MANUFACTURERS are continuing to see the cost of borrowing rise and no improvement in access to finance, despite interest rates falling to a historically low level and efforts to free up the liquidity in the banking system, research has revealed.

EEF, the manufacturers’ organisation, highlighted the importance of the Bank of England continuing with its quantitative easing programme to prevent higher borrowing costs from weakening a potential economic recovery. The survey revealed 45 per cent of firms reported a significant or moderate increase in the cost of finance in the past two months, up from just over 37 per cent in the first quarter.

Over the same period, the level of firms reporting a reduction in the availability of new lines of borrowing fell from 49 per cent to 42 per cent, but only just over four per cent of companies reported an improvement.

PENSION ANGER: The joint leader of the country’s biggest trade union yesterday accused employers of using the recession as an excuse to permanently cut pensions. Derek Simpson, of Unite, said the union would back workers if they decided to stand up to firms which were “hell bent” on eroding pension benefits. Mr Simpson said he was outraged by a series of announcements in recent days, including a move by Barclays to shut its final salary pension scheme to further contributions from existing members. BP told staff this week that new recruits would not be able to join its final salary pension scheme. Mr Simpson said: “It’s totally unacceptable for employers with good longterm prospects to use the recession as an excuse to cut pensions.”

SALES RISE: Supermarket Morrisons yesterday said it attracted 500,000 new customers each week to its stores in the first quarter as like-for-like sales rose 7.3 per cent. Morrisons’ sales increase in the 13 weeks to May 3, which excludes fuel but includes VAT, was broadly in line with the 7.9 per cent rise in annual sales reported in March, despite easing food price inflation.

WATER MEET: Opportunities in the international environment and water sectors will be highlighted at a UK Trade and Investment Yorkshire event on June 18, at the Royal York Hotel, in York, between 9am and 2pm. To book a session with a trade officer from China, India, Bulgaria and Romania, Egypt, Malaysia and Singapore, Poland, Philippines and Turkey, register at biznet121.co.uk