Dorset Chamber is concerned about the effect the increase in national insurance will have on local businesses.

Chief Executive Ian Girling said: “This is a difficult time for businesses to be faced with the prospect of further costs.

“We are seeing inflation rise and costs increase for employees, materials and wages so the rise in National Insurance is an additional outlay that is unlikely to be welcomed by employers.

“The timing of the announcement is particularly sensitive as we reach a critical point in our emergence from the pandemic when some businesses will have built up a significant debt burden and others face the end of government support through the furlough scheme at the end of this month.”