-olds to £10.85 an hour; a 4.1% rise in the national living wage for over 21s to £12.71 and a 6% uplift to £8 for 16 and 17-year-olds and apprentices.
Ian Girling said the rise was “expected from a Labour government” and welcomed it, saying “it’s paramount people are paid fairly for days work” - especially amidst a cost-of-living crisis
But experts warn the increases could worsen youth unemployment.
Some argue the rise in younger age-band rates may “accelerate the loss of jobs among young people” at a time when the number of young people not in education, employment or training has climbed to nearly one million.
In response, the chancellor announced £820m over three years to fund a renewed “youth guarantee”, offering every 18-to-21-year-old access to an apprenticeship, training, education or job-search support.
Elsewhere, the budget promised to “stop online firms undercutting high street businesses” by applying customs duties to items of any value.
It’s a measure intended to bolster local retailers facing competition from global e-commerce platforms.
Mr Girling concluded that Dorset businesses would now be watching closely for detail. “There’s more to understand but this is better than feared,” he said.