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AS only (no A2) chem for eco student?

A friend of mine (yeah yeah, I know what people think of posts which start like this. Believe what you will) recently got his Edexcel AS results, where he performed very poorly in all of his subjects (maths, physics and chem) except economics. We're talking C/D/U level bad. Now he wanted to drop chem and focus on retaking just the other two but apparently his school councillor is telling him to sit for chem for AS only. Now, does just an AS degree not count for anything at all without sitting for A2? It's not like he's planning to give chem A2 later.
He plans to apply to LSE and has three 9s, fout 8s and a 7 in GCSEs. Should he drop chem altogether or at least resit for it in AS?