Rachel Reeves has announced an extra £29bn per year for the NHS in England, along with funding boosts for defence and housing, as she set out the government’s spending plans until the end of the decade. Here are the responses from Dorchester Chamber President Steve Bulley. Alex Veithch, Director of Policy at the British Chambers of Commerce and Dorset Chamber Chef Executive Ian Girling.
Steve Bulley President of Dorchester Chamber for Business said:
“The 2025 Spending Review has set the stage for the UK’s economic direction, but what does it mean for micro and small businesses and the self-employed? While the government has outlined plans to invest in growth, concerns remain about whether these measures will truly support the backbone of the economy—small businesses.
“One positive takeaway is the digital transformation of HMRC, which aims to streamline tax management and make compliance easier. This could reduce administrative burdens for small business owners, freeing up time to focus on growth. Additionally, the government’s commitment to green business initiatives may open doors for those in sustainable industries.
“However, challenges persist. Rising energy costs continue to put UK businesses at a disadvantage compared to international competitors. Meanwhile, higher employer National Insurance contributions and minimum wage increases are squeezing margins, with many small businesses struggling to absorb these costs.
“For micro-businesses and sole traders, access to funding and regulatory support remains a critical issue. The Spending Review must go beyond rhetoric and deliver tangible relief to ensure small businesses can thrive. As the voice of Dorchester’s business community, we will continue advocating for policies that truly support our members.”
Responding to the Comprehensive Spending Review, Alex Veitch, Director of Policy at the British Chambers of Commerce, said:
“Business has been waiting for Government to show it understands the deep-rooted problems holding back our economy and how they can be solved.
“Today we have seen signs they get it, with action to address some of the key issues that can help firms.
“The Chancellor’s pledges on £15bn of regional infrastructure investment, a £14bn commitment to Sizewell C and an £86bn package for research and development funding can make a real difference.
“But the government must not give with one hand and take with the other. While plans for investment are welcome, we are clear that, if we are to sustain meaningful growth, there can be no further taxes on business in the autumn budget.
“Firms will also want to hear a lot more about the replacement for the Shared Prosperity Fund. The current information about the new scheme suggests it may be more limited in nature, and broad access to this scheme will be essential.
“These issues aside it was welcome to see a £2bn focus on Artificial Intelligence support. Many SMEs tell us they are still struggling with how they will get the best from AI, if they plan to use it all.
“The £6bn set aside for munitions production and separate funding for carbon capture, usage and storage clusters, including the Acorn Project in Aberdeenshire, are also critical to supply chains across the UK.
“New infrastructure projects will also provide investment opportunities for these supply chains, generate wealth, which is injected back into their regions, and create additional economic capacity.
“So, it was also good to hear the Chancellor talking about the government’s commitment to training, education and skills.
“Too many times in the past, big infrastructure projects have been beset by inefficiencies, delays and costs overruns.
“If we are to build on a greater scale across the whole country then we need a pipeline of new planners, carpenters, architects, technicians and construction workers.
“That’s why guarantees of £1.2bn per year of future funding for apprenticeships and training is so important.
“Today’s announcements provide us with the broad framework of where the government will invest. But the forthcoming Industrial and Trade Strategies will still have heavy lifting to do if our economy is to achieve the strong and sustained growth, we all desire.”
Ian Girling Cheif Executive of Dorset Chamber added:
“Although there were measures in the Chancellor’s spending review to be welcomed, concerns from business remain strong.
“While it was encouraging to see funding announced for classroom improvements at Budmouth Academy in Weymouth, Dorset was once again notable by its absence in other major spending announcements.
“However, there may be opportunities once the small print is examined in such areas as AI, innovation, research and development funding, transport infrastructure, rail and
training and upskilling young people.
“It is particularly important that many of the world class defence firms we have in Dorset benefit from the spending uplift in this sector.
“It was good to see the Chancellor prioritise affordable housing, as shortages of housing stock and high property prices continue to be a major barrier to economic development in Dorset. We must be able to attract people to this area to support business growth.
“Dorset Chamber will continue to lobby for business to fight for the county’s fair share and will do all it can to support our politicians, leaders and other representatives in this endeavour too.
“Finally, Dorset businesses have consistently demonstrated their positivity, resilience and strength over recent years but many will be concerned about what is coming down the tracks in the Chancellor’s Autumn Budget.
“There must be no more taxes on business faced with ever increasing costs, a difficult labour market and burdensome red tape if the Chancellor is to achieve the growth she so desperately needs.
“While she may have splashed the cash today, she must not rinse businesses for it tomorrow.”
With around 100 members any business in Dorset can join Dorchester Chamber from business for £60p/a (no VAT).
