Thousands of jobs are under threat after Toys R Us and Maplin became the latest casualties of the embattled British retail sector as inflation-squeezed shoppers shun the high street to spend online.

Struggling to keep pace with their more nimble online rivals, the two companies confirmed today that they will join the growing list of bricks-and-mortar stores to collapse into administration with a total of 5,500 jobs at risk.

Elsewhere, the pound has dropped to a two-week low after the EU reignited the Irish border row by proposing that Northern Ireland could end up in a "common regulatory area" with its southern neighbours separate from the rest of the UK.

Amid accusations that the EU is trying to seize part of the UK, sterling slipped 1pc to $1.3790 against the dollar while against the euro it dipped back below €1.13.