Business | Posted on October 29th, 2026 | return to news

Dorset’s Budget reactions for business and devolution

The Budget put forward by Chancellor John Healey, sparked a variety of local business and political reaction.

While families and homeowners may welcome the freeze on fuel duty, the zero-rating of VAT on domestic energy to July 2027, the eventual removal of gas standing charges and a £100 Household Energy Payment for households in council tax bands A to D from January 2027, business leaders were more guarded in their response. Meanwhile, politicians welcomed the prospect of local devolution.

The agenda for Wessex devolution

In a joint statement, Councillor Millie Earl, Leader of Bournemouth, Christchurch and Poole Council; Councillor Nick Ireland, Leader of Dorset Council; Councillor Bill Revans, Leader of Somerset Council; and Councillor Ian Thorn, Leader of Wiltshire Council, responded to the news:

“We warmly welcome the Chancellor’s commitment today to support devolution for Wessex in the Autumn Budget Statement. This is a significant vote of confidence in our region and recognition that decisions affecting local people are best made closer to the communities they serve.

“We have consistently made a strong case for devolution in Wessex because we believe local people, businesses and communities are best placed to shape the future of our region.

“For residents, it means greater local control over decisions affecting transport, housing, skills, regeneration and economic growth, enabling new, significant funding and investment to be directed towards the priorities that matter most to our communities.

Business leaders respond

Gareth Sherwood, president of Dorset Chamber, said: “The business rates changes should make a meaningful difference to qualifying smaller retailers, pubs and hospitality businesses. There are also opportunities for manufacturing, technology and other businesses able to access the investment and energy support being offered.

“Employment costs, however, remain unchanged and a significant disappointment. Many businesses had hoped to see the previous increase in employers’ National Insurance contributions reversed, which was unlikely, but would have helped.

“This Budget is a level of business as usual, with no major shocks, even the expected tax on banks was lower than expected; it therefore appears unlikely to be an inflationary budget which will be welcome. But one question I keep coming back to is whether the Budget makes it easier for an established business to grow, much of which will come from businesses employing more people, developing a new product or winning new contracts.

Taking a more critical tone, Simon Boyd, vice-president of Dorset Chamber and managing director of Christchurch-based REIDsteel, said: “There were some measures which may be of marginal benefit but the devil will be in the detail, as always, and any gains will need to be paid for by cuts, taxation or suffering elsewhere. Government money is taxpayers’ money, so it is the taxpayer who will ultimately foot the bill.

“It was incredibly disappointing, yet unsurprising, to see the Chancellor recommit to the madness of net zero by 2050 which will only see our economy and industry suffer while we export our emissions abroad to be pumped out into the same atmosphere from a different location on the planet.

“The Chancellor fails to recognise that businesses need affordable finance for investment. While the Chancellor announced further funding for the National Wealth Fund and British Business Bank, business cannot approach the British Business Bank directly and must work with an accredited delivery partner which creates more barriers and costs.

“Ultimately, this Budget will do nothing to reverse the impact of the damaging National Insurance increases, employment laws, regulation, and tariffs which are harming our businesses and millions of people in the UK.”

The price for hospitality

Responding on x.com, local restaurateur and hospitality campaigner, Andy Lennox described the Budget as: “… a disaster for Hospitality. I hoped the Government would finally listen and deliver. I’m sad to admit I was wrong.

“Rates relief means little when employment and operating costs keep rising. What matters is the total bill landing on the doormat, and whether there’s enough left to keep people employed and the doors open. This Budget helped just 2.9% of Hospitality venues – and only just. The cavalry didn’t just fail to turn up. They ran away.

“Hospitality has been patient. We’ve put forward the evidence, explained the consequences and made the case for a VAT cut. We cannot keep running on warm words.

“To the MPs who have publicly backed a cut, thank you. Whatever your party, that support matters. To those who haven’t: don’t expect endless hospitality while staying silent about the policies putting us out of business. Perhaps it’s time the welcome on our doors reflected the support we get through yours.”

You can read the Budget highlights here, with the likes of Martin Lewis providing an instant reaction for consumers.