It sounds like a "never had it so good" moment. Cuts in value added tax, lower mortgage rates and cheaper energy have left households 25 per cent better off, says Ernst & Young .

Meanwhile, wealth manager Stonehage reports deflation in the price of luxury goods and services in London. Add a pot of Beluga caviar and a box of Cohibas to your shopping list this weekend! Bargain hard and you may be able to throw in a weekend in St Tropez.