UK companies have paid off more bank loans this year than they have taken out for the first time since records began, according to data released by the Bank of England.

Businesses are also paying back their bank loans at a record rate, with £3.6bn paid back by non-financial firms in June alone.

"The fact that firms are paying off debt is an indication that they are less able to find finance to roll the debt over," said Peter Dixon of Commerzbank.