The Bank of England has cut interest rates from 4.75% to 4.5% – the lowest base rate since June 2023, in a move which will be welcomed by business.
But the British Chambers of Commerce (BCC) has warned more must be done to boost confidence and drive growth. 
David Bharier, Head of Research at the BCC, said: “Given the raft of cost pressures and global economic uncertainties businesses are facing, today’s interest rate cut provides a measure of relief for SMEs.
“Since the Autumn Budget our research has shown a significant fall in business confidence, with fewer firms expecting to increase turnover over the next twelve months. The Bank’s report references our data, and their GDP forecast reflects this. Policymakers must act quickly and work with businesses to rebuild confidence and drive growth.
“UK businesses are facing a range of challenges. Domestically, firms face increased tax bills and employment costs within weeks, with national insurance and minimum wage hikes. Internationally, a looming trade war could hit many UK importers and exporters. This is likely to feed into heightened inflation throughout the year.
“The government needs to pull all levers possible to ease the cost pressures on firms and unlock investment opportunities. That includes accelerating business rate reform, supporting infrastructure projects and boosting trade opportunities.”
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