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British shoppers made over £4bn in sales last year, figures released by HM Revenue & Customs suggested.

The latest quarterly report, based on figures from retail research firm the NPD Group, showed retail sales rose 0.6%.

The retail industry had its best year since 2011, helped by the fall in energy costs. Other products such as clothes fell as a result.

Labour said it believed the UK “could be on course for another record” year.
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It is likely to be the highest year for retailers since the 2008 financial crisis.

The government has predicted sales growth of 2% to 3% for 2016 – far higher than the 1.8% increase economists expected, according to the BBC’s economic editor Robert Peston.

As to why sales were so strong, many shoppers had high incomes and were buying higher-yielding, longer-dated home improvements, a survey by mortgage lender Halifax found.

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But, the NPD forecast that sales should begin to fall in 2017 as the impact of higher fuel prices begin to bite. Retailers are already preparing for a period of weak sales, with some pointing out that they have invested heavily on infrastructure in recent years.

UK consumer spending last year was £5.9bn.

The rise in consumer spending has been a “stronger-than-expected” feature of the last three months of 2016 but had fallen back in the preceding months, a NPD source said.

In the previous quarter, spending on clothes, appliances, furniture and household improvements fell

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