Keeping interest rates stable while the government is implementing its tough deficit cutting measures is good news say West Midlands business leaders but Birmingham Chamber of Commerce Group (BCCG) said it is vital that the government pushes forward initiatives which will stimulate economic growth.

Michael Ward president of BCCG said a further £50bn increase in the quantitative easing programme, to bring it up to £325bn will help but other initiatives such as extending the small business rate relief for a further six months and deferring the increase in fuel to 1 August next year are also imperative.

He said: "A new relief announced that will extend the Enterprise Investment Scheme to small, new business start-ups which will be called the Seed Enterprise Investment Scheme will also help by encouraging entrepreneurship, creating jobs and stimulating growth.

"It's not just about keeping interest rates low," Mr. Ward added. "Alone, it will not achieve the UK's full potential to support growth."