Retail sales fell in October as Budget fears hit spending

Sales volumes were up 0.8% in the August to October period when compared with the previous three months.

“When we look at the wider trend, retail sales are increasing across the three-month and annual periods, although they remain below pre-pandemic levels,” said ONS senior statistician Hannah Finselbach.

She said October’s fall “was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget”.

Sales at clothing stores were down 3.1% in October, with separate surveys having suggested that milder weather last month meant shoppers delayed buying warmer clothing.

The retail sales figures are the latest in a run of disappointing data on the economy.

Earlier this week, data showed higher-than-expected government borrowing, while the latest inflation figures showed prices rising faster than expected.

And last week, figures indicated that the economy barely grew between July and September.

Retailers have been among the most vocal of the businesses complaining about tax rises announced in last month’s Budget.

On Tuesday, many of the UK’s biggest chains – including Tesco, John Lewis and Marks & Spencer – wrote to Chancellor Rachel Reeves to say that job losses in the sector were “inevitable” and prices would rise because of the tax rises and other increasing costs.