Chamber comments on drop in interest rate

Following the Bank of England’s decision to lower the interest rate by 0.25 to 4.75%, a spokesperson for the East Midlands Chamber has given its reaction. The reduced rate is the second cut this year.

Director of Policy and Insight Richard Blackmore said: “While businesses looking to borrow may be buoyed a little by this anticipated further cut, the high cost of doing business continues to be a monumental challenge, not helped as firms still reel from the measures unveiled in last week’s tough Budget and face difficult decisions. 

“Alarm bells sounded in our last Quarterly Economic Survey, which showed investment from East Midlands businesses on machinery had fallen by 13% and on training by 5% – when spending stalls, so does growth.

“Political leaders, at both regional and national level, need to urgently act on the needs of the East Midlands business community, and in the light of the testing Budget announcements made last week, we’ve surveyed a wide cross-section of our members across multiple sectors on the implications raised by the Budget.  Our findings will be presented to local, regional and national political leaders.”