The worst is over for the UK economy, Sir Terry Leahy said on Tuesday, as the chief executive of Tesco claimed the retailer’s domestic sales were catching up with faster-growing rivals.

“We are past the low point. Things are getting better,” Sir Terry said of the economic outlook after Britain’s largest retailer reported that its pre-tax profit for the first half of its financial year rose by 1 per cent to £1.42bn.