West Midland business leaders welcomed the Bank of England’s decision to keep interest rates at a historic low of 0.5 per cent.
Michael Ward, president of Birmingham Chamber of Commerce, said the move by the Bank’s Monetary Policy Committee, and other government initiatives like the extra £95 million announced for the Regional Growth Fund, is a welcome step.
He added: “This is particularly the case for businesses based in the West Midlands, which is hit hardest by unemployment.
“It appears that the Bank of England is listening to the voice of business but we do recognise that interest rates will have to rise at some point. The tentative economic recovery will be helped by today’s decision to postpone any rise.
“Businesses have to learn to cope with the government’s deficit-cutting regime, focusing on efficiency savings and moving away from over-reliance on public sector contracts.”
Patron Banks praised for backing new businesses
Birmingham Chamber of Commerce Group (BCCG) also commended the Prime Minister’s announcement of a ground-breaking deal which will release £95 million as part of the Regional Growth Fund.
RBS/Nat West will facilitate £70 million and HSBC will facilitate £25 million. The banks will not profit financially from the administration of these schemes.
Small businesses which are unable to secure commercial funding for their project have the potential to benefit from government support through the banks’ regional networks.
Jerry Blackett, chief executive of BCCG said: “Through the banks and Chamber networks, Birmingham, Burton, Chase, Lichfield, Tamworth and Solihull businesses will have the opportunity to invest in new capital assets, such as plant and machinery which in turn will create much needed new jobs.
“SMEs are the lifeblood of our economy and account for the vast majority of Chamber membership. We need to support them and help them expand and with this new initiative, backed by our patrons, businesses will be better able to grow their way out of these current economic difficulties.”
