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    Fears for the future of the British economy appear to be growing among consumers around the country, it has emerged.

    The consumer confidence survey of the British Retail Consortium (BRC) has recorded an unprecedented low for May as people across the country become increasingly downbeat about their own money problems and the economic environment.

    BRC analysts have noted that both high interest rates and rising inflation are worries for UK consumers and that they are "being hit with both at present".

    "It’s clear we are seeing the effects of customers’ concerns about the future and about their own levels of debt," said the BRC’s director general Stephen Robertson.

    According to the latest research, around 22 per cent of people have no spare cash at all and most are cutting back on non-essential purchases.

    Last week, a report from MoneyExpert indicated that 38 per cent of British borrowers are worried about whether or not they will be able to resolve their debt problems.

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