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Interest rates remain the same: UK’s largest accountancy firm for SMEs comments

Interest rates remain the same: UK’s largest accountancy firm for SMEs comments

In response to today’s announcement on interest rates remaining the same, Paul Clifford, Midlands Regional CEO of Azets, the UK's largest regional accountancy and business advisors to SMEs, said:

 

“While today’s interest rate decision is unlikely to have much impact as any debt cost reduction is likely to be retained in the businesses and not lead to behavioural change, low interest rates will not be with us forever. For many already struggling Midland SMEs, a future rise in interest rates could hit borrowing quickly and significantly, resulting in hardship and reduced investment.

“The Budget was a signal from government that it would continue to support SMEs not only survive but thrive through the challenges they’re facing as a result of the COVID-19 pandemic and Brexit. To make sure they are robust enough to withstand future interest rate rises, the government now must continue this support and ensure that debt holders (lenders) do not take unnecessary action against these companies.

“Companies must be supported to return to normal trading that will allow the servicing and ultimate repayment of debt. SMEs will need to ensure they have robust business plans and cashflows which are supported by the bank and can maintain liquidity.”


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