UK businesses put the brakes on lending

Higher borrowing costs and uncertainty about the UK’s economic future are stirring up the waters of business lending. Throughout 2023, the Bank of England’s agents reported that businesses were not as keen to take out new loans as they had been in previous years. Pricier borrowing and a shaky economic outlook were thought to be the main culprits to the decline in new loans. Interest rates on new loans for small and medium-sized enterprises (SMEs) hit record highs in 2023, according to Bank of England data.