Last week’s cut of the Bank of England’s (BoE) base interest rate by 25 basis points was largely seen as a step in the right direction as the UK seeks to improve productivity and growth, even if some wanted a faster, more powerful boost by doubling the cut.
“The upcoming reduction to business rate relief from 75 per cent to 40 per cent has also no doubt been a significant concern for those running small businesses within the hospitality, retail and leisure sectors.”.
“Many savvy consumers who find themselves with extra income to spend will actively seek out independent retailers or family-owned businesses, and since the devastation of the Covid pandemic, tend to see surviving small, local and independent companies as the lifeblood of economic growth within their regional communities.
Chair Martin McTague added that lower borrowing costs could “encourage small firms to take a chance on a new piece of equipment, bigger premises, or a training course to expand their skills [which can] help to deliver the economic growth that we all want and need to see.”.
The Federation of Small Businesses - a UK organisation campaigning for the SME community - has called upon lenders to pass interest rates on quickly so companies can “think about growth and future plans, rather than just survival”.
