º£½ÇÊÓÆµ

Oops.

Our website is temporarily unavailable in your location.

We are working hard to get it back online.

PRIVACY
Economic Development

Mini-Budget 'screeching handbrake' U-turn divides opinion among businesses

Some business leaders have welcomed the news, while others have spoken of concern about the future of the economy

Jeremy Hunt arrives in Downing Street in London after he was appointed Chancellor of the Exchequer.(Image: PA)

Jeremy Hunt's near-complete U-turn on the prime minister's economic plan has divided opinion among businesses in the South West.

The new chancellor has almost completely scrapped Liz Truss and Kwasi Kwarteng's mini-Budget - including the majority of tax cuts - and has even hinted at a new windfall tax. He is expected to reveal more details in a statement on October 31.

The changes to the plan have been described as a "screeching handbrake turn" by the chief executive of Dorset Chamber, who said the original proposal was "poorly thought out" and had "backfired".

"Some businesses in Dorset will welcome the outbreak of common-sense although the reinstatement of the Corporation Tax increase is a major concern while others may be disappointed by U-turns on alcohol duty and dividend rates," said Ian Girling.

"The renewed commitment to energy price caps for the consumer and businesses is welcome although there is now a very real sense of foreboding about prospects for support beyond April of next year."

Ian Girling, Dorset Chamber chief executive(Image: Dorset Chamber)

Mr Girling said the statement had provided a "modicum" of confidence - but there were still "very serious question marks" about the future of the government. “The spectre of cuts and potential tax hikes looms large, with implications for support for business," he added.

Jonathan Southgate, founder of Bristol-based broker Sterling Southgate, said the statement may have settled the markets but uncertainty remained for businesses.

"Just weeks ago we were plunged in to a financial quagmire only for the new number two to come in, knock on the head all but a few of the prime minister's policies, completely undermining Number 10's authority," he said. "This has to be the final nail in the coffin of 'Trussonomics'."