Panel urges no change in interest rates

Members of the Yorkshire Shadow MPC, a group of influential business leaders who meet to discuss the national economic picture, agreed there was little point in the Bank potentially denting confidence by raising rates when such a move would have little impact on Britain’s soaring inflation.

Panel member Andrew McCutcheon, of the Federation of Small Businesses, said: “I don’t see we’ve got cause for raising the rates now – I think it’s going to be a long time before we can be comfortable with a significant rise.

“My view is the Government should cut back on some of the tax rises that are due to come in.”

The only dissenter was Margaret Wood, regional chairman of the Institute of Directors, who called for a “slight raise” in rates.