29 July 2026
The North East Shadow MPC, a group of leading businesspeople from across the region, met to discuss their thoughts on the Bank of England-set base interest rate ahead of the Monetary Policy Committee’s meeting.
The two recurring themes were uncertainty and caution leading all but one member to vote to hold rates despite several actually wanting a cut.
The Shadow MPC is a partnership between Newsquest, Clive Owen and Recognition PR.
Lee Watson, partner at Clive Owen, said: “I’m on the fence with it. I think we do need a cut, but I just wonder if now is the right time because it could then spike inflation again. I think that’s the last thing we want to do.”
Donna James, research director at Populus Select, said: “I would love to vote to lower the rate as growth has stalled and the labour market continues to be lacklustre with recruitment slow. However, the re-escalation of hostilities in Iran resulting in continued high oil prices which puts inflationary pressure throughout the economy means that ‘sticking’ is the best option.”
David Coates, managing director of Newsquest North, said: “I think there’s too much uncertainty and therefore adding to that by cutting rates is just a bit too ambitious at the minute and inflation is still ahead of where it needs to be. If you look at the bond markets, the bond prices have come down and rates have gone up. So it’s a worry. I’m worried about inflation.”
Catriona Lingwood, chief executive of Constructing Excellence North East, was the lone voice for cutting the rate, said: “I don’t think it should be a dramatic reduction, but I think we do need to have a planned reduction in rates going forward. I think it would give more confidence and it would increase growth with regard to our sector.”
Tim Bailey, head of practice at Xsite Architecture LLP said: “At the moment, I don’t think there’s enough intel to make a change of any sort of size. I think we need more government announcements to be able to judge the way that the internal economy is going to work and a few more months of progression on the international stage before making a move.”
Martyn Pullin, partner at FRP Advisory said: “I’m concerned about the impact on the global economy from the Strait of Hormuz, which just seems to be going on and on and on, affecting food prices for hard stretch households and fuel prices.”
Gavin Cordwell-Smith, chief executive of Hellens Group, said: “It was a 50-50 decision for me. My heart says I’d love to have a cut, but my head says really, unfortunately, we’ve still got inflationary pressures and inflation is due to increase later this year. I’d love to be able to say cut because we do need a cut, but I just think it’s very difficult in the current circumstances.”
Martyn Tennant, head of corporate team at Swinburne Maddison, said: “Again, just for consistency and certainty until we are in a better position to see the impact of the new government and the new Prime Minister I would stick with the decision to hold.”
Graham Robb, senior partner at Recognition PR said: “I’m of the view that we need to keep our foot on the throat of inflation. We need to make sure we throttle inflation, kill it off because it’s not ever hit the government target and it has to be dealt with seriously. We don’t want to kill off the economy so I wouldn’t put interest rates up and I would hold fast on rates as they are until inflation takes a decisive turn down. And I’m talking about getting to 2%.”
Nick Pope, managing director of Premier Tech Water and Environment, said: “Really echoing what everybody said. Also, I’m a bit concerned that in the second-half of the year, inflation is going to rise due to the external factors globally. If we can hold throughout the rest of this year, I think that will be a good result.”
