Manx Financial comments on UK interest rates cut

Commenting on UK interest rates being cut to 4.25 per cent providing a potential boost for UK investments, Douglas Grant, Group CEO of Manx Financial Group, said:

“The Bank of England’s decision to cut interest rates aligns with the positive news offered by the fall in inflation, providing a potential boost for UK investments after a period of economic stagnation. However, SMEs continue to face geopolitical instability and fragile supply chains demanding diversification and sustainable practices. With investment hesitancy rising, adaptable lending strategies and a focus on resilience are vital to navigating this uncertain economic landscape.

“UK businesses must rethink their financial frameworks to strengthen stability and resilience. Regular budget reviews, agile supply chains, and strategic bulk purchasing can help offset rising costs, while embracing new technologies and streamlining operations will drive productivity and efficiency gains. Recent data from Manx Financial Group shows nearly a third of UK SMEs have paused or scaled back operations due to financial constraints, an improvement from 40 per cent last year, but still a worrying sign. Access to external funding remains a hurdle for around 10 per cent of SMEs, reinforcing the need for a more inclusive, resilient lending landscape.

“As SMEs power growth, employment, and innovation, the Labour Government must prioritise creating a stable, supportive financing environment. Yet, while its ambition for growth is clear, we’ve seen little progress in translating this into legislation that improves funding access. Slowing GDP growth, rising wage costs, and geopolitical instability are pushing SMEs to cut investment, scale back growth plans, and preserve cash. In this environment, demand is growing for flexible, Sterling-based working capital solutions – hallmarks of alternative lenders – as traditional finance tightens. This is a time for lenders to step up, not step back.”

About Manx Financial Group PLC
Manx Financial Group PLC (MFG) is an AIM-listed company. It is the holding company providing a range of diversified financial services to customers in both the Isle of Man and the United Kingdom. The sectors include banking services, payment solutions, foreign exchange, money saving solutions, wealth management, general insurance, and life insurance through its subsidiaries Conister Bank, Conister Finance & Leasing, Edgewater Associates, Manx Collections, MFX, Blue Star Business Solutions, The Business Lending Exchange, Payment Assist and Ninkasi Rentals & Finance.