OWNERS of Worcestershire's small businesses have welcomed the Bank of England's decision to hold interest rates at half a percent.

Judi Brazkiewicz, chairman for FSB Worcestershire, said: "Small business owners are gradually becoming more confident in the economy. We now live in a different world to that of the mid-2000’s. Things have changed and the often modest amounts of money business owners are able to plough into business growth, together with a slight improvement in access to finance, will help employers to employ and those seeking work to find it.”

John Allan, the FSB national chairman, added: "This is the longest period of unchanged interest rate policy since the second world war, but maintaining the rate at half a percent remains the right decision. With inflation likely to drop into deflation, encouraging investment should continue to be the top priority.

“Our members’ confidence remains strong, with many small businesses planning to invest in their firms, hiring new staff and increasing wages. When the time does come to raise rates, it should be done gradually to allow businesses to absorb costs and plan ahead.”