The bank found that 70 per cent of shoppers prefer cash over card when they indulge in a bit of retail therapy and over 40 per cent of retailers agree with them.

Head of cash marketing at Alliance & Leicester, Russell Carter, said: “The results of our survey highlight that cash continues to be crucial to retail businesses.”

However, spending on credit cards continues to outstrip cash spending, and buying online is the fastest-growing type of spending around.

Last year UK consumers spent £16 billion online and the practice is on the increase.

On the 29th December, a single card transaction signalled the overtake in credit spending by cash.

Last year the total spending on cards stood at £273 billion while cash came in at £272 billion.

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