THE North-East was last night living up to its reputation as the social capital of the UK after a survey showed that the region will spend more than any other on eating, drinking and making merry this Christmas.

A retail Christmas survey from accountants Deloitte predicted that the average North-East consumer will spend £184 on socialising over the festive period - compared to the £144 national average.

The region's £178 spend per person on food and drink was also significantly ahead of the national average, and beat London, the North-West and the South.

And, despite its reputation as being the downtrodden economic cousin of the South, the North-East people are the second most generous when it comes to spending money on gifts, spending £322 per head, just behind the Midlands' extravagant £329 per head.

Paul Williamson, senior partner at Deloitte's North-East office in Newcastle, said the news was good for the region's economy and retailers.

"The North-East does have a national reputation for enjoying itself throughout the year, and our survey shows that this trend will continue through the festive period," he said.

"From a business point of view, retailers and the hospitality trade will be looking forward to a successful year-end in a national economic climate which still holds a general degree of uncertainty, and they will no doubt be raising a glass or two to our local population.

"The planned spend also reflects a good degree of regional consumer confidence, one that is based on the continuing growth that the North-East is experiencing in many different sectors."

However, across Britain predictions of a slow Christmas for retailers look set to come true.

Spend on presents is expected to fall by 2.8 per cent - or £400m - from £15.1bn last year to £14.7bn this Christmas.

However, food retailers will have a merrier Christmas than last, with slight growth in food and drink spending, and a rise in socialising.

It is the first year in ten that a significant increase in overall spending at Christmas has not been predicted.

And consumers are being more cautious with their plastic, with 80 per cent paying for most of their Christmas shopping using cash or debit cards - not credit cards.

Mr Williamson added: "In a Christmas market where pundits have predicted Retail Armageddon, the savvy shopper may well delay shopping in the hope that retailers will cut prices to stimulate demand.

"For this reason, gift vouchers are likely to be a popular gift this year for those who want to make the most of the after-Christmas sales."