Muniya Barua, Deputy Chief Executive at BusinessLDN, said:
“While good news for savers, an interest rate rise will pile further pain on businesses which have accumulated debt during the pandemic and are facing intense cost pressures.
“With companies going under at the fastest rate since 2009 and a crunch point looming in April as energy support is slashed, just as business rates bills land, the Government must use next month’s Budget to help firms navigate these stormy economic waters.
“That includes short-term action on business rate relief for small businesses, targeted energy support should prices remain high and looking at re-introducing VAT-free shopping to boost international tourism and help hard-pressed hospitality and retail firms. Allowing regions to pool various government pots of funding would also deliver more bang for buck by allowing resources to be targeted where they are most needed — whether that’s on skills or transport.”