Hangover from 'Awful April' still stifling growth of firms

BUSINESSES in London have seen output decline for the second consecutive month — yet there is optimism that the capital’s economy will rebound.

- By Mauricio Alencar

Chancellor Rachel Reeves’s tax hikes and a rise in energy bills contributed to a decline in production in May after what was dubbed “Awful April” took effect, firms reported in NatWest’s growth tracker.

Research suggests businesses in the UK’s most productive region have not shrugged off the costs of the Government's policies, with the hangover still impacting firms and stifling growth in London.

NatWest believes falling demand for goods and services kept the capital’s business activity index under the 50-figure benchmark, which signals output has not risen or fallen month-on-month.