Is Rachel Reeves damaging the High Street’s recovery?

The former boss of Sainsbury’s, Justin King, warned on the Today programme this morning that Rachel Reeves has damaged the economy through her constant warnings of tax rises to come in October’s budget, causing anxious shoppers to draw in their horns until the big day. But if shoppers really are holding off purchases for fear that the Chancellor will raid their savings or hit them with tax rises there is scant sign of it in the Office for National Statistics’ (ONS) retail sales figures for August. They show that sales volumes increased by 1.0 per cent over the course of the month. July’s figures were also revised upwards from a 0.5 per cent increase to a 0.7 per cent increase. Clothing retailers had a particularly good month, with sales up 2.9 per cent; food store sales followed with a rise of 1.8 per cent.

Retail sales figures can be very volatile, but the longer-term statistics are looking good, too.