Today the Bank of England has announced a cut in the base rate of interest from 0.75% to 0.25% taking the cost of borrowing back down to the lowest level in history. The reduction is aimed at freeing up billions of pounds of additional lending power to help banks support businesses.

Subsequently the Chancellor also announced measures to help the UK economy and businesses in his Budget Statement. Further details of the Budget Statement will follow tomorrow.

Mark Carney, the outgoing Governor of the Bank of England, said policymakers had seen a “sharp fall in trading conditions”, including spending on non-essential goods. “The Bank of England’s role is to help UK businesses and households manage through an economic shock that could prove large and sharp, but should be temporary,” He also said the Bank’s co-ordinated action on Budget day was designed to have “maximum impact”.