19 March 2021

A new guide has been launched to help retailers understand the potential impact of the end of LIBOR*, a benchmark that banks and lenders use to calculate the interest rate for financial products.

As LIBOR is the most common interest rate benchmark in the UK, the transition to alternative rates will impact a significant proportion of businesses. It can be found in commercial loans, leasing and servicing contracts, commercial contracts and company pension schemes,

This change will affect both new and existing borrowing. From 1 April this year new sterling loans will no longer be based on LIBOR, and any existing contracts with LIBOR exposure will need to be changed before 31 December 2021.

The introductory guide, created by a group of industry trade bodies including UK Finance and the Confederation of British Industry (CBI) has been designed to help businesses understand what the change in benchmark interest rates means, if it affects them, what they could do to prepare and where they can go for more information.

Additional help and guidance