Business start-ups hail Bank's 'decisive action'

Date: 5th December 2008

British business start-ups have hailed the Bank of England's decision to cut the base lending rate.

Yesterday (December 4th), the Bank's monetary policy committee opted to reduce the level by 100 basis points to two per cent, its lowest rate since 1951.

Representatives from the British Retail Consortium (BRC) have welcomed the move, highlighting its potential to give the economy the kick-start it needs.

Director general of the BRC, Stephen Robertson, commented: "This is exactly the type of decisive action we need during these uncertain times.

"With the threat of inflation fading, the Bank of England is right to concentrate on jump starting the economy."

He added now that retailers had begun passing on VAT cuts to customers, it was up to the financial sector to now start lending to business start-ups in line with the new base rate.

Business start-ups looking for more information on how the new VAT rate and Bank of England base lending level will affect them should consider speaking to an accountant.