BRITISH industry today appealed to the Chancellor, Mr Kenneth Clarke, not to be "blown off the wire" over his interest rate policy after it emerged 95 per cent of large companies said the surging value of the pound was hitting their businesses.

A survey from the British Chambers of Commerce (BCC), covering more than 8,600 companies employing almost 900,000 workers, revealed the manufacturing sector was "stuttering".

The BCC said its survey revealed a "tale of two economies". Its survey for the last three months of 1996 showed the service sector was surging ahead - for the fifth successive quarter - while growth in manufacturing was still below the level of 1994.