However, Tory MPs rallied behind the chancellor and Andrew Tyrie, chair of the Treasury select committee, said the downgrade was of "limited value" given the ratings agencies "dismal record" of corporate and economic forecasting in the past.

BBC: UK Politics

Verdict Research, a retail consultancy, is forecasting a 4.2% decline in the value of retail spending, excluding food and internet sales, in 2009.

ECONOMIST: The high street will stay in trouble