1% rate rise 'risk' to small firms

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Bank of England
Bank of England

A rise in interest rates to 1.5% is likely to throw 218,000 small businesses into serious financial trouble, a survey said.

The Begbies Traynor Red Flag Alert, which looks at the financial health of UK companies, said a 1% rise in the base rate by the Bank of England would hit thousands of small firms because many of these businesses still carry heavy debts taken on during the recession.