The Bank of England reduced the base rate to 4.75 per cent, a move that has been acknowledged by many companies who are reliant on borrowing to stay afloat or expand.

However, Mark Barrie, head of debt advisory at Azets, a top 10 UK accountancy and advisory firm in Buckinghamshire and Berkshire, has expressed concerns about the limited financial relief this cut will provide.

Mr Barrie said: "Businesses don’t feel like dancing. The 0.25 per cent reduction to 4.75 per cent will be welcomed by a lot of businesses, many of whom are having to borrow money to either keep afloat or expand.

"But they know the cut is unlikely to bring any meaningful financial relief because of new cost pressures coming down the track."

Mr Barrie highlighted factors contributing to these cost pressures including the increase in employers' National Insurance Contributions (NICs) from next April, rising from the current 13.8 per cent to 15 per cent.

The earnings threshold at which employers start paying NICs will also drop from £9,100 to £5,000.

Impending rises in the National Living Wage for those aged 21 and over, and the National Minimum Wage for those under 21, will contribute to higher fixed costs.

He also noted that many companies, particularly in the retail, hospitality, and construction sectors, are still reeling from the effects of inflation, which reached a 41-year high of 11.1 per cent two years ago.