Debenhams boss says austerity plan is denting high street confidence

Michael Sharp says customers are cautious about spending despite seemingly buoyant economy

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.