An interest rates cut is "unlikely to bring any meaningful financial relief" to businesses according to an Oxfordshire financial specialist.

Mark Barrie, head of debt advisory at Azets, which has offices in Witney and Bicester, said: "Businesses don't feel like dancing.

"The 0.25 per cent reduction to 4.75 per cent will be welcomed by a lot of businesses, many of whom are having to borrow money to either keep afloat or expand.

"But they know the cut is unlikely to bring any meaningful financial relief because of new cost pressures coming down the track."

The last time the UK had an official base rate of 4.75 per cent was 18 years ago in August 2006, but Mr Barrie said the "welcome" cut was "hopefully" the "start of many more rate reductions to come".

He continued: "Companies are already concerned about the bottom-line impact of the increase in employers National Insurance contributions from next April.

"Impending rises in the National Living Wage for those aged 21 and over and the National Minimum Wage, for those under 21, will also feed into higher fixed costs."

Mr Barrie also said many companies have been "reeling" following record inflation, which reached a 41-year high of 11.1 per cent two years ago.

He added: “All of those consequential factors, along with the base rate hitting a 16-year high at 5.25 per cent in August 2023 before coming down to 4.75 per cent, is leaving companies punch-drunk."