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The UK has benefited from the eurozone crisis as many people decide to spend their money in UK shops, according to a survey.

Britain’s retailers are braced for a poor Christmas and a second consecutive year of a decline in spending on household essentials.

The British Retail Consortium (BRC) said fears about jobs and the global economy were part of the “perfect storm” for Christmas.

However, it said more consumers could turn to internet shopping.

But it warned that a drop in petrol prices could also push up bills.

Margaret McCullough, head of forecasting at the BRC, said the survey of retailers and forecast spending would be in the annual range of £1.5bn to £1.7bn – a 2.5% drop on last year.

The BRC said the eurozone crisis, especially in Greece, would also put pressure on retailers.

The survey showed people were more concerned about losing their jobs than getting the deals in Britain’s high street.

BBC News Online’s business editor, Laura Kuenssberg, said that retailers had lost confidence in a global economy that was seeing growing trade tensions between the United States and China.

They were looking for safety in numbers, which they see from living in the European Union, she said.

But, on the bright side for Britons, retailers had not seen a Brexit-style fall in the value of the pound, which has pushed down the price of imported goods, such as UK TV sets and cars.

The survey showed that the majority of stores in every region in the UK planned to keep prices the same as last year, although the highest rises were seen in the north-west, which also saw the highest decline in demand.

‘Chilly sales’

Total UK household spending on Christmas gifts and presents was down 3.6% on last year, according to market analysts Mintel. However, the rise in petrol prices were likely to push up other costs for families.

The figures came as fuel prices rose by about 2.8% since last October.

The British Retail Consortium said sales of popular items such as cards, chocolates and champagne would be down by about 3.5% and shoppers were also likely to put off

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