A rush of sales are expected this month ahead of the VAT rise in the new year and many retailers are relying on these to see them through the quiet post-January period. 'Bad Weather in the run up to Christmas will have a major impact on the UK's economy and could lead to significant losses for already struggling businesses,' said David Graves, director of insurance company RSA. 'If we lose just one fifth of our daily GDP through companies not being able to open and people canceling spending plans on events and shopping, we're looking at about £1.2billion every working day.

'If the weather continues for the next two weeks, as the Met Office is predicting, this figure will quickly spiral to more than £12billion, dwarfing the hit we took in January this year,' he added. Absentee levels could also hit a year-long high this week.

'The message for employers is clear - if your staff haven't made it in over the last few days, they probably won't be in at all this week,' said Aaron Ross, the chief executive of FirstCare, an absenteeism management company.

But while the bad weather has hit many parts of the economy, for others it has proved an opportunity.

Halfords said an extra 16,600 sledges were being shipped in from across the globe to meet demand.