THE chancellor is going for “growth at any cost” and people can “only hope” he has made the right judgements, Hampshire business leaders have said after Kwasi Kwarteng's “mini” budget.

The chancellor the basic rate of tax to 19p from next April, scrapped the 45p rate for people earning more than £150,000 and lifted the cap on bankers’ bonuses.

He cancelled the planned rise in corporation tax, along with the levy for health and social care introduced by Boris Johnson’s government, and reduced stamp duty.

Alan Rolfe, senior tax manager at Hampshire accounts and business advisers HWB, said: “The message seems to be growth at any cost and the measures announced included some surprising tax cuts, while other measures were more predictable.

“While the measures were almost universally providing reductions to the tax burden for individuals and businesses, the bigger worry of increasing inflation and higher interest rates are still a major concern and the risk of a recession affecting business and personal income has not been removed.”

Peter Taylor, president of Hampshire Chamber, said: “There is a pressing need for business growth to provide economic stability and revenues for the public purse in the longer term.

“Our members will welcome a number of the pro-growth measures announced by the chancellor, especially the reversal of corporation tax and National Insurance rises, but we will have to wait and see if he has done enough overall to release the wave of investment we need at a time when we have the highest inflation rate for decades.

“The mini-budget came just a day after another interest rate rise, which only increases borrowing costs, and a dramatic intervention to cap record high energy prices. At this critical point, we can only hope the chancellor has got the balance right between tax cuts, spending commitments and the need for more government borrowing to finance his strategy.”

Phil Hoyle, landlord of the London Tavern in Poulner, Ringwood, welcomed the cancellation of proposed increases in the duty rates for beer, cider, wine and spirits.

He said: “While I welcome this announcement pubs and the whole hospitality sector face a very difficult future.

“All our costs have rocketed and with the cost of living crisis fewer people are going out.

“Pubs are not just where people go to eat and drink, they are community hubs and are important for society. Visiting your local pub, meeting people there and going for a bite to eat could be the difference between keeping it or losing it.

“And with the proposed price rises axed for drinks there is a little added incentive.”