Monday newspaper round-up: Budget hole, Fed head, trains, Tesco

Fresh analysis that reveals a hole of almost £20bn in the public finances will heighten the pressure on the chancellor, Philip Hammond, ahead of next month’s budget. Britain is on track for the deficit – the gap between government spending and tax receipts – to reach £36bn by 2021-22, more than twice the initial official forecast of £17bn, according to the Institute for Fiscal Studies (IFS). - Guardian

The nomination of the frontrunner to succeed Janet Yellen to chair the US Federal Reserve is set to be announced this week. Jerome Powell, 64, a member of the Fed’s board of governors, is likely to be announced as the nominee of President Trump, according to reports in the United States. It would elevate him to one of the world’s most powerful financial positions, with influence over interest rates, the dollar and economic growth. - The Times

Britain’s embattled train operators have promised to deliver an £85bn revolution on the rails in the next 18 months with thousands of new carriages, more convenient ticketing systems and better punctuality, as fears of renationalisation mount. The industry will today pledge to rely less on taxpayer support by running a day-to-day surplus that will free up cash to be invested in creaking rail infrastructure. - Telegraph

Theresa May is resisting calls from Philip Hammond to free green belt land for housing as he seeks radical cost-free measures for the budget. The chancellor wants to use next month’s statement to continue to tackle Britain’s poor productivity, and the lack of housing in high-demand areas is regarded as a key factor. - The Times

Philip Hammond is being urged to cancel interest fees on student loans and scrap the rules that allow debts to be written off after 30 years. The chancellor needs to take radical action to defuse a “looming student debt time bomb” as well as ease the burden on new graduates, according to the UK2020 Conservative think tank. - The Times

A major revision to the predicted economic benefits of a third runway at Heathrow has “trashed” Government evidence in support of the controversial expansion, opponents have claimed. The Government has increased the amount it expects Heathrow project to contribute to the nation’s economy over 60 years by a fifth to £74bn. - Telegraph

The former owner of Monarch airlines has promised that any profit generated by the failed airline will be used to help repay taxpayers for the £60m spent on the repatriation of stranded passengers. The pledge, made by Marc Meyohas, partner at investment firm Greybull Capital, was revealed by a leaked letter written to the chair of the Transport select committee, Lilian Greenwood MP. - Telegraph

The British government’s attempt to lobby individual EU leaders in the run-up to the recent crunch EU summit, where member states were to judge the progress of the negotiations, actively damaged Theresa May’s hopes of a better outcome, the Guardian has learned. A secret plan had been drawn up under which the EU leaders would have made the surprise and highly symbolic move of stating in their conclusions on the day of the European council meeting that they would take into account Britain’s positions as they announced their intention to scope out their ideas on a post-Brexit transition period and trading relationship. - Guardian

Britain’s grocers are braced this week for the a provisional decision from competition watchdogs on Tesco’s £3.7bn takeover of the cash and carry giant Booker. The Competition and Markets authority is expected to unveil the findings of a five-month investigation of Tesco chief executive Dave Lewis’s controversial expansion bid. - Telegraph

The legal battle against music piracy and the illegal streaming of top-flight football such as Premier League matches dominates cases in the high court, an analysis shows. Football and music bodies were the top three claimants last year, bringing almost 300 cases against pirates in the ongoing battle to protect the value of the multi-billion pound industries. - Guardian

Confidence in Britain’s car industry will be dented again this week when industry figures reveal another cut in sales forecasts. The Daily Telegraph understands that the fall in demand for new vehicles is accelerating and will trigger a further downgrade to the Society of Motor Manufacturers and Traders’ (SMMT) market predictions.

Breaches by pharmaceuticals companies of the prescription medicines code have risen sharply. The number of complaints received by the Prescription Medicines Code of Practice Authority rose by 41 per cent to 76 last year, its annual report shows. - The Times

Behind the political battles over household bills lurks a far greater energy cost crisis. It risks damaging British industry and undermining attempts to boost productivity after Brexit. Households are paying more for clean power than they should, but official data shows UK bills are still below average compared to the EU. - Telegraph

An obscure tax on insurance premiums now raises £4.8 billion a year, despite little evidence of its impact on consumer behaviour. The insurance premium tax, a levy on general insurance premiums that was introduced in 1994, has risen faster than the tax on tobacco and is now equivalent to £179 a year for each UK household, according to the Social Market Foundation. - The Times

Treasury ministers were left in the dark about plans to alter UK listings rules in an effort to attract the potential £1 trillion-plus listing of Saudi Aramco to London amid intense competition to win the float. Two days before the Financial Conduct Authority publicly revealed a consultation on the creation of a new sovereign premium listing category, a Treasury official contacted the regulator to complain that the ministry had been “caught off guard” by the work. - The Times

The telecoms watchdog has intervened over fears Apple’s new £1,000-plus iPhone X could be used to tie consumers into a three-year mobile contract. Ofcom has banned 36-month contracts to protect consumers but the price of the latest Apple flagship has prompted Virgin Media to find a way around the regulation. - Telegraph

Screen zombies may have overwhelmed our homes, streets and public places but Britain finally appears to be fighting back. The use of smartphones may have peaked as research suggests that young people have started putting them down. -The Times

Waterstones could be up for sale as its Russian owner explores his options. Alexander Mamut, the bookstore chain’s billionaire owner has appointed NM Rothschild to advise on strategic options, including an outright sale or a refinancing of its debt. - The Times

Partners at EY are in for a pay boost after revenues at the accounting giant smashed a record for the year to June 30, helped in part by the UK’s decision to leave the EU ramping up the demand for advice. Results released today show that each UK partner was paid £677,000 for the period, or £15,000 more than last year, as revenues rose 9.2pc to hit a high of £2.35bn. - Telegraph