UK retail sales rise but stores fear tax worries could hit festive period

Warm weather and interest rate cut lift sales in August, as food, drink and computers perform strongly

Record warm weather and a Bank of England interest rate cut lifted retail sales in August, according to the latest survey, but retailers fear that speculation about tax rises could weigh on consumers in the crucial pre-Christmas trading period.

Retail sales increased 3.1% year on year as consumer spending on food and drink rose, and sales of computers and related equipment performed well as parents readied children for the new school year.