Tougher times

THE Governor of the Bank of England has warned that Britain could be set for tougher times as soaring oil prices may see a rise in interest rates, it emerged.

Mervyn King admitted the Bank's Monetary Policy Committee had been caught off guard by an abrupt fall in growth and sharp acceleration in inflation.

In a speech to business leaders in Newcastle last night, Mr King prepared the UK for economic turbulence with a possible rise in interest rates.

GUS sales down

THE owner of Argos and Homebase said today it was bracing itself for another tough year, after seeing sales decline at both its retail businesses.

GUS, which bought Worcester firm, Kays, told investors that like-for-like sales fell three per cent at catalogue business Argos in the six months to September 30, while the figure for Homebase was four per cent lower in the period since the end of February.

BHS in reverse

RETAIL tycoon Philip Green resisted the temptation to pay himself a dividend from his Bhs empire, after sales and profits went into reverse.

Operating profits of £105.1m banked during the 53 weeks to April 2 were kept within the business.

Rise in jobless

THE number of people claiming unemployment benefit increased by 8,200 last month to 875,500, official figures showed.