Responding to the Bank of England’s decision today to reduce the base rate by 0.25% to 4%, Hampshire Chamber Chief Executive and Executive Chairman Ross McNally said:
“Businesses will welcome this latest cut, the fifth in a year, as it makes borrowing cheaper and should increase consumer spending power.
“It’s good news particularly for those smaller businesses among our membership who have put investment and recruitment plans on hold due to rising costs.
”Small and medium-sized enterprises (SMEs) are often cited as the backbone of the economy as they create so many jobs and underpin so much prosperity.
“However, if the government is to truly help SMEs while achieving success with its wider growth strategy, it’s going to take more than another quarter per cent rate cut from the Bank of England.
“Ministers must continue to work with chambers of commerce to help our members access finance, leverage opportunities for market growth and navigate cost pressures.
“That means we need to see continued action against inflation, longer-term reform of business rates and no further tax rises loaded on firms and employers in the Autumn Budget.”
David Bharier, Head of Research at the British Chambers of Commerce said:
“Businesses will welcome the decision to cut the base rate to 4%, marking a further move away from a prolonged period of elevated borrowing costs. With signs that the labour market is beginning to loosen and unemployment edging upwards, the Bank is right to act to mitigate the risk of a deeper downturn.
“SMEs in particular have been under sustained pressure from cumulative cost increases and external shocks. The impact of April’s national insurance rise is now tangible, with firms reporting reduced investment and recruitment plans. As today’s report by the Bank highlights, our Q2 survey showed 56% of firms citing tax as bigger concern than earlier in the year. Ongoing global disruptions have compounded the unpredictability.
“Rate cuts alone are only part of the solution. To restore business confidence, firms will need to see a roadmap to lower their cost burden, further improvements to ease trade friction, and greater investment in AI and infrastructure.”
About Hampshire Chamber of Commerce
Hampshire Chamber of Commerce is the independent voice of local business across the county and one of the largest regional business networks in the UK. With a strategic vision to ‘unlock Hampshire’s potential’, Hampshire Chamber brings together the combined influence, strength and expertise of the county’s three former major chambers. It works with over 2,000 individual firms spanning all sectors and sizes of business. Member services include training, advice, international trade documentation, events, networking opportunities and lobbying to policymakers on issues affecting business. Hampshire Chamber’s business network is designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.
About the British Chambers of Commerce - Where Business Belongs
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 51 Chambers of Commerce across the UK, representing thousands of firms. It provides a unified voice for these companies, rooted in their communities, at the national level. We link our UK network with over 75 international member chambers, to promote trade and investment, and work for a better future for businesses around the world.
For more information, visit: www.britishchambers.org.uk