East Midlands Chamber has given its reaction after the Bank of England announced the interest rate would remain static at 4%.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “While economists widely expected there would be no movement yet from the 4% level the interest rate fell to in August, businesses planning to borrow to invest to grow will take little comfort amid a challenging climate of high inflation and corporate taxation. Respondents in our most recent Quarterly Economic Survey placed those factors as their greatest concerns.
“High costs and inflation – currently almost double the government’s 2% target at 3.8% – do not provide an easy playing field for firms so it’s essential the government does what it can to bring these down and ease pressure.
“The impact on businesses from measures revealed in the last Autumn Budget cannot be understated – higher employer National Insurance contributions and a higher national living wage have made the terrain tougher than it should be.
“Having shouldered the weight of increased costs imposed at the last Budget, the government must not allow further hikes or anything that would hamper business growth in its next announcement on 26th November.”
