Cheaper broadband and faster Internet access are boosting spending online to an expected £40 billion in 2007.

The figure comes from price comparison website, Uswitch, and is based on the data taken from official Office for National Statistics retail numbers.

Uswitch predicts that the UK’s online spending will further rise to £162 billion by 2020, when it will make up 40 per cent of total retail sales.

Meanwhile, almost three-quarters of consumers (74%) will use the Internet or mail order to help with their Christmas shopping this year, according to the Annual Christmas Retail Survey published by business advisory firm Deloitte.

Two thirds (66%) of consumers will research or purchase goods online compared to half of the population (51%) last year.

Use of the Internet for the bulk of Christmas shopping has also doubled to 14% in 2007 from seven per cent in 2006.

Further details can be found on Deloitte’s website