The British economy has experienced a decline in business output for the first time in more than a year. This decline is seen as a worrisome change in the economic landscape.

According to a recent survey, the tax increases introduced in the new government's inaugural budget are negatively affecting hiring and investment strategies in various sectors. This presents a significant challenge for Prime Minister Keir Starmer, who has been advocating for economic growth.

The decline in output raises concerns about the effectiveness of the government's fiscal policies and their impact on the broader economy.