Following the Bank of England’s decision to reduce interest rates to 4.25%, Babs Murphy, Chief Executive of the North & Western Lancashire Chamber of Commerce said:
“The interest rate reduction to 4.25% offers some relief to businesses facing multiple challenges. Our research clearly indicates that SME confidence has been declining since the twin issues of domestic tax increases and a global trade conflict emerged.
“Many businesses, seeking financial stability, are eager for further rate cuts in the coming months. The recent hikes in National Insurance contributions, along with other rising costs, are already impacting firms—leading to higher prices, hiring freezes, and decreased investment. We have been advocating for a clear tax roadmap to help businesses understand when these pressures might ease.
“On the international front, this announcement of a framework deal between the US and the UK could bolster business and investor confidence. Nevertheless, the broader effects of the ongoing tariff tensions will continue to be felt. Progress in other areas, such as the EU-UK relationship reset and this week’s trade agreement with India, will be important, though their full impact may only become evident over the coming months.
“Looking ahead, the next few months are likely to remain uncertain and volatile. The full consequences of the global trade tensions are still unclear, and businesses will be counting on government action to provide stability and prevent further hardships.”
