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."
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'."
However, Phil Smith, managing director of South West chamber of commerce Business West, welcomed the measures introduced by Mr Hunt. He said he hoped the changes would lead to increased business confidence and greater economic stability.
"Employers and businesses will be relieved that the most important aspects of the mini budget for jobs and skills in the South West has been retained by the new chancellor’s emergency statement, with the cut to National Insurance progressing as planned," he said.
“Firms look to the government to provide a stable environment for investment. [The] cancellation of £32bn of unfunded tax cuts, plus substantial tightening of the energy price support beyond Spring 2023, seems to have been well received by the markets which will help keep business borrowing costs and foreign exchange rates on a more sustainable footing than otherwise."
A survey of 400 Business West members carried out before the min-Budget found that only 9% felt confident in the nation’s economic prospects while record numbers of firms said they were worried about inflation.
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