Business
Interest rate cut divides Bank committee as UK growth revised upward
BoE lowers rates to 4.25% amid trade uncertainty and mixed economic signals
THE BANK OF ENGLAND has cut interest rates from 4.5% to 4.25%—the lowest level since May 2023—as it attempts to strike a delicate balance between supporting a fragile recovery and guarding against persistent inflationary risks.
The decision, announced following the Monetary Policy Committee’s latest meeting, was far from unanimous. Out of the nine members, five voted for the 0.25% cut, two favoured a steeper reduction to 4%, and two wanted to keep rates on hold.
“This is an important moment for the UK economy,” said the BBC’s Economics Editor Faisal Islam, noting that rates are now down a full percentage point from their peak last summer. “Further cuts are expected but they will likely be gradual and cautious.”
Interest rates had climbed steadily from late 2021 in response to post-pandemic inflation, peaking at 5.25% in August 2023. Since then, falling inflation and a slowdown in consumer activity have prompted a shift toward easing.
The rate cut aims to make borrowing cheaper, thereby encouraging spending and investment. Mortgage-holders on tracker deals will see immediate savings—around £29 per month on average—but savers are likely to see a dip in returns.
In a fresh economic outlook, the Bank upgraded its growth forecast for 2025 to 1%—up from February’s 0.75% prediction—driven by stronger-than-expected performance in the first quarter. However, the longer-term picture is less rosy: UK growth in 2026 has been revised down to 1.25%, with global growth also forecast to slow due to international trade tensions.
The economic backdrop is being shaped in part by geopolitical uncertainty, including a fresh round of tariffs introduced by US President Donald Trump. Bank governor Andrew Bailey acknowledged the unpredictable global landscape but insisted the UK remains on a “gradual path” of rate easing.
Bailey also welcomed news of a pending UK-US tariff deal, saying it could help reduce uncertainty. However, he confirmed that the Bank had not yet been fully briefed on the agreement’s details.
Mixed reactions
Trade union Unite described the interest rate cut as “long overdue” but called for broader measures to improve living standards. General secretary Sharon Graham said: “This must include a joined-up industrial strategy to tackle energy profiteering, rebuild our industrial base and boost the economy.”
Meanwhile, Nigel Green, CEO of the financial advisory group deVere, warned that the Bank was moving too cautiously. “A half-point cut would have shown the Bank is ready to act decisively,” he said, arguing that the risks of hesitation outweigh the risks of bold action in the current climate.
Chancellor Rachel Reeves struck a more optimistic tone, calling the rate cut “welcome news” for homeowners and businesses, while Shadow Chancellor Mel Stride criticised Labour’s handling of the economy, claiming “interest rates remain high” because of government mismanagement.
Housing market impact
Nathan Emerson, CEO of Propertymark, said the rate cut would be a boost for the housing sector: “With the busier spring and summer months now here, this base rate reduction should attract more buyers and sellers and improve affordability.”
While today’s rate cut is not a silver bullet, it marks a further step in what may become a sustained effort to ease financial pressure on UK households and stimulate economic activity amid a shifting global landscape.
Business
Tenby sailing club works approved by national park
A CALL for works to Tenby’s listed building sailing club to improve energy efficiency for the community organisation has been given the go-ahead.
In an application to Pembrokeshire Coast National Park, Harrison Richards of Tenby Sailing Club sought permission for replacing 24 timber windows at the Grade-II-listed Tenby Sailing Club, Penniless Cove Hill, with new Accoya timber double-glazed units.
The application added: “An energy survey conducted by Dragon Energy Consultants highlighted the existing single glazing and rotten window frames as a significant contributor to the club’s energy consumption.
“Tenby Sailing Club is a community organisation which seeks to organise activities year-round but faces significant energy costs being housed in a historic building. The current windows are beyond repair, with cracked glazing, decay, water ingress, and poor energy efficiency.
“The two windows at balcony level are not included, as they were previously replaced and remain in good condition. All new units will replicate the existing profiles, dimensions, glazing patterns, and overall appearance, ensuring no visual change to the building’s character.
“The neighbouring three-storey harbour stores occupied by Tenby Sea Cadets have previously replaced the building’s windows with double glazing. This like-for-like replacement in appearance will improve durability, weather resistance, and thermal performance while preserving the special architectural and historic interest of the listed building.”
An officer report recommending approval said: “The Sailing Club was built as a warehouse c. 1825, abutting the C17 sluice. Originally wine stores, it was later used by the local fishermen for stores and is now the home to Tenby Sailing Club, established in 1936.”
It said no adverse comments to the proposals had been received.
It added: “The proposal is to replace the majority (24 total) of windows in painted timber, double-glazed with face-mounted glazing bars of traditional scale and profile. Whilst a modern practice of glazing, the proposal involves no loss of historic fabric, provides an obvious visual improvement and addresses concerns as to heating costs.”
It finished: “The scheme is considered to be in keeping with the character of the listed building, and its setting in terms of design and form. As such, the application can be supported subject to conditions.”
The application was conditionally approved by planners.
Business
Taxi fare shock in Milford Haven as drivers switch to meters
TAXI passengers in Milford Haven are facing a sudden jump in fares, as drivers increasingly switch on their meters and charge full council-approved rates.
One Herald reader said a short return trip from Milford Haven to Neyland cost £30 — around double what he expected to pay.
But drivers insist the prices are not new — they are simply the official tariff now being applied.
Under Pembrokeshire County Council rules, the standard daytime fare starts at £4 for the first mile (£5 after 6pm), rising by around £3 per mile thereafter. Waiting time is also charged, meaning even short return journeys can quickly add up.
Higher rates apply in the evenings, at weekends and on bank holidays.
End of the £3 taxi
Milford Haven has long been known for cheap taxis, with short in-town journeys often costing as little as £3 — far below official rates.
That was down to competition, older vehicles, and the need to keep prices low in a town where many rely on affordable transport.
Drivers say those days are now over.
One local driver told The Herald: “People got used to cheap fares, but that was never the real price. Now we have to use the meter or we’re losing money.”
Fuel costs biting
Most taxis run on diesel, now around 170p per litre locally. For drivers covering long distances each day, the increase has hit hard.
Global tensions in the Middle East have pushed up oil prices, feeding directly into higher fuel costs in the UK.
With fare increases requiring a lengthy council process, many drivers say they have no option but to charge the full tariff.
Vulnerable hit hardest
The change is being felt most by those who rely on taxis the most.
Elderly residents, people on low incomes and those without access to a car are now facing higher everyday travel costs.
There has been no recent increase in Pembrokeshire’s official taxi fares, which have remained broadly unchanged since 2022.
The difference is simple: drivers are now charging them.
As one put it: “We’re not putting prices up — we’re just finally charging what we’re supposed to be charging.”

Business
Cardiff Airport expects Easter passenger surge as demand rises
CARDIFF AIRPORT is preparing for a busy Easter getaway, with more than 46,000 passengers expected to travel through the airport over the holiday period.
The figure represents an 18% increase compared to the same period last year, reflecting growing demand for both sunshine destinations and European city breaks.
The busiest routes this Easter are set to be Alicante, Dublin and Málaga, with flights operated by airlines including Ryanair, Vueling and TUI Airways.
Travellers heading for warmer weather can also take advantage of direct flights to the Canary Islands, including Tenerife, Lanzarote, Gran Canaria and Fuerteventura, alongside popular destinations such as Faro and Palma.
The airport says the increase builds on a strong start to 2026, with passenger numbers continuing to rise.
Chief executive Jon Bridge said the airport is approaching the one million passenger mark and expects the summer season to be its busiest since the pandemic.
He said: “It’s been an incredibly positive start to the year, and we’re looking forward to welcoming more passengers over the Easter period.
“Our teams are working hard to ensure travellers can start their holidays smoothly.”
Passengers travelling over Easter are being advised to allow extra time for their journey and check with airlines for the latest updates.
A total of 46,158 passengers are expected to pass through the airport between March 27 and April 12, with arrivals and departures almost evenly split.
Cardiff Airport said it continues to expand its range of destinations, including the addition of a direct service to Toronto, as it looks to strengthen its role in connecting Wales to international travel.
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