London’s businesses are being crimped by Brits cutting spending in response to the cost of living squeeze, reveals a survey released today.
Some one in four of the capital’s firms have suffered income hits over the last three months, up from a fifth in the first quarter of this year, according to the London Chamber of Commerce and Industry (LCCI).
Inflation is projected to deal the worst blow to household finances since the 1950s this year, sparking experts to warn the UK economy is headed for slow burning recession.
Living costs are expected to climb over 11 per cent in October, suggesting firms’ revenues will come under worse pressure in the coming months.
Over a quarter of London businesses think profits will drop in the next quarter, while around a third think they will improve.
Richard Burge, chief executive of the LCCI, said: “It is imperative that the government alleviates the cost of doing business crisis by introducing tangible support measures such as halting corporate income tax, reducing business rates and reversing the planned rise to national insurance.”