Retailers have suffered the biggest fall in sales for more than 40 years as the crisis gripping Britain’s high streets intensifies.

In a bleak update, the CBI said 64 per cent of firms reported that sales in the past three months were lower than in the same period last year, while just 8 per cent said they were up.

The balance - or difference between the two numbers - of minus 56 was the widest since records began in 1983.

The figures highlight yet another failure of Keir Starmer and Rachel Reeves, who pledged to ‘reinvigorate the High Street’ in the Labour manifesto ahead of the last election.

Instead, firms have been left reeling by the Chancellor’s national insurance tax raid, inflation-busting hikes in the minimum wage and botched business rates reforms.

With Andy Burnham set to take over as Prime Minister and sack Reeves as Chancellor, the CBI called for a change of tack under the new administration.

Martin Sartorius, lead economist at the CBI, said: ‘Retailers reported a gloomy start to the summer, with sales disappointing amid depressed consumer sentiment and rising cost pressures.

‘Businesses need clarity and stability at a time when confidence remains fragile. As government transitions to a new Prime Minister, the focus must remain on creating the conditions for growth by tackling the cost of doing business.

‘For retailers and wholesalers, this includes delivering meaningful business rates reform, ensuring the Employment Rights Act avoids diminishing labour market flexibility, and taking further steps to address uncompetitive energy costs.’

A separate CBI survey on Tuesday showed British manufacturing orders deteriorated this month at the fastest rate since September 2020.

Signs of the growing crisis on the High Street came as the head of the British Chambers of Commerce urged the next Prime Minister not to unleash a further wave of tax hikes on struggling businesses.

Speaking at the group’s annual conference, Shevaun Haviland said: ‘If we want to see growth, our political leaders must reduce the burdens on business, and just in case anyone is tempted, let me be clear. Taxing business more will be a road to ruin, the quickest way to destroy the fragile confidence that we have left.’