Retail sales in Britain unexpectedly fell last month as consumers started tightening their belts ahead of the government's austerity measures, fuelling fears that the economic recovery has stumbled.

Retail sales have now fallen for two months in a row. Yesterday's spending review set out sweeping cuts to welfare, higher education and social housing which are likely to sap consumers' confidence further.

"The second successive fall in retail sales in September is surprising and particularly worrying given the importance of consumer spending to the economy," said Howard Archer at IHS Global Insight. "Indeed, it can only fuel fears that the recovery is faltering markedly and it increases pressure on the Bank of England to revive quantitative easing in addition to keeping interest rates down at 0.5% for an extended period."

Retail sales volumes were down 0.2% last month, and August's fall was revised lower to 0.7% from 0.5%, according to the Office for National Statistics. City economists had expected sales to rise by 0.4% in September.

Clothing and shoe shops suffered a 0.8% fall, the figures showed, while internet and mail order sales were down 0.5% and supermarkets and other food stores recorded a rise of just 0.1%.

The last time retail sales fell for two months in a row was last winter, between December and January.

Consumer spending will also be hit by VAT rising to 20% from 17.5% in January.

"Earnings growth is not keeping pace with inflation and a double dip in the housing market has probably sapped confidence," said Alan Clarke at BNP Paribas.

"Overall, a disappointing month again. In the context of the monetary policy committee, not so long ago the MPC minutes were optimistic on the outlook for the consumer. That must have suffered a setback given the retail sales data, contributing to another baby step closer to another round of QE."