Interest rate rise costs £700 million a year

The Bank of England?s recent quarter-point rise in interest rates will add £700 million ($1.28 billion) a year to the costs of the UK?s 100 largest companies, according to a study by REL Consulting Group.

The increase in costs can be set against corporation tax, but still amounts to around £500 million a year or £2.5 billion since the Bank began raising rates. The primary cause of this cost rise is the £282 billion in debt owed by the UK?s top 100 companies.