The FTSE slipped 0.55 percent by the close, after a survey by the CBI (Confederation of British Industry) and PwC out Tuesday revealed deteriorating business sentiment in the U.K. after the country's vote to leave the European Union.
France's CAC 40 also ended in the red, off 0.48 percent, while the German DAX only ended 0.07 percent down.
Food and beverages stocks were Tuesday's worst performers, with the sector tumbling 1.37 percent by the close. Brewing powerhouse Anheuser-Busch InBev (AB InBev) announced its Arlode packaging line would be online by October, with expansions in the business set to create 70 additional full-time jobs. Its shares fell 1.83 percent at the end of trade.
Elsewhere, Marks & Spencer reported a 1.2 percent fall in household and clothing sales for the three months to July 1, causing the stock hit the bottom of the benchmark during trade, however it pared some losses, ending 4.69 percent down. Chief Executive Steve Rowe said the results were in line with expectations.
Media stocks ended 0.79 percent down. Pearson announced plans to raise £776 million ($999 million) by selling a 22 percent stake in Penguin Random House. Despite some early gains, its shares extended losses to finish over 5 percent lower.
Meanwhile, basic resources and autos ended higher, bucking the weaker trend seen across other sectors. Miners, Anglo American, Glencore and Boliden were some of the top performers, while Fiat and Daimler boosted to autos sector.