U.K. Interest Rates Interest Rates Cut to 4.5%

The Bank of England announced today that it has cut interest rates to 4.5%, bringing rates down to the lowest level since June 2023.

Kate Nicholls, Chief Executive of UKHospitality, said: “Cutting interest rates was the right move from the Bank of England and I’m pleased that they’ve done the right thing to incentivise growth.

“Driving growth has to be the priority and lower interest rates will play a part in achieving that goal.

“Practically for hospitality businesses, it will provide some much-needed relief for those still paying back Covid loans but we urge the Government to allow more flexibility over the repayment periods for those loans to further ease the pressure on venues.

“If the Government really wants hospitality businesses to help deliver its growth agenda, it should delay the changes to employer NICs.

“After the sector was the biggest contributor to economic growth in November, these tax changes will slam the brake on the sector’s growth potential and instead force businesses to cut investment, cut jobs and increase prices.”