Scots rein in spending amid fears over public-sector cuts

RETAILERS north of the Border have been hit hard by worries over public-sector cuts as Scottish shoppers tightened their belts for a second month.

Spending on the Scottish high street in May fell faster than in the UK as a whole, according to the Scottish Retail Consortium (SRC).

Sales at stores which have been open for more than a year dropped by 0.8 per cent compared with the same period in 2009 – while the value of food products sold slumped furthest, falling 1.6 per cent as consumers opted for cheaper ranges.

The drop follows a 2 per cent fall in April, when the figures were skewed by the timing of the Easter break.

Last month, total sales – including stores opened within the last 12 months – grew by 2.4 per cent, a bigger increase than in April, but still slower than in the rest of the UK.

Retail experts said fears over job losses in the public sector had affected shoppers more strongly in Scotland than elsewhere in Britain.

"Fears about public-spending cuts are having a bigger effect in Scotland and consumer confidence has slipped further than elsewhere," said Richard Dodd, spokesman for the SRC.