Emily Eyre, of Cucumber Catering in Sittingbourne, Kent, said she would have to raise prices and be deterred from hiring staff, but the budget was “not as bad as expected”.

He said: “The employment allowance increase will offset the increase in national insurance. I’m really pleased to see business rates easing in the food and beverage services and hospitality sectors.”

Tim Aker, of the Federation of Small Businesses in Kent, said: “Businesses grow best when they can see the direction of travel and know what we are up against.

“My hope is that today we start to see where the country is heading and a positive message about the economy begins to emerge.”

Spending on education will include £1 billion for special educational needs; It was partly welcomed by Esher and Walton’s Liberal Democrat MP Monica Harding, who said the figure should be £4bn.