Business investment in Britain declined 10.4% in the second quarter of the year compared to the first three months - the steepest drop since 1985, according to data released by the Office for National Statistics (ONS).

The amount spent by businesses on a range of investments, from new computers to building works, fell to £29.8bn in the second quarter of the year and 18.4% lower than the same period last year.

Companies have had to cut back on spending to cope with a sharp downturn in demand and difficulties in accessing funds.