'Times' to increase price by 5p

The Times is to raise its price to 25p on Monday, after a year of undercutting its rivals by charging 20p, writes Maggie Brown.

The 5p increase was ordered by Rupert Murdoch in response to a 50 per cent rise in newsprint so far this year. The Saturday paper will also rise by 5p, to 35p.

It is a clear sign that the vicious price war initiated in July 1993 by the newspaper's parent company, News International, is abating. It was sparked off when the Sun's price was reduced to 20p (from 25p). Earlier this month the Sun, in its second rise this year, moved up another 2p, to 25p a copy.

t Stephen Dorrell, the Secretary of State for National Heritage, yesterday accepted that there was a case for reconsidering the rules governing national commercial radio franchises, such as Classic FM. Under the current system, operators would have to submit to a blind auction all over again, which means successful formats could be destroyed, while ITV companies can renegotiate and extend their licences.