Wednesday newspaper round-up: Hammond, disposable incomes, Heathrow

Chancellor Philip Hammond is to adopt a new flexible fiscal framework in this month’s Autumn Statement, banishing rigid targets to ensure the government has “headroom” to react if Brexit fallout hits the economy. Mr Hammond told cabinet colleagues on Tuesday to expect only a modest fiscal stimulus, with a programme of new infrastructure spending expected to run to the low billions of pounds a year. – Financial Times

Takeda, Japan’s largest pharmaceutical group, is in advanced talks with Valeant to acquire Salix Pharmaceuticals for about $10bn, according to people briefed about the negotiations. The exact terms of the potential transaction for the gastrointestinal treatment specialist company are still being discussed and two people warned that the deal could still fall apart. – Financial Times

British households can expect a cut in their disposable incomes next year as the knock-on effects of the vote to leave the European Union send inflation rocketing and weaken the outlook for the economy. The government’s freeze on tax credit payments will also play a part in dragging down real disposable incomes for the first time in four years, according to forecasts by the National Institute of Economic and Social Research (NIESR). – Guardian

One of the biggest insurance companies in Britain is to use social media to analyse the personalities of car owners and set the price of their insurance. The unprecedented move highlights the start of a new era for how companies use online personal data and will start a debate about privacy. – Guardian

Avant Homes, a privately-owned house builder, has reported a 43pc boost in revenues as the chief executive demanded the Chancellor use the Autumn Statement to help the whole UK housing market, not just the South-east. Revenues stood at £160m for the six months to October 31, and operating profit is believed to have increased by over 75pc to around £16m in the same period. – Telegraph

The government handed Heathrow a £10 million-a-year saving in business rates while increasing those charged at Gatwick, only weeks before giving the go-ahead for a £17.6 billion third runway at Britain’s biggest airport. Figures from the Valuation Office Agency show that at the five-yearly revaluation announced last month, the government cut the rateable value of Heathrow from £247.5 million to £215 million. – The Times

South West Water faces a £1.7 million fine by the industry regulator for missed targets, including a series of incidents that led to sewage being spilt into the sea. Ofwat is consulting on the penalty after finding that the company missed targets for serious waste water pollution in the year to April 2016. The spills occurred at Combe Martin, Sandy Bay and Dawlish in Devon, as well as Fistral beach and Looe in Cornwall. – The Times