Businesses 'disappointed' with base rate cut

Date: 12th January 2009

Small firms have expressed their disappointment at last week's Bank of England base rate cut, it has been revealed.

According to the British Chambers of Commerce (BCC), the 0.5 per cent reduction was insufficient to the sector's and wider economy's requirements.

The organisation, which represents a number of limited companies and partnerships, believes that the Bank's monetary policy committee (MPC) must look to combat rising employment and plunging house prices with further downward revisions of the base rate.

David Kern, chief economist at the BCC, said: "We believe it is an inadequate reaction to the rapid worsening in economic circumstances."

Mr Kern added that the MPC should cut rates to "almost zero" in the coming months if the recession is not to be prolonged.

Another pressing issue for small firms is the upcoming self-assessment tax return deadline, with all submissions to be made online by January 31st.