Business, Political | Posted on November 27th, 2025 | return to news

Dorset Chamber responds to the budget

Chancellor Rachel Reeves unveiled the government’s new budget yesterday, and Dorset Chamber has some thoughts.

Chancellor Rachel Reeves revealed the details of the government’s latest budget on Wednesday, which contained a range of tax rises and increased welfare spending.

Dorset Chamber, which supports businesses across the county, has shared its assessment of the budget.

Dorset Chamber Chief Executive Ian Girling said: “Firstly, it’s just incredible that the OBR released the budget information before the Chancellor made her official statement.

“It will take time to fully digest the budget, but the immediate reaction is one of relief as it could have been much worse.

“It appears as if the Chancellor has listened and taken on board concerns that businesses cannot handle more taxation. The British Chambers of Commerce, to which Dorset Chamber is accredited, has been pushing hard on this.

“The minimum wage has gone up but this was to be expected from a Labour government, and against the cost-of-living crisis the country has been facing.

“It is very disappointing but unsurprising £13bn for skills, business support and infrastructure has entirely gone to mayoral combined authorities – meaning Dorset won’t benefit from any of this.

“The freeze on tax threshold will mean people at the limits are dragged over as their pay increases – ultimately pushing up employment costs.

“Electric vehicle tax won’t be welcomed in some quarters and the rise in dividend tax will be unpopular among some businesses. With the dividend tax rate increasing by 2p from April 2026, there will be a hit for owner-managed firms and shareholders.

“However, there is targeted support for ‘scale-up’ businesses: higher limits for Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs), which could make it easier for high-growth companies to raise capital.

“There will be permanently lowered business rates for 750,000 retail, hospitality and leisure businesses, paid for by higher rates on properties worth more than £500,000, used by ‘warehouse giants’. There will be £4.3bn of support for properties that receive a large increase in their bill.

“There are clearly winners and losers, and we look forward to seeing more details emerge.”