A slump in business confidence must be tackled by Andy Burnham after activity fell to its lowest level since Covid – with firms ‘trapped in survival mode’.
A report from accountants BDO showed business activity dropped sharply last month after a brief rebound earlier this year ‘ran out of steam’.
BDO’s output index fell from 94.8 in May to 91.53 in June – its lowest reading since February 2021, a Covid lockdown period.
It is the latest evidence that Labour’s tax hikes, higher wages and red tape, together with the impact of the Iran war, are weighing on the economy.
Until confidence starts to recover, the jobs picture is ‘likely to remain subdued’, the report added.
