Spring budget: Mixed reaction from Dorset business leaders

Jeremy Hunt today announced another 2p cut to National Insurance contributions, with the rate for workers earning between £12,570 and £50,270 being reduced from 10 per cent to eight per cent. 

The change could save the average worker £450 a year, adding up to £900 when combined with last year’s move. 

Steve Witt, co-founder of Bournemouth-based Not Just Travel, said: “Any move that helps put more money in the pocket of the consumer is a good thing.  

“This will help build confidence and create more disposable income. Given holidays are always in the top three desirable products and spend, it is likely to help boost the travel industry.  

Steve Witt, co-founder of Not Just Travel

“At Not Just Travel we are experiencing record-breaking sales, with January 2024 biggest ever month for sales in our 22-year history. 

“Revenue and holiday bookings at the start of this year are up over 41 and 32 per cent respectively compared to January 2023.  

“Any move the chancellor can make to continue to boost consumer confidence and spending is a positive step for the travel industry.” 

A freeze on alcohol duty was extended until February 2025. Mr Hunt, who announced a freeze in the autumn statement until August this year, said it would have been due to rise by three per cent without the extension. 

Luke Davis, chief executive of Rockwater in Branksome, welcomed the freeze, saying it will be “potentially crucial” to the hospitality sector’s survival. 

He said: “It’s been sad to see so many venues close as a result of rising costs, with the number of licensed premises falling below 100,000 for the first time last year.  

Luke Davis, chief executive of Rockwater

“It’s imperative that hospitality businesses are viable today, tomorrow and for years to come so our communities can come together. 

“I’m pleased to see that the government has recognised the industry’s importance not only to the identity and culture of our country, but also in driving the economy and employment, which hospitality plays a key role. 

“It takes an army of determined and skilled people to deliver the hospitality experience we cherish, and our industry needs the government’s backing to do so.” 

However, Wimborne-based Coles Miller Solicitors managing partner Neil Andrews said: “We’re concerned that the public sector reforms and investment will do little for legal services. 

“As solicitors we see worsening delays at the Land Registry and the probate registry (part of HM Courts & Tribunals Service).  

“These delays have a significant impact on families at what are inevitably very stressful times.” 

Ian Girling, chief executive of Dorset Chamber, said: “The Chancellor’s focus was clearly on fiscal responsibility in the budget.

“Certainly, some measures will be welcomed by business, including the continued freeze on fuel duty, extension of full expensing for leased assets, tax relief for creative industries and extension of the recovery loan scheme.

He added: “Disappointingly, again there appeared to be little for Dorset when it came to funding for levelling up and regeneration although there may be more in the detail of the budget."

Nigel Smith, managing partner at Ellis Jones Solicitors, said: “It was disappointing that the Chancellor didn’t have more meaningful measures to announce, given that a general election is around the corner.

“With no headline grabbing policy at the end, it felt as if the Chancellor had a hat without a rabbit, although we will wait to see exactly what is in the small print.”

Tony Williams, of Wessex Entrepreneurs, said: "Most of the Chancellor’s speech was well trailed – a strategy designed to spike the guns of the opposition.

"For Dorset the postponement of the rise in alcohol and fuel duties will help the hospitality industry as will the higher VAT threshold. Hopes for a special reduced VAT rate for the industry were dashed.

He added: "Public borrowing remains high, although rising less quickly than previously predicted – a substantial burden on all businesses.

"Predictions on inflation were hopeful, although the Government’s ability to control it have yet to be proved to the average business.

"Expectations that the economy will grow are but predictions. Only time will tell if they are right.

"Not much of significance in the Budget for Dorset. The north seems to be getting a lot, but nothing ground breaking here."