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

Today (18th March), the Bank of England decided to keep interest rates on hold. Local Accountancy Firm, Azets, give their thoughts on the decision today.

In response to today’s announcement on interest rates remaining the same, Adam Wilson, Partner, based in the Southampton office 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 SMEs, a future rise in interest rates could be the straw that breaks the camel’s back and they will look to the government to help them navigate through the extra hardship this will bring. 

“To help SMEs not only survive but thrive through the challenges they’re facing from the pandemic and Brexit, and make sure they are robust enough to withstand future interest rate rises, the government needs to ensure that debt holders (lenders) do not take unnecessary action against these companies. Companies must be allowed to try to get back to some form of normal trading that will allow the servicing and ultimate repayment of this debt mountain.  To future proof their businesses for the long term, SMEs will need to ensure their business models are fit for purpose, have access to liquidity and maintain a very close relationship with their lender.”

To find out more about Azets Accountancy, click here