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Government Makes 'U-Turn' On Sunday Trading

Shops could be open longer on Sundays under new proposals to be set out in Wednesday's budget, despite a recent reassurance to a campaign group that this would not happen.

George Osborne is planning to devolve decisions on opening times to local authorities and mayors.

The Chancellor will argue that "a growing appetite" for Sunday shopping means that areas should be able to decide whether longer opening hours would boost their local economy.

But Sky News has discovered the announcement comes just over two months after one campaign group was sent a reassurance on behalf of David Cameron that his party had "no current plans" to relax the laws.

A letter dated 20 April 2015 to campaign group Keep Sunday Special, written on behalf of the Prime Minister by the Conservative political correspondence manager, says: "I can assure you that we have no current plans to relax the Sunday trading laws.

"We believe that the current system provides a reasonable balance between those who wish to see more opportunity to shop in large stores on a Sunday, and those who would like to see further restrictions."

The letter ends: "I hope you find this reassuring and thank you, once again, for writing to the Prime Minister."

Existing laws prevent larger shops from trading for more than six hours on a Sunday.

The announcement could also see resistance from trade unions, small businesses and the Church.

But research by the New West End Company suggests extending Sunday trading by two hours in London alone would create 3,000 jobs and generate over £200m a year in income.

The Government will also argue that trade was boosted when the laws were relaxed for an eight-week period during the Olympics in 2012.

The Chancellor said: "Even two decades on from the introduction of the Sunday Trading Act, it is clear that that there is still a growing appetite for shopping on a Sunday.

"There is some evidence that transactions for Sunday shopping are actually growing faster than those for Saturday.

"The rise of online shopping, which people can do round the clock, also means more retailers want to be able to compete by opening for longer at the weekend.

"But this won't be right for every area, so I want to devolve the power to make this decision to mayors and local authorities.

"This will be another part of my plan to ensure a truly national recovery, with our great towns and cities able to determine their own futures."

Paris has recently relaxed restrictions on Sunday trading, while there are none at all in New York.

High street shops have been coming under growing pressure from online retailers, which account for 11% of retail sales overall.

The Chancellor's plans are expected to be taken forward in the Government's new Enterprise Bill in the autumn.