UK business finance news roundup: boe rate cut, confidence dips and fund-manager consultation

Bank rate trimmed amid trade optimism

On 8 May 2025 the Bank of England reduced its base rate by 25 basis points to 4.25%, the fourth cut since last August, in a narrow 5–4 vote. Governor Andrew Bailey pointed to easing inflation pressures and slowing global growth driven by U.S. tariffs, while expressing cautious optimism about a newly struck UK–US trade agreement. The move is already feeding through to cheaper mortgage offers from building societies, though the MPC remains divided on the pace of future cuts. Source: Reuters.

Business confidence dips to three-month low

Despite resilient first-quarter performance, the Lloyds Bank Business Barometer showed UK firms’ confidence falling 10 points in April to 39 percent—the weakest reading since January. Higher employment costs, lingering trade tensions and broader economic uncertainty weighed on sentiment, even as confidence remains above its long-run average of 29 percent. Source: Lloyd.

Treasury and FCA consult on fund-manager regime

On 7 April HM Treasury launched a consultation to streamline the regulatory framework for Alternative Investment Fund Managers (AIFMs), aiming to spur private-capital growth through greater proportionality and simpler reporting. Simultaneously, the Financial Conduct Authority issued a Call for Input on its intended approach to these reforms. Stakeholders have until mid-summer to comment on thresholds, reporting requirements and passporting arrangements.

Keep an eye on these developments—whether you’re reviewing borrowing costs, managing balance-sheet impact, or planning fund-manager engagements, the months ahead promise both opportunities and challenges.

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