Business week in pictures

George Osborne bowed to growing concern over the biggest squeeze in living standards since the second world war with an instant cut in fuel duty, but had his claim to be delivering a budget for growth undermined by the ominous prospect of lower growth, rising unemployment and higher borrowing. While insisting during Wednesday's budget that the government was sticking to its austerity plan, Osborne levied a surprise £2bn windfall tax on North Sea oil companies to finance a populist 1p a litre reduction in the price at the pumps Photograph: Peter Macdiarmid/Getty Images

Banks and businesses in Canary Wharf: Some economists were sceptical that growth targets would be met. Critics warned the chancellor that he risked missing his target to eliminate the annual deficit in five years if optimistic growth figures failed to materialise. Business groups and City economists said there was a strong possibility that growth this year would also prove to be more disappointing than expected by the Treasury Photograph: Oli Scarff/Getty Images

Britain could lose its prized AAA credit rating if Osborne's growth forecasts prove too optimistic, ratings agency Moody's warned on Thursday. Moody's cautioned that there was more chance UK economic growth would lag behind rather than exceed Osborne's predictions – which could thwart his drive to cut the deficit. This would create a significant risk that Britain could be downgraded, it said Photograph: Graeme Robertson for the Guardian

But advertising firm WPP gave the budget a swift endorsement by revealing it will probably bring its tax headquarters back to London. Sir Martin Sorrell, above, the head of the world's largest advertising and media group, said Osborne's cuts to corporation tax, and his commitment to review the way that the overseas profits of UK firms are taxed, would lure WPP to Britain again Photograph: Micha Theiner/Rex Features

Hawks on the Bank of England's monetary policy committee calling for an immediate rise in interest rates were outvoted six-three for a second successive month at its March meeting. Andrew Sentance, the independent economist who has led the charge for higher rates, voted for a half percentage point increase in rates from their record low of 0.5%. The Bank's chief economist, Spencer Dale, and external member Martin Weale both repeated their February call for a quarter-point rise, according to minutes released on Wednesday. The majority of MPC members decided continuing weakness in the economy meant it was too soon to increase borrowing costs. On the CPI measure targeted by the Bank, inflation has already hit 4.4% Photograph: Graham Turner for the Guardian

Elsewhere in Europe, experts feared Portugal would be soon be forced to apply for a bailout package worth up to €70bn (£60bn), following the Lisbon government's (above) failure to push through its austerity measures on Wednesday. Portugal is teetering on the brink of becoming the third member of the eurozone to seek assistance from the EU. Prime minister José Sócrates's resignation on Wednesday night left the country in political limbo and piled extra pressure on European leaders who met in Brussels on Thursday Photograph: Armando Franca/AP

Waitrose's ambitious plans to take on rival Ocado have not gone according to plan, as problems with its new £10m website have left some online shoppers defecting to rivals. Waitrose.com went live with much fanfare a fortnight ago but has been beset with a number of problems such as slow speed. Waitrose's troubles will be a boost to rival online grocer Ocado Photograph: PA

The chief executive and chairman of New Look resigned just two months after the fashion chain delivered a disappointing trading update. Tom Singh, the retailer's founder and a major shareholder, is resuming day-to-day control of the company until a new leader is appointed and will assume the title of interim executive chairman. Carl McPhail took the chief executive position in 2008, while John Gildersleeve became non-executive chairman at the beginning of last year. Two months ago the retailer saw like-for-like sales tumble 9.1% in the 15 weeks to 8 January Photograph: Alex Segre/Alamy

Retail sales were down 0.8% month-on-month in February – a larger-than-expected fall that provides more evidence of consumer weakness. Figures released on Thursday showed that sales fell 0.8% compared with January, when they were up 1.9%, the Office for National Statistics said Photograph: Frank Baron for the Guardian

Lloyd Blankfein, the chief executive of Goldman Sachs, has accused one of his former directors of violating the firm's confidentiality by leaking commercially sensitive information to disgraced hedge fund tycoon Raj Rajaratnam (pictured in court, above right, facing Blankfein). Federal prosecutors in Manhattan allege that Rajat Gupta, a former Goldman director, tipped off Galleon Group founder Rajaratnam about price sensitive information on the bank, including alerting him to a $5bn investment in it by Warren Buffett Photograph: Shirley Shepard/AFP/Getty Images

BAA will invest £50m in avoiding a repeat of the Heathrow snow fiasco after a report said the chaos that gripped Britain's largest airport was exacerbated by lack of preparation, poor communication and equipment shortages. An inquiry led by BAA's independent director, Professor David Begg, recommended that Heathrow adopts a new target of never closing due to bad weather and made a total of 14 recommendations. Accepting the report in full, BAA said on Thursday that it would spend £50m on snow-clearing machines, new staff and improving communication with passengers Photograph: Steve Parsons/PA

Energy companies were given 'one last chance' to stop customers from being ripped off or face a full-scale Competition Commission inquiry. Ofgem, the energy regulator, said it had found evidence that the 'big six' suppliers – EDF, British Gas, E.ON, RWE npower, Scottish and Southern and Scottish Power – increase customers' bills more quickly when wholesale energy costs go up than they cut them when costs fall Photograph: Oli Scarff/Getty Images