'Christmas shoppers nervous'

Shoppers plan to spend less on Christmas this year, with London expected to suffer as people fearful of terrorist attacks stay away.

A survey by debit card company Switch shows overall spending will drop for the first time in five years. Average spending will be £826, down £7 on 2000.

While 77 per cent of those questioned said they planned to continue shopping as normal, 12 per cent said they would cut back.

Despite Britain's involvement in the war against terrorism, 22 per cent said the international situation would not affect their spending habits. Five per cent said they would spend more.

However, nearly a third (29 per cent) of the 1,009 people questioned said they were nervous about visiting big cities like London for their annual Christmas shopping spree.

Recent events in Afghanistan seem to have had the biggest impact on people aged between 16 and 24, with 38 per cent saying they would be worried about visiting cities during the festive season.

The seven per cent who plan to change where they will shop for Christmas said they would instead visit local shops or use the internet and mail order.

Nigel Turner, head of marketing and strategy at Switch, said: "Despite the international situation, consumer confidence seems to be stable in Britain this Christmas. This is comforting news for most sectors of the economy, although the travel industry is expected to be adversely affected.

"Our research findings show that shoppers plan to be prudent this Christmas. Nearly 70 per cent of the 1,009 people say they plan to draw on their savings, with only five per cent expecting to rely on credit or a loan. This should help the majority of us to avoid a post-Christmas financial hangover."

Shoppers in the Midlands will spend the least, on average £766, while those in the South will spend £782.

The biggest bill will be in the North - an average spend of £919. The travel industry is expected to suffer as people stay at home rather than fly. Nine per cent fewer people plan to spend Christmas abroad compared with 2000.