Britain's retailers have attacked the Bank of England's monetary policy committee after higher interest rates combined with dismal weather to mean shops suffered a "washout" in August.

Activity fell last month to its lowest level since last December, prompting Kevin Hawkins, the director general of the British Retail Consortium, to say: "These figures should sound warning bells even in the usually deaf ears of the MPC that the consumer economy is increasingly fragile in the crucial run-up to Christmas and cannot sustain another rise in interest rates."

Meanwhile, a Populus poll for the Times, suggests that roughly two fifths of voters  have cut back on new spending and borrowing.

Women (43 per cent) are more likely than men (34 per cent) to say they have cut back as a result of recent interest rate rises.