Wednesday newspaper round-up: Rent freeze, Barclay brothers, interest rates

(Sharecast News) - Britain is facing a £35bn economic hit and the risk of a recession this year as the fallout from the Iran war adds to the pressure on Keir Starmer's government, a leading thinktank has warned. The National Institute of Economic and Social Research (Niesr) said that even under a best-case scenario the UK economy would grow at a much slower pace this year and next because of the Middle East conflict. - Guardian Downing Street has dismissed the idea of a freeze on private sector rents even as Rachel Reeves left the door open to such a move, after the Guardian revealed the chancellor has been considering it as an option to cut the cost of living. A No 10 spokesperson said on Tuesday that freezing private sector rents was "not the approach we will be taking" after sources told the Guardian it was Reeves's preferred solution for dealing with a spike in housing costs in the wake of the Iran war. - Guardian

The former Telegraph owners Aidan and Howard Barclay have narrowly avoided bankruptcy after reaching a settlement with HSBC over more than £140m in overdue debts. The bank said it had withdrawn bankruptcy proceedings against the brothers in a High Court hearing on Tuesday. The agreement comes after the brothers agreed to a debt repayment plan known as an Individual Voluntary Arrangement (IVA). - Telegraph

The Iran war risks causing food shortages as soaring fertiliser prices push more farmers to the brink, the World Bank has warned. As many as 45 million people worldwide could face "acute food insecurity" this year if the conflict in the Middle East continues, the organisation said. It follows a warning that farmers will struggle to keep up food production as they face a 31pc increase in fertiliser prices this year. - Telegraph

Interest rates should be left unchanged by the Bank of England this Thursday, The Times shadow monetary policy committee urged, but a large proportion of the panel said that they should be increased for the first time since 2023 to deal with the Middle East inflation shock. The shadow MPC narrowly voted 5-4 in favour of keeping the base rate of interest at 3.75 per cent, where it has stood since December. - The Times