Business leaders in Birmingham and Solihull applaud the alternative measures taken by the government to boost the UK's finances in light of today's announcement that interest rates and quantitative easing measures are frozen.

Katie Teasdale, Head of Policy at Birmingham Chamber of Commerce and Industry (BCI) said businesses welcome the Government's Growth Plan announced yesterday. She said: "Lack of bank lending and unemployment remain serious concerns and the government needed to look at alternative measures to stimulate the economy.  Developing high-tech industries and creating higher-skilled jobs in the West Midlands are what is needed. But what remains to be seen is how this will work on the ground.

"A survey of Birmingham Chamber's members showed that 72% of respondents felt that the Government's economic projections in the recent pre-budget Report were overly optimistic. There is concern that the UK lacks a credible plan for managing the deficit which has the potential to seriously undermine competition. Business and the markets need to understand how savings will be made. 

"Lord Mandelson is of course right that UK plc wants, needs and must have a 'credible Deficit Reduction Plan' and 'an equally credible Growth Plan'. But there are fears across the business community that all these strategies will only amount to more words and no real action when we need it most - especially as the General Election approaches and the Government's ability to act decisively is limited."

The Monetary Policy Committee (MPC) has announced that it is keeping borrowing costs at 0.5% and the money supply is unchanged at £200 billion.