Today’s news summary – Paper Talk: IMF warning to Hunt over tax cuts in spring Budget
Many of Wednesday’s newspapers carry images of Northern Irish politicians after a landmark deal was agreed overnight by the Democratic Unionist Party (DUP) to return to the government which boosted hopes of a bitter two-year political division in Stormont ending.
The papers lead with a range of topics as their leads, but most focus on domestic issues.
IMF warning to Hunt
The Financial Times leads on the IMF’s warning to Chancellor Jeremy Hunt against tax cuts in the spring Budget. The paper says the IMF has suggested the chancellor focuses on ‘debt and spending’ but the chancellor is reportedly ‘doubtful’ over the advice.
Chancellor Jeremy Hunt told a cabinet meeting there is “little room for big tax cuts” due to major economic structural weaknesses, reports the Times. The paper says relatively low levels of productivity contribute to the structural weaknesses.
The IMF’s record on forecasting is very poor, and it is also very committed to a high-tax, big-state economic model. On that basis, Hunt should just ignore it, and cut taxes anyway.
Matthew Lynn
DUP agreement
The FT front page reports on the DUP’s agreement on new post-Brexit trading rules after a two-year boycott, with Sinn Fein anticipating leadership in Stormont for the first time. Sinn Fein says it’s looking forward to leading the Northern Irish government in Stormont for the first time, the FT reports.
The Guardian’s front page features more smiles as it reflects on Sinn Fein welcoming the plan to restore power-sharing, which could see Northern Ireland have its first nationalist leader by the end of the week.
Cameron Palestine comments
The i newspaper reveals that a speech by the foreign secretary hinting at the UK recognising a Palestinian state was not approved by Downing Street, sparking backlash among some Conservative MPs.
The Daily Telegraph highlights Britain’s potential deployment of an aircraft carrier to the Red Sea to counter Houthis’ drone and missile attacks, with Armed Forces Minister James Heappey mentioning the Royal Navy filling a gap left by the USS Dwight D Eisenhower.
Elon Musk’s Neuralink
Elon Musk’s Neuralink dominates headlines with the first wireless brain chip implant in a human, reported by the Daily Star and Metro. The Metro raises questions about the potential brilliance or Black Mirror nightmare of Musk’s brain chips.