Sunday newspaper round-up: UK debt crisis, Iranian uranium enrichment, OpenAI, British carmakers, Trump tariffs, asylum overhaul.


Rachel Reeves’ tax-and-spend gamble is driving Britain towards a 1970s-style debt crisis and bailout from the International Monetary Fund, leading economists have warned. They have said the Chancellor’s handling of the economy risks a return to the years of high inflation and borrowing that ended with Britain being forced to borrow billions from the International Monetary Fund (IMF) 50 years ago. It came as leading retailers sounded the alarm over the rising cost of taxes and red tape, which is pushing the country into an era of “stagflation”. - The Sunday Telegraph

Source: Sharecast

Iran is prepared to significantly reduce its uranium enrichment to prevent Britain reimposing United Nations sanctions, The Telegraph has been told. Iranian officials said Tehran was willing to soften its hardline stance to avoid further military strikes from Israel and the United States. Ali Larijani, the newly appointed secretary of Iran’s supreme national security council, is leading efforts to convince the clerical regime to lower uranium enrichment to 20% purity, down from 60%. The current enrichment level is approaching the roughly 90% purity required for nuclear weapons development, raising international concerns about Iran’s nuclear ambitions. - The Sunday Telegraph

The boss of the firm behind ChatGPT and the UK technology secretary discussed a multibillion-pound deal to give the entire country premium access to the AI tool, the Guardian has learned. Sam Altman, a co-founder of OpenAI, talked to Peter Kyle about a potential agreement to give UK residents access to its advanced product. According to two sources with direct knowledge of the meeting, the idea was floated as part of a broader discussion in San Francisco about opportunities for collaboration between OpenAI and the UK. Those close to the discussion say Kyle never really took the idea seriously, not least because it could have cost as much as £2bn. But the talks show the enthusiasm with which the technology secretary has embraced the artificial intelligence sector, despite concerns over the accuracy of some chatbot responses and implications for privacy and copyright. - Guardian

Carmakers claimed that leaving electric car sales rules unchanged would threaten British jobs and cost them hundreds of millions of pounds, according to documents that show the private lobbying for a slower transition away from fossil fuels. BMW, Jaguar Land Rover, Nissan and Toyota claimed that rules forcing them to sell more electric cars each year would harm investment in the UK, according to responses to proposed changes submitted to the government. The responses were obtained by Fast Charge, a newsletter covering electric cars, and shared with the Guardian. JLR, the Land Rover maker, said leaving the rules unchanged would “materially damage UK producers’ ability to invest in vehicle lines”. The last Conservative government said last year that automotive manufacturers must sell an increasing proportion of electric cars each year, or else face steep fines, under rules known as the zero emission vehicle (ZEV) mandate. - Guardian

British manufacturers have been left reeling after the White House quietly imposed a huge expansion of goods that will face punitive US import tariffs. From condensed milk to shampoo, children’s highchairs to motorcycles, UK bosses are this weekend scrambling to ascertain the implications of the Trump administration’s decision to impose tariffs of up to 25% on more than 400 new categories that technically contain steel or aluminium. Similarly, the government is racing to determine the fallout on UK manufacturers having been blindsided by the timing of the announcement last week. The new list includes items such as washing machines, garden furniture with metal frames, fire extinguishers, any metal part of a child’s crib or highchair, and tableware, as well as condensed milk, shampoo or perfumes that come in aluminium packaging. - The Sunday Times

Sir Keir Starmer will overhaul the asylum appeal system in an effort to deport failed asylum seekers faster and prevent the hotel crisis derailing the government’s immigration strategy. The main tribunal courts used by failed refugees to challenge Home Office decisions are to be phased out and replaced by a fast-track system under plans to be announced by ministers within weeks. A commission of professional adjudicators will rapidly assess appeals by migrants and determine whether the Home Office’s decision to refuse them asylum and deport them should be upheld. The new body will be given statutory powers to prioritise the cases of asylum seekers being housed in taxpayer-funded accommodation, as well as foreign offenders who have received deportation orders. The Home Office argues this will significantly cut the time appeals take to be heard — the average case now takes more than a year — enabling the government to move asylum seekers out of hotels faster. - The Sunday Times

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.