News that Woolworths and MFI were last night set to appoint administrators is a sign of the mounting carnage on UK high streets. Sadly, the government’s 2.5 percentage points cut in value added tax will do little to make Christmas any merrier. Far from celebrating, retailers are privately grumbling about a costly logistical nightmare.

Stores groups are already engaged in the most cut-throat pre-Christmas discounting for years. With Marks and Spencer holding “20 per cent off” days and others engaging in similar promotions, the VAT cut – equivalent to 2.1 per cent of selling prices – is likely to be lost in the general noise.