AI is dominating the UK newspaper front pages this morning after the prime minister announced his defence strategy yesterday. Prime Minister Keir Starmer has laid out plans to grow the British Army as he vows to put the country on a war footing and be prepared for Russian threats. 

KKR, previously the preferred bidder to rescue Thames Water, has withdrawn, complicating the company’s financial stability amid a £22.8bn debt crisis.

Good morning! ☕ Let’s grab a coffee and dive into the headlines for Tuesday, 3rd June 2025. After weeks of glorious sunshine, the grey skies have returned. A touch of morning rain is on the way – so don’t forget your brolly if you’re heading out.

Leading the news in Britain is news that the UK government’s AI bill has been defeated in the House of Lords again (for the fourth time) as peers back an amendment to the bill that would require AI companies to reveal which copyrighted material they have used.

The UK government’s proposed Data (Use and Access) Bill has faced its fourth defeat in the House of Lords. Peers voted 242 to 116 in favour of an amendment that would require greater transparency from tech companies using copyrighted material to train artificial intelligence models.

The Independent Water Commission has identified “interlocking failures” in England and Wales’ water sector, necessitating comprehensive reforms in five key areas.

YouTube comedian and magician Archie Manners has been hired full-time by the thinktank Resolute 1850, now set to be renamed The Centre for a Better Britain.