Arcadia's Sir Philip Green on retail, VAT, inflation and business finance

We picked out the best bits of Sir Philip Green's interview on Working Lunch so you can fast-track your way to his insights. Here's what the boss of Arcadia - the retail super-power that counts TopShop, BHS and Dorothy Perkins among its many chains - has to say:

On how low retail prices help survival:

“There are people out there still with disposable income... Our average sale is £20 to £30 – that’s not a considered purchase. When you go higher it’s tougher.”

On fluctuations in sales:

“If I took you from Monday to Saturday last week, there could’ve been a 30% swing – just purely because of the weather.”

On the retail industry during the recession:

“There are still concerns – like underlying cost growth. There is not a retailer I know of who will not have to increase prices.”

“I think the single biggest factor over what happens to the retail sector is what happens to VAT.”

On inflation:

“I think we’re dreaming if we don’t believe there’s going to be inflation. There is underlying inflation in food, and there will be inflation in other product categories.”

On business funding and bank lending:

“Whatever you read, the banks are not lending, there is no cheap money, businesses are not being funded properly.”

“If we get some proper liquidity back in the system, things will improve.”

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