East Midlands Chamber has said the Bank of England’s decision to hold the interest rate at 3.75% will add frustration for firms in the region looking to borrow so they can invest at a challenging time.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “While the decision not to cut the interest rate just yet was widely expected by economists as the Bank of England grapples with trying to bring inflation down, businesses seeking to borrow, to unlock investment to grow, will be disheartened amid such tough conditions.
“With unemployment having reached 6% in the East Midlands and our Quarterly Economic Survey findings revealing hesitant hiring, as well as stalled investment in plant, machinery and training, it’s clear business needs support.
“When firms report significant concern over business rates, the third greatest worry among the region’s businesses in our latest research, alongside anxiety over high energy costs and inflation, saying they feel pressure to raise prices to cover costs, that’s a clear wake-up call showing the need for supportive policies.
“The Chamber has set out a series of actions political leaders need to take so the East Midlands can thrive in the recently published Framework for Growth.
“Let’s reduce unemployment by addressing the skills gap so we get suitable candidates into roles; let’s get support on energy costs and let’s get business rates looked at again as a priority, so we don’t just have a sticking plaster for pubs for a couple of years while other business types miss out on relief.
“Business must be incentivised to invest and the Framework for Growth outlines how to break down the barriers that currently block the East Midlands reaching its full potential.”
To view East Midlands Chamber’s Framework for Growth click here.
