Retail sales fell as Budget worries hit spending

Retail sales fell last month as shoppers held back on spending ahead of the Budget, according to official figures.

Sales volumes fell by 0.7% in October, the Office for National Statistics (ONS) said, with clothing stores having a "notably poor" month.

Speculation over which taxes might be increased ahead of last month's Budget has been blamed as a reason why households and businesses were more reluctant to make spending decisions.

While the drop was bigger than expected last month, the ONS said that wider trends showed sales had been sturdy.

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 might have led shoppers to delay buying warmer clothing.