UK retailers braced for tough Christmas as shoppers feel squeeze

Two surveys show extent of cost of living crisis as businesses enter what should be most profitable period

Britain's retailers are bracing themselves for a tough Christmas trading period as hard-pressed consumers react to a worsening cost of living crisis by cutting back on spending.

With the most profitable period of the year for shops and online outlets approaching, two surveys out on Tuesday underlined the extent of the squeeze on household budgets caused by the UK's double-digit inflation rate.