The boss of Debenhams has warned that the government’s plans for a further round of deep spending cuts are weighing on consumer confidence despite the apparent health of the economy. Michael Sharp, the retailer’s chief executive, said that although customers are starting to feel better off they are cautious about spending because of the government’s gloomy tone and its decision to stick with plans for £12bn of welfare cuts. Announcing the department store group’s recent trading figures, he said: “When I sit down and talk to customers, they recognise that energy is cheaper and it’s cheaper to fill the car and their weekly budget for food is going further, which is great bearing in mind that not long ago there was 5% inflation [for food]. “The government has done quite a good job of positioning itself on the need for further austerity. Everyone is very aware of the £12bn cuts that are talked about. They see the positive [economic] indicators but … they pick up messages that say things are going to remain tough for a while, and that influences their feelings about their own financial situation.” Some economists, including the former Bank of England rate setter David Blanchflower, have… Read full this story
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