A missed opportunity for SME support – by Nick Smith

Whilst we recognise the Bank of England’s cautious approach in holding the base rate at 4%, we strongly believe that this is the wrong decision. A crucial opportunity to support UK SMEs has been missed, especially given the difficult economic state.  

With recent data from the Office for National Statistics showing that job openings are reported to have fallen by 5.8% between May and July, and the economy flatlining in July, small businesses continue to face mounting operational pressures. A modest rate reduction would have provided much needed breathing room to ease cash flow pressures and support potential investment. 

In the run up to the Autumn budget in November, now is the time for the government and relevant parties to place SMEs back at the heart of the UK economy. We urge the Monetary Policy Committee to make a different decision at the next rate review in the coming months. Until then, we are ready to step in and support SMEs.