A business leader has said that small businesses will 'need to adapt' following the Chancellor’s budget.

Rachel Reeves MP announced in Wednesday’s Budget that employers’ national insurance contributions will rise by 1.2 percentage points to 15%, and the threshold for paying them will be cut almost in half. As well as this, it was announced that there would be a reduction in Business Rates Relief. 

It saw Labour attempt to set out a path for improving public services – especially schools and the NHS – with greater spending over the next five years. 

The Dorchester Chamber for Business said that the Chancellor made some ‘challenging choice’s in the budget, and they will need to decide their next steps.

Steve Bulley, Dorchester Chamber president said: "While it’s good to see that the smallest businesses employing minimum wage workers are exempt from National Insurance, this measure barely mitigates the impact of the £25bn tax increase on businesses.

"Small businesses are known for their resilience, but they’ll need assistance to adapt their strategies to handle the overall higher tax burden. It is encouraging that the expected rises in Capital Gains Tax and Business Asset Disposal Relief were less significant than anticipated.

"Our members see the reduction in Business Rate Relief will nearly double costs for many independent high street retailers starting in April, so swift action is necessary to mitigate this.

“As the voice for business in the Dorset Council area, we are eager to continue to collaborate with the local government on their Small Business Plans to help small businesses manage the rising costs.”

Dorchester Chamber for business was founded in 1819 and aims to represent the businesses in the county town by focusing on business help and growth.