M&S reports strong festive sales but says tax rises will lead to cost cuts

Sales at food halls rise 8.9% over Christmas, with 23 December its biggest-ever day of food trading

Marks & Spencer has hailed a good Christmas" with strong sales of food but warned it would have to find new ways of to cut costs in the face of the government's tax increases.

The UK retailer said sales at established food halls rose 8.9%, making its the top-performing high street grocer over Christmas, according to the analysts Kantar. Equivalent clothing, home and beauty product sales grew by 1.9% in the 13 weeks to 28 December, even as the clothing market fell 2% before Christmas.