Small businesses, the backbone of the UK economy, are feeling disheartened by the recent decision made by the new Chancellor of the Exchequer, Jeremy Hunt. In a surprising move, Hunt has decided to backtrack on tax-cutting measures that were initially intended to boost growth. Just six days ago, he reversed the planned cut in corporation tax, which would have lowered the rate from 25 to 19 percent. Additionally, he also made a U-turn on the proposed 1.25 percentage point reduction in dividend tax. This is particularly concerning for many small business owners who pay themselves through dividends. Overall, Hunt’s measures, aimed at stabilizing the nation’s finances, have unfortunately brought unwelcome news for small firms.