Planning applications for new stores or refurbishments were 63 per cent lower on average in November in the major UK city centres than a year before as retailers rein in costs in the tough economic climate.

Planning applications for alterations in London plunged 61 per cent in November year on year. They dropped 55 per cent in Manchester, 72 per cent in Newcastle, 63 per cent in Leeds and 62 per cent in Birmingham.

Ken Powell, planning officer for the central area in Westminster, said: “We normally have quite a lot of applications at this time of the year. I think you would have to say it’s to do with what’s going on more generally at the moment.”

The scarcity of applications will affect shopfitters and designers as November is normally the month that retailers apply for permission for major work to kick off mid-January. National Association of Shopfitters director Robert Hudson said: “Shopfitters are suddenly scratching around and finding not much is happening.”

Adam Brinkworth, founding director at design practice Brinkworth, said: “There’s a mood among retailers at the moment to just sit tight, do nothing and take advantage of some of the property deals that will be around in six months’ time.”

Some shopfitters are increasingly searching overseas for work. Fitch chief creative officer Tim Greenhalgh said: “Our overseas activity has been more fruitful than what’s happening here.”