Uncertainty about the economic situation remains with almost half of the companies in London expecting a double-dip recession.

There are more London firms predicting a double-dip recession (47%) than those expecting a return to sustained economic growth (29%), according to the latest survey by the London Chamber of Commerce and Industry (LCCI) and pollsters ComRes.

Of those remaining businesses, 13% expect the UK economy to remain steady while a further 11% think it will in fact decline further.

Colin Stanbridge, chief executive of the LCCI said: "Businesses in the capital are bracing themselves for a return to recession or at the very best weak economic growth. The Government needs to take heed and deal with the UK's public debt to restore confidence in UK markets and keep businesses free from the burden of higher taxes and onerous regulation."