British business leaders yesterday insisted that last week's IRA bombing in London would not sabotage economic activity. It is "our unwavering determination that terrorism will never win", said Sir Bryan Nicholson, president of the country's main employers' organisation, the Confederation of British Industry (CBI).

Only a few hours after his statement, anti terrorist police disarmed an explosive device in the heart of central London's West End tourist and business district after a series of coded warnings were received by police. The coded warning followed an IRA statement in Dublin that its campaign would continue, a week after an IRA bomb went off in eastern London's Canary Wharf.

In a speech at the CBI London region's annual lunch at Guildhall in the City, Sir Bryan said: "Business will play its part by doing what it's best at getting on with the job".

He said London's role as a major world financial centre was crucial to the country's economic success and would not be thrown off course by the attack. Counting the cost: Page 3