Monday newspaper round-up: Brexit offer, retail spending, aerospace warning

Ministers are expected to sign off an improved financial offer to the European Union today that Downing Street hopes will unblock the Brexit negotiations. Theresa May will lay out her plans at a meeting of cabinet ministers, including the Leave supporters Boris Johnson, Michael Gove and David Davis. If the proposals are approved, she will present them on Friday to Donald Tusk, the European Council president. - The Times

British shoppers could spend less on Christmas for the first time since 2012, as a fall in real wages and continuing economic uncertainty put a brake on celebrations. A slump in spending on Christmas getaways, as well as cutbacks on clothing and household goods, are expected to result in a 0.1% dip in UK spending during the key shopping period of November and December, according to research compiled by IHS Markit for Visa, the card provider. - Guardian

Britain’s aerospace exporters will warn parliament on Monday of a crippling £1.5bn-a-year headwind if ministers fail to agree urgent new customs and regulatory deals with the EU. Adding to pressure for the government to come clean about its long-term Brexit strategy, the industry will also provide written evidence to the Commons business select committee that the uncertainty is already forcing it to look at moving jobs abroad. - Guardian

Germany was plunged into political crisis last night by the collapse of coalition talks that could trigger fresh elections and put Angela Merkel’s future on the line. Mrs Merkel’s attempts to create a four-party government failed when the pro-business Free Democrats walked out shortly before midnight after repeatedly clashing with the left-wing Greens. - The Times

The government is under pressure to change the law to tackle bogus self-employment and protect workers in the gig economy after a report published on Monday by two influential parliamentary committees. The work and pensions select committee and the business, energy and industrial strategy (BEIS) committee have prepared draft legislation intended to close the loopholes that allow “irresponsible companies to underpay workers”. - Guardian

House building is the “number one priority” in the Budget and the “powers of the state” will be used to force construction numbers up to 300,000 per year, the Chancellor has promised. The green belt will stay intact but other parts of the planning system will be reformed in an effort to get more permissions granted - and to force more landowners with planning permission to get on and build. - Telegraph

Chancellor Philip Hammond is this week expected to risk a new political storm by announcing plans to raise billions of pounds from Britain's army of self-employed workers and contractors. In a speech that economists said would be cautious, the Chancellor is likely to tighten the tax rules under which freelance workers are paid. - Mail

Brexit has cost the average worker a week’s pay in lower real wage growth and higher inflation, according to an analysis by academic economists. Prices since the referendum have risen fastest in products with high import shares, such as bread, eggs and milk as well as furniture and jewellery, the report by the Centre for Economic Performance (CEP) at the London School of Economics said. - The Times

Farmers should be means-tested after Brexit to end the payment of vast subsidies to wealthy landowners, according to a Conservative think tank. The EU system of paying farmers according to how much land they own should be replaced by payments for environmental benefits plus a “means-tested livelihood support” for the poorest, the report by Bright Blue says. - The Times

The government is being urged to avoid “penalising” families and businesses with another hike in the tax on insurance policies, amid speculation that Philip Hammond may be planning a fresh increase in Wednesday’s budget. Insurance premium tax (IPT), which is added to more than 50m general insurance policies each year, including those for cars, homes and private medical cover, rose to 12% earlier this year – which means it has doubled since 2015. - Guardian

Around 28,000 pensioners who used to work at Carillion could end up owning a stake in the construction company under plans to keep it afloat. The outsourcer, which is now worth just a tenth of what it was a year ago, warned last week that it expects to breach covenants by the end of this year following delays to asset sales and cost-cutting efforts. - Telegraph

Wood Group, the oil services engineer, is preparing for a showdown with investors over plans to give its chief executive a 25 per cent pay rise next year, as it makes up to 1,000 staff redundant. At least one top-ten shareholder has told the company it will reject the remuneration deal for Robin Watson if submitted at the annual meeting. The proposal was set out in a letter to investors. - The Times

Toshiba has announced plans to sell Westinghouse, its bankrupt nuclear reactor business, in a move that could help rescue the stricken Moorside nuclear power plant project in Cumbria. The embattled Japanese conglomerate announced on Sunday that it would raise 600bn yen (£4bn) as it seeks to shore up cash to avoid being de-listed from the Tokyo Stock Exchange. - Telegraph

A broadband company backed by George Soros, the billionaire financier, is working with 100 of Britain’s biggest property developers, including Barratt, Berkeley Homes and Crest Nicholson, to lay 1GB high-speed connections to newly built houses and flats. Hyperoptic, which raised £100 million from a consortium of banks in July and £50 million from Mr Soros’s Quantum Strategic Partners fund in an earlier fundraising, is one of a handful of independent operators in the UK broadband market, building their own rival networks to compete with BT and Virgin Media. - The Times