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Hi hope someone can help!

I have a 1997 Rover 620SLi - and keep it well serviced & maintained but the mpg "urban" is very poor (at worst 15mpg) at best 20mpg is this normal?
what should I be getting around the doors?

Last year I had problems with the engine light coming on while driving, but that was caused through the wires from the lambda sensor rubbing against the cooling fan housing which had caused them to bare! this was then reinsulated by the garage and it seemed ok for a while but still had no effect on the mpg?

This year the mpg got worse, so I took the car to a main Honda garage (has a 2.0 ltr honda engine) for a major service. Went on Holiday to Devon and mpg was about 34/36 on a good run. However, the mpg got worse after hols - so I took it back to Honda for its MOT and they failed it on its emissions - they said that the Lambda sensor was bust and that had probably destroyed the Cat! (Total estimated bill from Honda to fix the problem would be between approx £900 - £1,000) So I took it back to the garage I used to use all the time and they replaced the Lambda sensor for £50 and it passed its MOT. But the engine light is now coming on again when I first start it up, but if I switch the engine off and then back on again the engine light does not come on Strange! mpg is still crap between 19 to 20mpg on a full tank 52ltrs (approx 11gallon) (miles on trip from a full tank of juice 200ish) can this be right/ Help someone Help!!!!!! Please.
 
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