07 Feb 2025Businesses will get a 'measure of relief' after interest rates were cut by the Bank of England, the British Chambers of Commerce (BCC) said. The Bank cut the base rate from 4.75% to 4.5%, the lowest level since June 2023. The Bank's Monetary Policy Committee (MPC) voted seven to two in favour of the cut - those two members wanted a bigger cut, to 4.25. The Bank also cut its growth for the UK economy to 0.75% in 2025, down from a previous forecast of 1.5%. David Bharier, Head of Research at the BCC, said: 'Given the raft of cost pressures and global economic uncertainties businesses are facing, [the] interest rate cut provides a measure of relief for SMEs. 'UK businesses are facing a range of challenges. Domestically, firms face increased tax bills and employment costs within weeks, with national insurance and minimum wage hikes. Internationally, a looming trade war could hit many UK importers and exporters. This is likely to feed into heightened inflation throughout the year. 'The government needs to pull all levers possible to ease the cost pressures on firms and unlock investment opportunities. That includes accelerating business rate reform, supporting infrastructure projects and boosting trade opportunities.'