The VAT increase is not putting off online shoppers.

That’s according to research from Invisible Hand and online price comparison website.

It analysed over 100,000 online shopping experiences and found a 27% increase in shopping activity during the first 10 days of January when compared with the 10 days before Christmas.

More than 40% of online consumers were buying luxury electronic items like TVs and iPods.

Robin Landy, founder of Invisible Hand said, 'People have continued shopping regardless of the extra cost of purchases and many retailers will be pleasantly surprised at the sustained spending and browsing that has continued well after the Christmas peak'.