Marks & Spencer Group, the biggest retailer in the UK, referred that sharp spending cuts announced by the British government along with the rise in the VAT to 20.0% from 17.5% will adversely affect household spending, which makes the giant retailer that posted 2.8% rise in sales in the 13 weeks ending Jan. to say that outlook is cautious.

The cold weather also affected retail sales; where the British Retail Consortium (BRC) revealed that the harsh weather in December pushed sales at stores down by 0.3% from the 0.7% rise in November.

BRC added that UK growth in the fourth quarter will probably wane after the contraction in services and construction in December.