The lowering, which marked the first cut since the start of the pandemic in March 2020, has been welcomed by a number of trade bodies followed by calls for further easing alongside implementation on business rates reform.
UKHospitality deputy chief executive Allen Simpson said: “I hope this will provide some relief for businesses that are continuing to pay back Covid loans and encourage consumers to spend.
“Now is the time to press the accelerator on growth. We need to see interest rates continue to fall and for the Government to urgently implement its promised reforms to business rates.
“Combined, this will see a meaningful and much-needed boost for hospitality businesses.”
Significant step
Night-Time Industries Association (NTIA) CEO Michael Kill welcomed the cut from the previous 16-year high before citing there was a small respite for struggling sector businesses.
He said: “This decision is a significant step in the right direction for our sector, which has faced immense challenges over the past few years.
“High interest rates have placed a substantial burden on businesses within the night-tine economy, exacerbating financial pressure and hindering recovery efforts post-pandemic.
“The reduction in interest rates is a positive signal that will help alleviate some of these financial strains, providing much-needed relief to our members.
Stimulate spending
Kill added: “Lower interest rates will reduce borrowing costs, enabling businesses to invest in growth, create jobs and continue to provide the vibrant nightlife that is so vital to the cultural and economic fabric of our cities.
“This move will also help to stimulate consumer spending, which is crucial for the survival and prosperity of nightlife venues, events and associated industries.
“We look forward to working with the Bank of England, Government officials and other stakeholders to build on this progress and secure a thriving future for the night-time industries.”
