The latest cut in interest rates will do nothing to help struggling Kent businesses, an accountancy firm said today.

The Bank of England’s monetary policy committee has cut interest rates to five per cent from 5.25 per cent.

This is the third cut since early December.

Nationwide Building Society will decrease its base mortgage rate by 25 per cent to 6.49 per cent from May 1. Other building societies are expected to follow.

But Gravesend-based Mark West of Berley Chartered Accountants said banks would not pass on benefits to businesses. He said: “Businesses in Kent are struggling to avoid liquidation, and company directors are facing bankruptcy as banks tighten their grip on business loans.

“The credit squeeze has given lenders the opportunity to compel small and medium enterprises and specifically the directors, to provide personal guarantees to secure the corporate borrowings of their business, clearly at a time they need the most help.

“This rate cut will not change the banks’ stance one iota. They are effectively using this situation to squeeze companies.”

Berley has set up a support line for companies facing difficulties. The number is 0800 458 1894.