Britons will pay more for everything they buy  on their Christmas and winter breaks as the pound slumped to a record low against the euro.

Two years ago £100 bought 145 euros - today some travellers are picking up less than 100 euros for £100.

Many families will now have to cut holidays abroad next year, while those who have already booked will have to budget spending on items such as car hire, meals and drinks.

Yesterday the pound to hit 1.136 against the euro – the pound’s lowest value since the Euro was introduced in 1999.

The 'tourist rate' for the pound dropped to 1.07 euros. Travellers buying currency at airports were given even less – in some cases once commission is deducted, £100 is converts to 99 euros.

Britons take more than 30m winter and summer breaks in European countries where the euro is the currency. Winter breaks in France, Austria, and Italy resorts will be among the first to be hit.

Everything tourists buy abroad will be more expensive – from the taxi ride from the airport to drinks, food and car hire.

While the cost of package deals later this year is unlikely to be significantly affected by the change, holidaymakers will have to carefully count their euros while abroad.

Travel agents are holidaymakers stretch their pounds by recommending trips to non-euro countries like Turkey.

Against the US dollar the pound is at $1.48, down 25% since the start of the year.

Analysts believe the pound is falling so sharply because of growing fears over the recession gripping the British economy.

In the City, the FTSE opened at 4381 and fell 14 points to 4367. In New York, the DOW rose climbed from 8693 to 8761 – putting on an extra 68 points.