Online spending 'to reach £40bn'

Increased broadband use is fuelling online retailing, says the study

Online shopping in the UK is due to hit £40bn this year, a study estimates.

The figure comes from price comparision website, Uswitch, which says the boom is being fuelled by cheaper broadband deals and faster connection speeds.

A separate study from Forrester Research predicts that online Christmas shopping will reach £13.8bn this year, a 42% increase on 2006.

Uswitch's 2007 figure is based on data pulled from official Office for National Statistics retail numbers.

It predicts that the UK's online spending will further rise to £162bn by 2020, when it will make up 40% of total retail sales.

More than three quarters of British homes now have broadband internet.