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BHS pension deficit ‘swells following interest rate cut’

The BHS pension deficit may have soared to more than £700m following last week’s interest rate cut.

The cut in borrowing costs to 0.25% combined with a new round of quantitative easing could add another 7% to pension scheme deficits, according to consultancy Hymans Robertson.

This could amount to as much as £50m to the existing BHS pension deficit bill and the full figure may stand around £717m, the Guardian reports.

Arcadia boss and BHS former owner Sir Philip Green has promised to “sort” the pension deficit but the newspaper reported he is unlikely to have to pay as much as that, which is the most pessimistic figure based on a “buyout” calculation.

 

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