Lloyds passes on rate cut to small firms

Date: 9th January 2009

The commercial lender Lloyds TSB has announced that it is pass on the 0.5 per cent base rate cut to its business customers in full from January 12th.

Its decision comes on the back of the Bank of England yesterday revealing that the lending rates would be reduced by 50 basis points to 1.5 per cent.

The bank had promised last month as part of a six-point charter to pass on any such cuts in their entirety.

Managing director of Lloyds TSB commercial, John Maltby, said: "We want to give our customers the full benefit as soon as possible to help them through a particularly tough year."

Mr Maltby added that as shown by the rate deduction, the bank remained committed to supporting businesses through the economic downturn.

Small firms should also keep in the mind the upcoming self-assessment tax return deadline, and all submissions should be made online to HM Revenue and Customs by January 31st.