Struggling retailers today demanded tax cuts in a desperate plea to the Government in the face of the looming recession.

The British Retail Consortium urged Alistair Darling to intervene to help stores through the economic storm. It called on the Chancellor to cut business taxes and help households deal with rising bills.

BRC director general Stephen Robertson said: "At this difficult time for retailers and family budgets it's vital that the Government acts to restore economic stability.

"The BRC is setting out a coherent plan designed to reduce price pressures and restore consumer confidence."

In a letter ahead of the autumn Pre-Budget Report, the BRC urged the Chancellor to reinstate business tax relief on empty properties, which was abolished in April.

It also asked for measures to revive spending including zero tax for environmentally friendly goods.

The demands came as Government statisticians were given another kicking in the City after figures showed an unexpected jump in sales on the High Street last month.

The Office for National Statistics said sales rose 0.8% in July, confounding analyst forecasts of a 0.3% fall, as shoppers flocked to lowcost stores such as Aldi and Lidl.

The figures were far stronger than those published by the likes of the British Chambers of Commerce and CBI and were met with scepticism in the City, where critics argue the volatile nature of the data shows they are deeply flawed.

Last month's rise followed record sales volumes in May and the worst decline ever in June.

Alan Clarke of BNP Paribas said: "This number warrants caution in its interpretation."

Vicky Redwood of Capital Economics said: "July's robust rise in retail sales should be taken with a pinch of salt, given that the official sales data have been unusually volatile over the past few months. We suspect that the official figures are still giving an overly upbeat picture."