Consumers can cope, says M&S boss

"I believe that consumers want clarity and what the Chancellor of the Exchequer did last week was give consumers absolute clarity about what to expect," he told reporters on the sidelines of the World Retail Congress when asked about last week's package of cuts to rein in Government borrowing.

"With clarity comes, I think, more confidence," he said.

He brushed off recent data showing a drop in retail sales and consumer confidence, saying this was partly due to uncertainty over the Government Spending Review and to less favourable weather for retailers than last year.

He said the key Christmas trading period would be "hard fought, but ... OK" and retail sales would grow next year, although trading conditions would not be easy.

"I think it will be exactly what we have seen – the weak will get weaker and the strong will get strong-er.

"It has been a reasonably good retail year. If it is as good next year as this year we will all be very, very happy," he said.

Unlike previous economic downturns, the world was being helped by the strength of emerging markets, he said.

"Ten or 15 years ago, if the world went into recession we all waited for America to start up again.

"That is not the case this time."