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Forecasts solid growth during the five weeks between 29 November and January 2 comes as a relief for retailers who feared that the holiday season would be washing photo: PA

The growth in sales will be just below the 3 2pc growths on the High Street last Christmas, according to a report from BDO, Accounting Office.

Forecasts solid growth during the five weeks between 29 November and January 2 comes as a relief for retailers who feared that the holiday season would be washing as shoppers hold because of concerns on household budgets.

BDO stated that although this Christmas far from bumper, it is expected to attract relatively heavy consumer spending.

"It may sound a cliché but always Christmas comes every year and consumers spend pretty much always more each year regardless of the State of the economy."Even in 2008 after the collapse of the Lehmans and financial collapse which saw the sales fall the proverbial cliffs in the fall, consumers still relatively strong past Christmas, "the company said."

BDO has added the consumption economy was warmer than many imaginary observers that it would be in 2010. " 2010 has felt like a bit of a strange war.In the year consumer has largely been sheltered from the effects of the slowdown due to low interest rates and thus ch?mage.Par retail spending levels constraints have worked much better than expected, "he said."

Shoppers same will aim to maintain their current levels of expenditure in 2011, despite a hardening of the landscape économique.BDO said that British shoppers will attempt to avoid the "phantom twin" higher taxes and reduced government spending push them to give up their way of life in 2011.

In the meantime, PricewaterhouseCoopers (PWC) research predicts that January 17 5pc to 20pc VAT increase will lead to a reduction in spending next year, but only by 0 2pc autour for consommateurs.John Hawksworth, Chief Economist, PWC, said that the increase is likely to reduce the volumes of sales of non-food products.

PWC estimates that the increase in VAT could increase global inflation by a little more than 1 percentage point to 2011 compared to what would have otherwise been the cas.M.Hawksworth said: "the first effects of the year would tend to fade with the passage of time...""After five years, the net effect of the increase in VAT on the level of output and employment would close to zero".

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