Business groups, including the Federation of Small Business (FSB) and the British Chamber of Commerce (BCC) have called on the government and the Bank of England to adopt new monetary policies and ensure that yesterday's interest rate cuts are passed on in full.

"Interest rate cuts are yesterday's story and today's story is about access to money," said Stephen Alambritis of the FSB.

Many small business owners do not feel that the cutting of the interest rate - from 5% in October to 1% yesterday - has had a positive impact on their company.

There is a widespread feeling that the Bank of England and the government need to employ new monetary policies to help small firms access credit.

"With rates at very low levels already, the focus of UK monetary policy must now inevitably shift towards forceful quantitative and credit easing measures, with the aim of increasing the money supply," said David Kern of the BCC.