Britain's economy could feel a much-needed cash injection because of Prince William and Kate Middleton's upcoming royal wedding.

Retail analysts are already saying the financial boost could top £600 million.

Huge amounts are set to be spent on wedding souvenirs with some firms already rushing to produce merchandise before the big day.

The couple are due to tie the knot in either spring or summer next year whene the eyes of the world will be on the pair as they walk down the aisle.

Retail research expert Neil Saunders said: "We think wedding-related merchandise sales could easily top £26 million in the UK, while food and grocery retailers could cash in to the tune of £360 million as consumers buy extra treats to celebrate the occasion as well as Champagne and wine to toast the happy couple."

The engagement of William and Kate was announced to the world on Tuesday. The Prince and his bride-to-be are now in talks with royal advisers on planning their wedding day.

The Taxpayers' Alliance has called on the pair to be frugal in their approach rather than lavish - in line with the economic struggles which many are currently facing.

St James' Palace has said the couple are "mindful of the economic situation."

The policing bill for the wedding, to provide security for the public and guests who could include world leaders and royalty from across the globe, could run into tens of millions of pounds.