John Healey, Britain's chancellor, and Prime Minister Andy Burnham face hard economic truths ahead of next month's Budget. The UK government's room for manoeuvre has been dramatically cut by the continuing fallout from the Iran war and a global bond sell-off that has forced up Britain's borrowing costs to levels not seen since before the 2008 financial crash. George Parker and Sam Fleming write on how Britain's fiscal reality is closing in on Downing Street.

Elsewhere, Russian President Vladimir Putin has moved this year's Valdai Discussion Club meeting to Moscow from Sochi due to Ukraine's drone strike campaign. Jaguar Land Rover is in live discussions with Nato countries interested in buying the revamped Defender military vehicle. Industrial America is contending with supply chain inflation as Donald Trump's Iran war pushes up energy costs and tariffs.