Retail sales in the UK declined by 0.5% in April, the first decline since January, according to the Office for National Statistics.

This decline is a surprise and suggests that concerns over tax rises and the government's budget cuts are affecting customers.

Non-food stores were the worst hit in August, with sales down 0.7%, driven largely by household goods stores.

"Retail sales fell last month, despite widespread expectation that there would be a small increase. These figures support the view that although GDP will remain in positive territory in the third quarter of the year, there will be a significant slowdown in the rate of growth," said David Kern, chief economist at the British Chambers of Commerce.

"While weaker than expected, the figures are not entirely surprising given the squeeze on people's disposable incomes and the pressures facing consumers as well as businesses. These pressures will inevitably intensify as the government implements its deficit cutting programme, highlighting the need to rebalance the economy towards exports."