If you were expecting borrowing to keep getting cheaper, Thursday’s announcement is worth a closer look. The rate itself did not move, but the tone around it has shifted noticeably, and for any scaffolding business planning to spend money over the next six months, that shift is the part that matters.

What the Bank decided

The Monetary Policy Committee voted six to three to hold. The three who disagreed, Chief Economist Huw Pill along with Megan Greene and Catherine Mann, wanted an immediate 0.25% rise to 4%. It is the same split as the July meeting.

Inflation reached 3.1% in August, its highest in five months, up from 2.9% in July and driven mainly by energy and fuel costs. The Bank has also revised its forecast, and now expects inflation to reach slightly over 4% in early 2027, having previously predicted a peak of 3.2% this year.

Governor Andrew Bailey said higher global energy costs have had a limited effect on UK prices and wages so far, but warned that the longer the volatility continues, the more likely it becomes that the Bank will need to raise rates to bring inflation back to its 2% target.

There was some better news on growth, with the Bank revising its estimate for the third quarter up to 0.4% from 0.1%. You can read the full decision and the meeting minutes on the Bank of England website.

What it means for borrowing

Because the rate has not moved, finance arranged today is priced on today’s conditions. What is worth understanding is that lenders tend to adjust in anticipation of where rates are heading, rather than waiting for the Bank to act first.

So if you have a materials restock, a vehicle purchase or an equipment upgrade pencilled in over the coming months, the cost of funding it may not be the same by the time you come to arrange it. That cuts both ways, and nobody can tell you with certainty which way it will go, but it is a reason to find out what your options look like now rather than assuming the picture will stay still.

Late tax bills could get more expensive

This next part often gets overlooked. HMRC charges late payment interest at the base rate plus 4%, which comes to 7.75% at the moment. That figure is not fixed. It tracks the base rate automatically, so if the Bank does move to 4% in November, late payment interest rises to 8% without any separate announcement.

Interest is only part of it. HMRC’s late payment penalties increased in 2025, and they stack up quickly

• Day 15 – A penalty of 3% of whatever you still owe.
• Day 31 – A further 3%, calculated on the balance outstanding at day 30.
• From day 31 onwards – A second penalty accruing daily at 10% a year until the bill is cleared.

On a £20,000 VAT bill, with none paid off, that is £600 at day 15 and another £600 at day 31. £1,200 in penalties before a single pound of interest is added on top.

This is why financing a tax bill can often work out better than letting it run late. A VAT loan or a corporation tax loan settles the bill with HMRC in full and on time, so those penalties and that interest never begin. You repay it over a few months instead. There is a cost to borrowing, of course, but it is a fixed cost you agree upfront rather than one that keeps climbing while you work out how to cover the bill.

One practical thing to know: HMRC does not update its rates on the same day the Bank moves. When the base rate was cut in December 2025, HMRC’s new rates took effect from 29th December for quarterly instalment payments and 9th January for everything else. If a rise comes in November, expect a similar gap of a couple of weeks.

Check how long your quotes stay valid

With inflation forecast to rise rather than settle, the costs behind a scaffolding job, such as materials, fuel and transport, are more likely to climb than fall over the coming months. If you price a job in September for work that starts in spring, you are absorbing whatever happens to those costs in between.

It is worth reviewing how long your quotes stay open, and whether longer jobs would benefit from a price review clause. A margin that looked healthy when you quoted can be a good deal thinner by the time the work actually begins.

Planning for the months ahead

None of this calls for a decision today. Your existing agreements are unchanged, and the Bank may well hold again in November.

What it does change is the assumption you plan against. If your budgeting for the next two quarters has been built on borrowing getting cheaper, that is the thing worth revisiting, whether it affects a purchase you had lined up, the terms you quote on, or simply how close you run to a tax deadline.

If you are considering funding for materials, equipment or vehicles, it is a sensible moment to find out what is available to you. Get a no-obligation quote on our scaffolding finance page, or give us a call to talk through your position. Quotes are often provided within 60 minutes, with decisions commonly within 24 hours.