Monday newspaper round-up: Budget crunch, wages, manufacturers, GKN, Spire, BT

Philip Hammond has been warned by cabinet colleagues that he faces an ambush on the budget from Tories who want him out. Senior government figures fear that the chancellor has become so toxic that he does not have sufficient authority to get difficult measures through the Commons. - The Times

The Great British wage squeeze may at last be coming to an end, economists believe, as inflation reaches its peak and wages gradually start to pick up. Prices have outstripped wages so far this year with inflation at 3pc in the 12 months to September, its fastest pace in more than five years. - Telegraph

Britain’s manufacturers are putting the brakes on investment plans as uncertainty over Brexit makes them more reluctant to spend money on new factories and machinery, a report reveals. The amount invested by UK manufacturers in new plant and machinery has slowed to 6.5% of turnover, from 7.5% last year, according to a survey by EEF, the industry trade body, as companies press the pause button until there is further clarity on a Brexit deal. - Guardian

Cash-strapped Britons are taking the inflation-driven squeeze on incomes in their stride as they grow more confident about their job prospects, according to a survey. Consumer confidence has improved for the first time in a year and is close to levels recorded during the recovery years of 2014 and 2015, a quarterly survey by Deloitte has found. - The Times

Two of Britain’s biggest energy companies have called on Philip Hammond to strengthen a carbon tax that has driven a dramatic collapse in coal power generation, arguing it is essential for the shift to cleaner energy. SSE, the UK’s second largest energy supplier, and Drax, which runs the country’s biggest power station in North Yorkshire, urged the chancellor to use his autumn budget to shed light on the tax’s fate into the 2020s. - Guardian

The subsidy bill for new offshore wind farms is likely to be almost 50 per cent higher than the government has forecast because officials have overestimated future wholesale prices, research suggests. Last month ministers awarded subsidy contracts to support three big offshore wind farms by guaranteeing them a price for every megawatt-hour of power they generate for 15 years. - The Times

An important report assessing the viability of new “mini” nuclear power plants for the UK to be published this week is expected to give the green light to develop designs proposed by a British consortium led by Rolls-Royce. The Department for Business, Energy and Industrial Strategy (BEIS) is set to issue a study which formally ends a competition between different types of low-carbon power generation to assess which should be supported. - Telegraph

One of Britain’s biggest engineering groups is looking at plans to split itself in two. Analysts are increasingly convinced that GKN may separate its automotive and aerospace divisions in a move that could deliver investors a big windfall. - The Times

Mediclinic International has opened talks with Spire Healthcare Group over an estimated £1.3 billion takeover of the private hospital chain, two years after acquiring a 29.9 per cent stake. The FTSE 100 private healthcare group, which is based in South Africa but also has operations in the Middle East and Switzerland, is expected to issue a statement today confirming its approach for Spire. - The Times

The Government has intervened in a row over wholesale charges for broadband, backing BT's network subsidiary Openreach in its battle against cheaper prices. Karen Bradley, the Culture Secretary, wrote to Sharon White, the chief executive of Ofcom, suggesting she should rethink charge controls that Openreach argues will undermine its ability to invest in new "ultra-fast" broadband infrastructure. - Telegraph

More than 300 new breweries were launched in the UK last year as a boom in craft beer sales encouraged startups with specialist offers ranging from gluten-free beer to ale made from leftover bread. Growth in sales of craft beer in both pubs and supermarkets has encouraged more people interested in home brewing to raise money and open their own microbreweries. - Guardian

NHS patients will be urged to stop asking GPs for antibiotics in the first ever television campaign to prevent a bacterial ‘apocalypse’. Around 5,000 people in England die each year because antibiotics have become resistant to some infections and experts predict resistance will kill more people than cancer and diabetes combined within 30 years. - Telegraph