Thursday 15 December 2022

James Watkins, Head of Policy and Public Impact at London Chamber of Commerce and Industry (LCCI), said:

“The Bank of England’s decision to raise interest rates today for the ninth consecutive time is an understandable response to rampant inflation, but it will create further strain on London businesses. The last time we saw interest rates this high was during 2008 financial crisis, and many businesses will be asking if they will be able to afford future loans.

“Businesses need the Government’s support now more than ever. We know that the cost of financing is going through the roof and that businesses are already having issues accessing working capital and securing business loans. Unfortunately, this is only going to get harder in the immediate future.

“While we understand that this move is designed to bring down inflation, the effects will be felt immediately by thousands of businesses, especially those in London and smaller businesses.

“What the move won’t do is change the path of soring energy costs which continue to cripple businesses large and small. The Government must announce extended support for all businesses before the end of the year.”

ENDS