Small business sector welcomes rate cut

Date: 9th October 2008

Britain's small business sector has welcomed the Bank of England's base rate cut, which was announced yesterday (October 8th).

The decision to reduce the rate by 50 basis points a day ahead of schedule - in unison with five other central banks - came as a surprise to many.

The Confederation of British Industry welcomed the decision, stating that it would reinvigorate the UK's small businesses.

The deputy director-general of the CBI, John Cridland, said: "This was an essential and timely rate cut which the CBI had called for to help restore business and consumer confidence.

"We have now seen major steps by both the government and the Bank of England to support the economy and the financial system."

It is now widely hoped in the sector that banks and other lending services will reduce their rates in accordance with the monetary policy committee's decision.

Small businesses have until the end of the month to file their self-assessment tax return, or until January 31st if filing online.