Another month, another business goes belly up

As the car industry takes another blow with the closure of Peugeot's Ryton factory and fuel prices continue to escalate with petrol prices now rising above £1 per litre, business lobby group Birmingham Forward says the Monetary Policy Committee (MPC) must change its steady as she goes policy on interest rates sooner rather than later. Diane Benussi, chairman of Birmingham Forward and managing partner of Benussi & Co, said: "Midlands businesses need some positive reassurance in the form of a quarter point interest rate cut to ensure we do not fall into recession. "Many of our firms' clients will no doubt have experienced some difficulties in the wake of the closure of the Peugeot factory, just as they did when MG Rover collapsed. "All of these pressures, combined with the recent rise in unemployment figures, will no doubt have a knock-on effect on the professional and financial services sector. The MPC must continue to keep a watchful eye on the situation as both businesses and consumers continue to tighten their purse strings. "A cut next month is needed to give businesses a confidence boost and could ease the pressure over the coming months."

• Login to post comments