“It was well publicised that the chancellor would raise taxes – and she’s definitely stuck to her promises.”

The assessment of David Chismon, partner at Saffery, following new measures announced in the budget this Wednesday.

Companies are now facing a 1.2 per cent hike in national insurance contributions (NICs) and 6.7 per cent rise in the national living wage – though fortunately corporation tax has been capped at 25 per cent.

And small businesses will need to start coughing up NICs sooner, with the earnings threshold lowered from £9,100 to just £5,000.

National accountants MHA estimate that the average cost of employing an individual on minimum wage will ultimately rise 10 per cent as a result of the budget.

It all comes in an effort to get the economy moving again. But might the new measures instead stifle growth and force some struggling companies to fold?

We’ve pooled comments from Dorset’s legal, accounting and manufacturing sectors to see how the region’s businesses are reacting to the news.

To add your budget reactions, please get in touch at [email protected]

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“Rising wages will impact recruitment and future business growth” – Ian Girling, Dorset Chamber

“Many businesses in Dorset will have concerns about the budget.

“There’s some comfort for small businesses with employment allowance increases for national insurance, but rises in employer NICs and the minimum wage mean that employment costs are significantly increasing.

“This comes at a time when wages have been pushed up by significant recruitment challenges for businesses.

“It’s highly likely this will impact on recruitment, which will have a knock-on effect in terms of future business growth.

“It’s encouraging to see a focus on affordable housing, as this is a barrier to growth for businesses, but I’m not sure that it’s enough.

“Economic growth projections over the next three years are very low, which hardly inspires confidence among businesses and consumers.

“Dorset Chamber will continue to support businesses and make the county’s voice heard in the corridors of power.”

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“Easy to conclude the chancellor has targeted wealth” – David Chismon, Saffery (Bournemouth)

“Whether everyone can agree that the tax changes will not affect ‘working people’ will be a topic of debate in the pub – while probably drinking a draught beer rather than from a bottle!

“With the chancellor deciding to raise the capital gains tax (CGT) rates to 24 per cent (or 18 per cent for some taxpayers), it will be a relief to people who undertook sales before budget day that they secured the 20 per cent CGT rate.

“There had been some concern that the chancellor may scrap business asset disposal relief (BADR), which provides a 10 per cent tax rate on sales of qualifying businesses or company shares on £1 million of gains.

“While this hasn’t been abolished, the CGT rates on the £1 million qualifying gain will increase to 14 per cent in 2025–26 and 18 per cent in 2026–27.

“There have been significant and impactful changes to businesses and farmers who are planning to pass on valuable businesses and farmland without paying inheritance tax (IHT).

“From April 2027, only the first £1 million of qualifying assets will be free of IHT, with any value above this qualifying for a 50 per cent reduction.

“This will undoubtedly mean people will need to review their estate planning.

“Combined with a change to bring unspent pensions into the IHT net, it’s easy to conclude that there has been a targeting of wealth by the chancellor.

“The chancellor confirmed a rate increase on employers’ NICs to 15 per cent, but also a reduction in the starting level upon which employer’s NICs will be paid.

“Her speech said that this will raise around £25 billion per year from 2025–26.”

“Rachel Reeves said taxes would rise, and that it would be difficult.

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“The chancellor’s first budget has disaster written all over it” – Simon Boyd, REIDsteel (Christchurch)

“This is not a budget for growth, it’s a budget for decline, and the chancellor is deluded if she thinks otherwise.

“SMEs are the lifeblood of our economy.

“A vast number of these businesses will be facing significant increases, not least through the double whammy of increased employer NICs and a cut in the threshold for payments.

“Many SMEs will be wondering where they’re going to find the extra money from to pay such additional taxes.

“Coupled with damaging measures in the employment rights bill, it’s nothing less than a tax on jobs.

“The Office for Budget Responsibility’s anaemic growth forecasts are an embarrassing admission of defeat.

“If the government is serious about economic growth, it needs to support this country’s 5.5 million SMEs and the private sector, not add to their regulatory burden and tax them further.

“Without a thriving private sector, there is no public sector.

“The government would do well to remember that business is a force for good, not a cash cow to be milked at its convenience.”

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“Rising business costs may have unintended consequences” – Neil Andrews, Coles Miller Solicitors (Bournemouth)

“So, we expected a reset – and businesses are being forced to shoulder the burden.

“But this overlooks their essential role as engines of job creation and economic growth.

“Businesses can (and may) relocate, restructure or shut down due to rising costs.

“They’ll need to keep their advisers close as they react to changes in an increasingly regulated environment.

“Changes to employer’s national insurance and capital gains tax won’t be felt immediately by the average person – but these rising business costs will eventually be passed on to consumers.

“Ultimately, the law of unintended consequences may well apply to this budget.

“Furthermore, freezing the inheritance tax (IHT) threshold for a further two years to 2030 will bring more bereaved families into the IHT net.

“They’ll need more help with IHT planning.”

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“SMEs are our economic backbone – but some could fail” – Nigel Smith, Ellis Jones Solicitors (Bournemouth)

“If this was meant to be a no-tax-increase budget, I’d hate to see one when the chancellor was really trying.

“SMEs are the backbone of economy, representing 99 per cent of the UK’s business population and accounting for 61 per cent of the country’s employment.

“The increase in employer NICs will have an inevitable impact on many of the 27 million working people in the private sector.

“It will have unintended consequences, including pressure on wages, increased prices, and in the worst-case scenario, it could lead some businesses to fail.”