PETER Lewis, who owns TaxAssist Accountants in Hove, claimed local business owners were left out in the cold by Philip Hammond.

He said hard-working small business owners were given absolutely no recognition of the major contribution they make to the UK economy.

Mr Lewis said: “Small businesses are already facing huge challenges from compulsory contributions to staff pension pots, the National Living Wage, changes to the way dividends are taxed and onerous business rates and there was no respite.

“In fact the further increase in the National Living Wage announced – from £7.20 to £7.50 an hour from April – could deter recruitment decisions and slow down growth.

“We would have liked to see more concrete measures to encourage small business growth, such as an increase in Employment Allowance, or the return of the small companies’ rate for corporation tax.”

Hayley Bevis, senior associate solicitor at law firm Coffin Mew, which has offices in Brighton, said the aim is to build a stronger and more resilient long-term British business base.

She said: “The announcement of a new National Productivity Investment Fund which will provide for £23 billion of funding over the next five years – together with an additional £2 billion per year for research and development by 2020-21 and the fall in corporation tax to 17 per cent – all helps towards the aim.

“The Chancellor’s next challenge is getting that base to remain in Britain for the long haul.”

The British productivity gap was noted as being a significant challenge compared to our counterparts in the US and Germany which were noted as being 30 per cent more productive.

Hayley Bevis said: “The Chancellor made it clear that Britain must address this productivity gap to ensure that we do not fall behind our counterparts.

“Some have theorised that the demise of British productivity has resulted from a reduction in the levels of pay during the recession and those finding work in lower paid jobs.

“Pay levels have, however, also been addressed by the Chancellor, with a rise in the National Living Wage from £7.20 to £7.50 per hour due in April 2017 and a rise in the personal allowance to £11,500 at the same time, with a further commitment to raise personal allowances further during this government.”

That rise of 30 pence an hour caused some concern.

Rob Payne, CEO of Best Western Great Britain, which has premises in Hove, Eastbourne, Steyning, Bognor and Haywards Heath, said: “The increase will help make the hospitality industry more attractive which we welcome.

“But it also adds to the price pressures that hotel owners are already feeling and once again comes without a roadmap for future increases, which our members tell us they need to help budget with confidence.

“Our members are also concerned that the well-intentioned increase could end up backfiring as businesses across the hospitality and tourism industries are either forced to pause investment, reduce training and development opportunities for existing staff or worse still, reduce headcounts in order to absorb the additional costs.

“We do not want to see any of that happen.”

He called for tourism VAT to be cut from 20 per cent to five per cent.

Petrol was hot on the agenda again and Lewes MP Maria Caulfield welcomed the decision to freeze fuel duty.

It comes after more than 50 MPs, including Ms Caulfield, signed a letter to Mr Hammond urging him to help hard-pressed families and small businesses.

The letter was sent by Dover MP Charlie Elphicke, chairman of the FairFuelUK Parliamentary group, earlier this month.

She said: “Freezing fuel duty is a huge boost to drivers as well as being of massive benefit to local businesses.”

Mike Chapman, senior manager at Knill James Chartered Accountants in Lewes, said it was a “business as usual” offering from the Chancellor.

He said: “With a forecast for reduced growth in 2017, it was important that the Chancellor presented the UK as the natural home for business and he stressed the commitment of several high-profile multinationals to continue to invest in the UK economy.

“The drop in the headline rate of corporation tax to 17 per cent from 1 April 2017, the lowest rate in the G20, confirmed the chancellor’s priority “to ensure that Britain remains the number one destination for business” while acknowledging the importance of certainty and stability to business as a whole.

“On a less upbeat note, Mr Hammond did not shy away from the issue of the productivity gap between the UK and its immediate competitors and focused on the need to bridge this divide through research and innovation.”

David Bywater, senior partner at Crawley-based KPMG in the South East, said the Chancellor made positive noises on supporting SMEs but pain could be on its way for micro businesses.

He said: “Despite the Chancellor making a great deal of noise on behalf of the SME community, the announcement of a consultation on a review of the way people work will cause concern for large swathes of micro businesses.

“As an estimated 4.2 million businesses that make up the UK’s 5.5 million SME community have just one employee, the outcome of the consultation could have massive tax implications for small business owners in the future.

“In general there were a number of micro measures introduced for SMEs providing some good mood music around supporting the SME community.

“While SMEs have become far more adept at selling into overseas markets, there remains a huge amount of untapped potential in the number of them who aren’t currently involved in exporting.”