Like-for-like sales in Scotland were 0.8 per cent down in May on those of a year ago when the retail sector nursed a 1.2 per cent downturn – its worst performance for nearly nine years.

Although TVs benefited from widespread World Cup promotions, other big-ticket housing-related items did not do so well with sales remaining difficult, according to the Scottish Retail Consortium’s (SRC’s) Retail Sales Monitor.

The figures for like-for-like sales were worse than for the UK as a whole (where they rose 0.8 per cent), although total sales in Scotland last month were 2.4 per cent higher than a year ago.

The downturn in like-for-like sales, the SRC said, denoted a sharper fall in consumer confidence in Scotland than in the UK as a whole, fuelled largely by a greater concern about public sector job cuts.

"Fears about public spending cuts are having a bigger effect in Scotland and consumer confidence has slipped further than elsewhere,” said SRC head of media Richard Dodd.

“Customers are nervous about the future and generally reluctant to spend when they don't have to.”

He added: "We need a Budget next week that doesn't further undermine this uncertain picture."

At accountancy firm KPMG, which helps compile the SRC’s figures, head of retail in Scotland David McCorquodale said: “The lack of a marked rise in any particular sector highlights that consumers are pegging back all spending, opting for necessities only, while doubt over the future remains.

“Clearly, the caution being expressed by the new coalition is being heard loud and clear on the Scottish high street.”

He pointed out that figures over three months, which showed an average drop in like-for-like sales of 0.6 per cent, enhanced the belief that Scotland was still struggling to emerge from the grips of the recession.

However, he added that the much talked-about possibility of a VAT rise “may lead to a brief honeymoon period for retailers as consumers look to buy items ahead of any increase”.