Monday newspaper round-up: Household spending, Brexit plans, Brexit delay

Squeezed British households have cut back their spending for the first time in almost four years, according to figures that underscore the pressures from rising prices and political uncertainty. Visa, the credit and debit card processing business, said its vast database of spending patterns shows there was a drop in spending across a broad range of categories last month, including clothing, household goods, food and transport. - Guardian

Ruth Davidson, the Scottish Conservative leader, became one of a growing number of Conservative and Labour figures suggesting that Mrs May should establish early cross-party support for a new plan for Brexit. Several senior MPs have also called for the establishment of a parliamentary commission to oversee the UK’s negotiating position. Senior Labour figures said that they were interested in the idea and Sir Michael Fallon, the defence secretary, did not rule out co-operating with Labour. - The Times

Theresa May is to be told the EU will take a year to draft a new mandate for its chief negotiator, Michel Barnier, effectively killing the Brexit negotiations, if she insists on discussing a future trade relationship at the same time as the UK’s divorce bill. In a sign of growing impatience with the shambolic state of the British side of the talks, senior EU sources said that if London insisted on talking about a free trade deal before the issues of its divorce bill, citizens rights and the border in Ireland were sufficiently resolved, it would be met with a blunt response. - Guardian

Theresa May brought back her former adversary Michael Gove last night to stave off a Tory civil war over Europe as she faced overwhelming pressure to soften her stance on Brexit. The prime minister was forced into cabinet changes she would never have contemplated before last Thursday’s election, as bloodletting began over the party’s dismal performance and Tory grandees reopened wounds over Brexit. - The Times

Ireland’s Prime Minister has issued a warning to Theresa May over her plans to do a deal with the DUP to prop up a Tory minority government. Enda Kenny, who has been Taoiseach since 2011, said he had indicated his “concern” to the Prime Minister over the plan and suggested the arrangement, if poorly handled, could jeopardise the peace process in Northern Ireland. - Telegraph

Almost one in four households in Britain will be renting privately by the end of 2021 as soaring house prices and stagnant wages put home ownership out of the reach of growing numbers of people. Around 5m households, or 21% of the total, are in private rented accommodation, a quarter of whom are families with children. - Guardian

America's central bank is poised to raise interest rates for the second time this year as policymakers take another step towards normalisation amid an improving economy. The US Federal Reserve is expected to raise its federal funds target to between 1pc and 1.25pc, from 0.75pc to 1pc in just the fourth increase since the financial crisis. - Telegraph

Aggressive tax hikes in emerging markets are holding back the number of cigarettes some of the world’s largest tobacco companies are able to sell. Major companies such as British American Tobacco, Philip Morris International and Imperial Brands have been facing challenging conditions in emerging markets, which has cooled growth in terms of the number of cigarettes they are able to sell there. - Telegraph

An easyJet pilot asked passengers to vote on whether to take off in an aircraft with engine trouble, it was claimed. The company strenuously denied the allegation yesterday. - The Times

Private schools are receiving a £522 million taxpayer subsidy on their business rates because they have charitable status, research suggests. More than half of the 2,707 private schools in England and Wales are eligible for rate relief of up to 80 per cent, according to the business rent and rates specialists CVS. - The Times

Centrica has launched its own rival to Homeserve after a potential bid for the boiler repair service provider was scuppered by competition fears. It is understood the British Gas owner explored a £2.5bn takeover of Homeserve last year as part of its efforts to diversify its business away from the traditional energy supplier model which is under threat amid a boom in low-cost rival upstarts. - Telegraph

The Guardian newspaper will soon abandon its European-style “Berliner” print format and go tabloid to help stem heavy losses. It is understood that an agreement to outsource printing to Trinity Mirror could be announced as soon as this week, although senior sources said it was not yet completely finalised. The plans mean The Guardian will be redesigned to fit smaller tabloid pages. - Telegraph

The diplomatic crisis engulfing Qatar threatens to derail the £160bn building programme the country needs to finish to be ready to host the 2022 World Cup. The oil and gas-rich Emirate had planned to reach peak construction on eight state-of-the-art World Cup stadiums and major supporting infrastructure including a new Doha metro system this year and next. - Telegraph

Britain’s largest peer-to-peer lender has heightened its focus on building a bank, firing the starting gun on a recruitment push that will see it hire at least 40 developers for the project. Zopa, which started life as an “eBay for money” service in 2005, has until recently focused its energy on matching people looking for a loan with people wanting to make an investment - cutting out any need for a bank. - Telegraph

Uber's chief executive and founder Travis Kalanick is weighing up a temporary exit last night following an extraordinary series of scandals that has thrown the US technology giant into chaos. A potential three-month leave of absence was discussed at a board meeting yesterday, during which Uber considered its response to a broad internal investigation into the company’s culture, due to be published this week. - Telegraph