Marks & Spencer will axe more than 1,000 jobs, it has been reported, as economic gloom grips the high street.

The retailer will announce the cuts on Wednesday, including nearly 1,000 posts from shop floors and several hundred from head office and support sectors.

Analysts predict M&S will downgrade its profit targets and slash its dividend tomorrow as its reveals falling sales. M&S shares climbed 8¾p to 238¾p.