BP IS TO create 3,300 jobs in Scotland and Humberside, through a pounds 500m expansion of its UK chemical manufacturing plants designed to boost their competitiveness. The oil giant, which is currently in the process of merging with the American firm Amoco, is to build new plants at its sites in Grangemouth, Scotland and Hull and extend an existing ethylene pipeline to link the two sites. The investments, due to be completed by 2002, will create 3,100 construction jobs and 225 full-time chemicals jobs once the expansion is complete. If any of the candidates were any good they wouldn't need to be doing this. "If they had had a non-executive, independent chairman, this would not have happened."Analysts said the in-fighting only served to underline the problems of the company, which reported a 23 per cent fall in profits last week One said:"They look like a rabble.

Some insiders also say that Chris Littmoden, who has been instrumental in turning round the Brooks Brothers operation in the United States, is not out of the running.Institutions are concerned that Sir Richard, who is known as the dominant figure on the M&S board, is using that position to try to manoeuvre his man into place. "Greenbury shouldn't win just because of the force of his personality but because he has good enough arguments to support his case," one investor said.The fund manager criticised M&S for not sorting out its structure earlier. M&S insiders say there is "despair" over the way the succession is being handled.Though Mr Salsbury may be Sir Richard's choice, it is understood that Mr Oates also has his supporters on the board. One senior fund manager said: "Keith Oates has not so much thrown his hat into the ring as lobbed a pound of Semtex into it." Mr Oates made his move to establish himself as the logical successor to current chairman, Sir Richard Greenbury, last week after non-executives balked at Sir Richard's apparent attempts to position Peter Salsbury, the managing director in charge of general merchandise, as his successor.

INSTITUTIONAL INVESTORS in Marks & Spencer said yesterday that Keith Oates, the group's deputy chairman, was playing a "high risk game" by lobbying the retailer's non-executive directors for the top job. He said a rebound in world trade and continued growth in the European Union would help the UK reach his targets for growth in 2001 of between 2.75 per cent and 3.25 per cent of gross domestic product (GDP).The Chancellor staunchly defended his projections for borrowing, and repeated that his "golden rule" - only borrow for investment - would not be broken over the course of the economic cycle.His comments came as Sir Clive Thompson, president of the Confederation of British Industry (CBI), warned that the Government needed to "grasp the nettle" on public spending.Speaking at the CBI southern regional dinner at Ascot, Sir Clive said: "We need to face up to some uncomfortable questions about priorities and affordability.". Last week's bold move by the Bank of England - which cut rates by half a point - will help achieve his targets.Mr Brown said yesterday that one reason why his growth forecasts were reasonable was that "monetary policy is more forward looking and able to react to what is happening all over the world". Producer input prices also fell by 0.2 per cent.Despite the weak economic data, Chancellor Gordon Brown defended his view that the economy was on course for a soft landing next year.Giving evidence to MPs on the Treasury Select Committee, Mr Brown said his forecasts for the UK economy - of growth slowing to 1 to 1.5 per cent next year before rebounding in 2000 - were based on the best information available and in line with other leading forecasters.The Chancellor is understood to have factored significant interest-rate cuts into his forecasts. This takes the year-on-year rise in output prices to just 0.1 per cent, the lowest since March 1960.