Retail sales fall despite World Cup and hot weather boosting alcohol and drinks trade – business live

Rolling coverage of the latest events in global financial markets, the economy and major corporate moves

Returning briefly to July’s retail sales figures, and there is some disagreement among the experts over whether the World Cup was good or bad for retailers.

Of course there is no doubt that it was a big boost for publicans, who enjoyed the best football-related uplift of recent years, of £150m.

Retail was not a World Cup winner, with many opting to cheer on England from the pub and prioritising their summer getaway, boosting hospitality and travel rather than retail sales.”

For half the month England were in the knockout stages of the World Cup. In a football-mad nation, that always helps to support sales, particularly for retailers of food and drink and clothing.”

Stronger growth in the first half of the year contributed to strong tax receipts in July. But it has failed to deliver a wider public finances windfall as the economic impact of conflict in the Middle East has taken its toll on borrowing costs.

The Chancellor’s margin against his fiscal rules is now razor thin, with the healthy headroom of around £24 billion last spring likely to have fallen below £8bn. He should use his first Budget to put the public finances on a firmer footing and ensure that any new policy announcements are fully funded.