Despite a strong performance this Christmas, retailers face a tough time next year, the boss of John Lewis has warned.

The VAT hike, other tax increases and the general election are set to dampen consumer spending, according to Andy Street, the Partnership's managing director who was in charge of the Bluewater store when it opened in 1999.

Mr Street, who visited Medway last week for the annual Classic FM Christmas Concert in Rochester Cathedral - sponsored by John Lewis - expects flat sales in 2010.

Mr Street told the Sunday Telegraph that he was bearish about the prospects for next year. "We are expecting flat sales," he said. "We are having a corking time at the moment but there is uncertainty due to tax increases and the election.

"Next Christmas is going to be a challenge. Customers will be less well off than this Christmas."

John Lewis has enjoyed a record-breaking Christmas, with week ending on Saturday, December 19, recording the chain's third record week with sales of more than £112 million, 15.5 per cent up on the same week last year.

Freezing conditions have sent sales of outerwear, hats, scarves and earmuffs,"rocketing", John Lewis said.

Meanwhile, despite the heavy snowfall, other shops in Bluewater have also recorded good business, with more than 250,000 people visiting the centre over the weekend.

"We expect over 500,000 guests will visit Bluewater during the final four days of Christmas shopping," said general manager Andrew Parkinson.