Dorset Chamber chief executive Ian Girling said: “The new chancellor’s statement represented a screeching handbrake turn on the original, poorly thought out mini-budget which has badly backfired.

“Some businesses in Dorset will welcome the outbreak of common-sense, although the reinstatement of the Corporation Tax increase is a major concern, and some may be disappointed by the u-turns on alcohol duty and dividend rates.

“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.

“More generally, although this statement may have helped provide a modicum of confidence, serious question marks remain about the future of this government and its credibility.

“The spectre of cuts and potential tax hikes looms large, with implications for support for business. There may be more details in the chancellor’s fiscal statement at the end of October although conceivably that could easily by superseded by rapidly changing events.”