The credit crunch poses an ever growing danger to British firms and the Bank of England Monetary Policy Committee should cut interest rates as a matter of urgency, one expert has claimed.
According to David Kern, economic adviser to the British Chambers of Commerce the cut of 0.25 per cent which is expected to be announced on Thursday is "urgently needed and long overdue," but more will also need to be done.
He said: "Threats to the economy have worsened since the March MPC meeting, both globally and in the UK.
"The American economy may be already in recession. In the UK, growing risks of falling house prices will have damaging effects on consumer spending and the wider economy."
He added that while inflationary pressures still exist, the threat to growth is more urgent and the MPC "must be more proactive".
Last week, Simon Briault of the Federation of Small Businesses claimed that tax and employment legislation pose the biggest threat to the growth of SMEs.
