Marks & Spencer, the UK retailer, has struck a flexible new funding deal with its pension scheme that will reduce its net debt by £540m (€613m), as companies grapple with the problem of nursing expensive final-salary retirement funds through the economic downturn.

In its full-year results statement this morning, the retailer said it had agreed with the trustees who run its pension scheme that it will be able to cut its payments to the scheme if times get tough for the company. If it took that step, it would save £50m a year.