“It’s a chance for Iraq, and that’s what the Security Council has said,” he said, adding that war was not inevitable. “It’s an important mission, but we’ve prepared ourselves for it We know what we’ve got to do,” he said. “The question of war and peace remains first of all in the hands of Iraq, then the Security Council and the members of the Security Council, but we have a very important role to play. “Our goal is not merely the return of inspectors to Iraq; our goal is the disarmament of Iraq. The dictator of Iraq will give up his weapons of mass destruction, or the United States will lead a coalition and disarm him.”The success of Mr Blix’s team will rest largely on his ability to steer a delicate middle course between any intransigence on the Iraqi side and the Americans’ apparent willingness to use even the smallest irregularity as an excuse to unleash a military invasion. A rhetorical gulf has opened in recent days between the US, with its demands for zero tolerance, and the UN, which has warned against adopting an “angry and aggressive” tone with the Iraqi leadership.Kofi Annan, the UN secretary general, said last week the US appeared to have a lower threshold for military action than the other Security Council members, and cautioned against turning the inspections mission into a hunt for excuses to go to war.On the American side, it is not entirely clear whether the unforgiving tone expresses a genuine eagerness to start hostilities, or is merely a device to keep up the pressure on President Saddam.

There have been growing indications, including statements from President Bush himself, that the US might be willing to regard full disarmament of chemical, biological and nuclear weapons as an acceptable substitute for its stated goal of “regime change”.. Rising house prices feeding into the wider economy will help push inflation over the Government’s target in the next few months and for “most of next year”, Sir Edward George, the Governor of the Bank of England, warned yesterday. We’re going to see it go above target, probably, for the next few months, and it may stay there for most of the rest of next year.”With lower tax receipts from slower growth and the Government’s plans for huge investment in the public services, Mr Brown faces either increased borrowing or higher taxes.Sir Edward made clear yesterday that higher borrowing was more likely. But he told the Breakfast with Frost programme: “The Chancellor has got a certain amount of room for manoeuvre and I am sure he will use it sensibly.”Separately, a CBI survey has shown that small manufacturing companies are at their gloomiest for a year. A balance of 18 per cent of firms said new orders were down over the past four months compared with a balance of 16 per cent last July.. Luke Johnson, the stock market entrepreneur who made his fortune from PizzaExpress, is understood to be working on a bid for the restaurant chain in a move that would see him go head to head with his former business partner Hugh Osmond.

The company has been losing out to competition from rival high street chains and its falling share price has left it vulnerable to a takeover approach, but the board is expected to reject Mr Osmond’s £250m offer. A spokeswoman for PizzaExpress said the company was not aware of an approach from Mr Johnson and no other formal approaches had been made to the group.”We will put out a formal statement if we receive any approaches,” she said. “At the moment we are still dealing with Mr Osmond.” Mr Johnson is understood to be working with Hawkpoint Partners, a firm specialising in mergers and acquisitions.The likelihood of Mr Johnson launching a rival bid for PizzaExpress has been seen as remote by many in the City, on the grounds he is too busy organising a management buyout of his Signature Restaurants business. It is understood, however, that the Signature deal is near completion, leaving Mr Johnson free to pursue other deals.Contacted in France yesterday Mr Johnson declined to comment..