PHILIP Hammond has been accused of delivering a “kick in the teeth” to the self-employed, even though other Budget measures have been welcomed by businesses.

The chancellor announced measures to relieve the impact of business rates and pledged money for “disruptive” technologies and 5G mobile.

But he was criticised for his decision to raise National Insurance (NI) contributions for the self-employed. His party’s general election manifesto in 2015 said the Conservatives would not raise the rate of NI.

Nigel Smith, managing partner at Ellis Jones Solicitors in Bournemouth, said: “The National Insurance increase for the self-employed is a real kick in the teeth for owner-managed businesses. It sends out the worst possible signal at a time when we’re looking to this vital sector to help drive the economy forward.”

Julian Smith, tax partner at Poole chartered accountants and business advisers PKF Francis Clark, said: “For a chancellor dubbed ‘Spreadsheet Phil’ by the popular press, the Budget packed quite a punch.

“I welcome the measures to ease the planned hike in business rates but I’m disappointed to see an increase in the main rate of Class 4 National Insurance contributions for the self-employed, a sector often regarded as the ‘engine room’ of the economy. The words ‘stealth tax’ come to mind.”

Neil Andrews, partner and head of the commercial department at Coles Miller Solicitors in Poole, said: “Against a background of high levels of government borrowing, the chancellor is raising taxes against soft targets – such as the self employed and high street businesses – with increases in NIC and business rates.”

Ian Girling, chief executive of Dorset Chamber of Commerce and Industry, welcomed the news that official growth forecasts have been upgraded from 1.4 per cent to two per cent this year.

“This further demonstrates that there hasn’t been a significant economic downturn following the EU referendum. Dorset businesses have remained resilient although we have detected some concerns amongst about the impact of inflation on the cost of materials and price rise pressures,” he said.

“Support to help mitigate the impact of the forthcoming business rates revaluation is welcome as is a consultation into the process of revaluation going forward.”

He added: “The chancellor was right to get to grips with the age old issue of productivity and Dorset must make sure it gets its fair share of funding in such areas as disruptive technology, research, 5G and full-fibre broadband networks.”

Paul Tansey, managing director of Poole-based B2B marketing agency Intergage, said: “We strongly welcome the extra funding for R&D, fibre broadband and 5G mobile technology.

“It’s also good to see that the chancellor plans to reduce urban congestion and tackle pinch points on the major arterial roads.”

Ian Harlock-Smith, tax director with Saffery Champness in Bournemouth, said: “Increasing productivity still remains at the heart of the majority of the investment provisions announced at what is the last spring Budget. This is recognised as a long term goal, however, and the investment still needs to be funded in the short term by those working today.

“The burden for this will be met in part by aligning the perceived gap between the self-employed, via an increase in national insurance contributions, and those operating through a company by a reduction in the dividend allowance.”

Your thoughts on the key points of the Budget

THE beauty of being the man in charge of presenting the budget is that most of the time no one knows what you're talking about.

When Chancellor Philip Hammond talks about billion pound budgets the need for "robust growth" and an "industrial strategy" it's safe to say that for those of us who don't have a degree in economics it's sometimes hard to follow where the money is going and who is benefitting.

In yesterday's budget the key points included:

  • Increase in national insurance for the self-employed
  • Tax free dividend allowance drops from £5,000 to £2,000 from April 2018
  • Measures for business rates amount to a £435m cut, including a £1,000 cut for 90 per cent of pubs
  • £2bn for social care, and £100m for new triage programmes at English hospitals next winter
  • Funding for a further 110 new free schools on top of the existing 500, including new specialist maths schools

    The Government's aim was to present a positive outlook in times of uncertainly following the EU referendum last year - with promises of higher growth and less borrowing.

But what do people - not politicians - actually think about the current state of the UK economy and how it is affecting them.

Thirty-year-old Esther Kneen is a mum who lives in Poole. As a parent her concerns are focused primarily on the education system and where the money is going.

Speaking to the Echo she said: "I’m not impressed with the education budget. The money is being spent on new free schools and grammar schools but I think the money should be spent on improving the current system.

"For me the budget should be focused on helping out the youth and sorting out affordable housing for the elderly so they can be supported later in life.”

Meanwhile retiree Andy Cake, 66, who also lives in Poole, said he was pretty happy about how things were going for the economy.

“I’m newly retired and I think the economy is okay generally," added Mr Clarke.

"The interest rates on mine and my wife's savings could be better, but we are pretty happy with how things are.”

However a local woman who works for the NHS, who asked to remain anonymous, said she didn't feel the economy was doing very well at all.

"I really don’t think the Government has the right priorities when it comes to spending," she added.

And while many political commentators were focussed on the effects of Brexit on the economy only one person who the Echo spoke to about the budget mentioned it.

And Mark Kinder, aged 49 from Weymouth, said it was too early to tell how the decision would affect the UK economy and that "we won't know what’s going to happen until we actually leave.”