Desperate retailers have launched a TV price war as they fight to halt the high street spending slowdown. Currys fired the first shot by slashing more than £300 off some sets.

The retail giant also pledged to cut the cost of all the 73 different models of television on sale at their 550 UK stores. Supermarket giant Tesco retaliated with a salvo of reductions that saw up to £250 scythed from TVs available in shops and online. Then John Lewis joined the action by announcing it would match the prices offered by its rivals.

It said it would throw in a free five-year guarantee as well.

Argos shot back with news that it was also cutting the cost of many sets.

The stores war came as experts warned that customers swamped by a wave of financial woes had slashed spending.

Richard Perks, of retail analysts Mintel, said: “Consumers are really starting to cut back but this is not just about the squeeze on in-comes. People’s confidence is also draining away.”

Among the best deals are a Samsung 46in 1080p digital cut by £340 and an LG 42in HD Ready 1080p digital LCD TV down £300, both at Currys, while Tesco had taken £250 off the cost of a 48in Sharp HD Ready LCD and Argos offer around £200 off 37in Panasonic TVs.

The cuts come as electrical retailers try to claw back sales in the wake of a three per cent drop in the first quarter of the year.

There is also a food price war raging with Asda launching a range of staple foods at 50p, while low cost stores such as Lidl and Aldi see business boom as shoppers shun upmarket rivals like Marks & Spencer.