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As a business owner, what is your view on the Bank of England's base rate cut?

ended 08. August 2025

The Bank of England's (BoE) Monetary Policy Committee has today voted by a majority of 5–4 to reduce the base rate by 0.25 percentage points, to 4%, rather than maintaining it at 4.25%.

The cost of borrowing is now at its lowest level for more than two years - but the BoE did upgrade its estimate of inflation peaking at 4%, from 3.75%.

As a business owner, how do you think this will help or hinder your business or the economy?

We want businesses sharing their views on how this could help or hinder the economy - rather than general advice.

Responses ASAP please.

5 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
This rate cut is a welcome surprise and will offer some relief to borrowers. But it also quietly acknowledges what many of us on the ground are already feeling — that UK plc is struggling.

Unfortunately, that underlying economic malaise can’t be fixed with the odd small rate cut. This move may help sentiment, but it's no silver bullet. We need a broader strategy focused on growth, productivity, and confidence.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
In an unusual event as the base rate got cut, government borrowing rates increased. This was as a result of the right vote, only 5-4, in order of cutting rates. This signals to the market that rates will come down at a much slower pace that previously thought, maybe even just once more this year. That means the markets and the economy are in trouble!
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Riz Malik
Independent Financial Adviser at R3 Wealth
Today's rate cut offers much needed breathing space for businesses with loans tied to the Bank of England base rate. Lower repayments ease pressure on cashflow and could be the lifeline that struggling firms need to stay afloat.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
A 0.25% rate reduction represents monetary policy at its most timid. Property development projects currently are suffocated by borrowing costs while the BoE is treating this government's economic cardiac arrest with a paracetamol.

This cut will reduce our borrowing costs by approximately £250 per million pounds borrowed, a figure that would be laughable if it were not so tragic.

Meanwhile, the Bank has upgraded its inflation forecast to 4%, revealing its true priority: maintaining its reputation for hawkish discipline rather than reviving the productive economy, doing all this at our expense.

Development finance costs have tripled since 2021, turning viable projects into risky missions. Across the South East, construction has stalled, small businesses have folded, and property values continue their death march through endless down valuations. The Bank of England understands inflation but fails to grasp is that you cannot build economic recovery with financial timidity.
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Sam Kirk
Managing Director at J-Flex Rubber Products
You’d hope this downward trend would lead to lower borrowing costs for SMEs. However, with the economy still fragile and inflation remaining above target, its effect may be muted - particularly if broader business confidence doesn’t pick up and high street banks remain cautious about lending to small businesses.