Retail sales growth slowed in July as fears over government spending cuts knocked consumer confidence, according to the British Retail Consortium (BRC).

Like-for-like sales rose 0.5% compared with July 2009, down from 1.2% in June. Sales also suffered since the end of the World Cup, with TV sales in particular declining.

Talk of public spending cuts is unsettling customers and they are concentrating on essentials. It's clear the recovery continues to need support. The Bank of England must resist pressure to increase interest rates too soon," said Stephen Robertson, Director General of the BRC.