Brussels is changing its spending policies to potentially redirect tens of billions of euros to defence and security, as Russia’s war in Ukraine and Donald Trump’s return to the White House heap pressure on the EU to boost investment.

The policy shift would apply to about a third of the bloc’s common budget, or some €392bn from 2021 to 2027, money that is aimed at reducing economic inequality between EU countries.

Only about 5 per cent of these so-called cohesion funds has been spent to date, with the biggest beneficiaries, including Poland, Italy and Spain, spending even less.

Under existing rules, these funds cannot be used to purchase defence equipment or directly fund the military, but investment in so-called dual-use products such as drones is allowed.

Capitals of member states will be told in coming weeks that they will now have more flexibility under the rules to allocate cohesion funds to support their defence industries and military mobility projects such as reinforcing roads and bridges to allow the safe passage of tanks, according to EU officials.

This will include permitting funding for boosting the production of weapons and ammunition, though the ban on using EU funds to purchase those weapons will remain.

A spokesperson for the European Commission said cohesion funds could be used for the defence industry as long as they contributed to the “overall mission to enhance regional development”, including military mobility.

Germany is the linchpin for European military mobility due to its location but its transport infrastructure is in poor shape. The Berlin economy ministry estimated in 2022 that the country needed to spend €165bn urgently on roads, rails and bridges. Germany is due to receive €39bn in cohesion funds through to 2027.

The move will also be welcomed by states on the EU’s eastern border, which have ramped up military spending since Russia’s full-scale invasion of Ukraine, while some suffered a drop in foreign investment.

“We have to invest into military mobility projects which are costly . . . [and] important not only to one country, but also the whole region,” said Gintarė Skaistė, Lithuania’s finance minister.

Trump warned Nato allies earlier this year that as president he would encourage Russia to do “whatever the hell they want” if alliance members failed to meet their defence spending target.

Poland in particular has been piling pressure on the commission to spend more on defence. Warsaw spent 4.1 per cent of its GDP on the military this year, double the Nato target, and it plans to reach 4.7 per cent in 2025.

EU countries have spent relatively little of their cohesion funds so far because they have instead prioritised billions in so-called recovery funds made available in the wake of the Covid-19 pandemic. These expire in 2026.

Poland has typically spent a relatively large amount of its cohesion funds compared to its peers, but has been a laggard in the current budget cycle because it could not access funds that were frozen by Brussels in 2022 amid concerns over the rule of law.

The money only started flowing after Prime Minister Donald Tusk took office in December last year.

The shift in policy to bolster defence-related spending will also be welcomed by net payers into the EU budget, such as Germany, the Netherlands and Sweden, which see the use of existing funds as preferable to issuing joint debt or providing more EU funding.

Shifting money away from other priorities such as green and digital infrastructure to the defence industry would require the commission’s approval, one official said.

“The fact that we should pay more attention to defence does not mean that we should forget about the green transition or cohesion,” Piotr Serafin, the incoming EU budget commissioner, said during his confirmation hearing last week. 

Regional governments have mixed feelings about the push towards defence spending, worrying that the shift could come at the expense of regional development, and imply a centralisation of funding away from local authorities.

But at the same time, they welcomed support for projects that fail to attract private capital.

“In my region, I have a training field for troops that needs to be connected with an airport,” said Olgierd Geblewicz, president of Poland’s West Pomerania region. “If it is the regions who will decide . . . with local acceptance it will be possible.”

The shift in policy is a preamble to a stronger focus on defence in the next EU budget starting in 2028, which will be negotiated from next year. A recent report for the commission by former Finnish president Sauli Niinistö advocated reserving 20 per cent of that for defence.

“We are under stronger pressure than others, we need more military presence. Our defence expenditure is high, the next European budget should take that into account,” Jürgen Ligi, finance minister of the Baltic state of Estonia, told the FT.

Data visualisation by Alan Smith and Cleve Jones

BRITAIN’S biggest building society is introducing a new interest-free overdraft buffer for borrowing just in time for Christmas.

From Wednesday, a new £50 interest-free buffer will apply to new and existing overdrafts on Nationwide three main current accounts: FlexPlus, FlexDirect, and FlexAccount.

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An overdraft enables you to borrow money through your current account if you run out of cash.

You can set up an arranged overdraft with your bank, allowing you to borrow up to a pre-agreed limit.

Typically, there’s a fee for going overdrawn, which increases the more you borrow.

However, some banks offer interest-free buffers, meaning they won’t charge interest until your borrowing exceeds a certain amount.

Currently, Nationwide charges interest on any overdraft balances above 1p.

This means that if you’re overdrawn, you’ll start paying interest at 39.9% EAR.

However, starting Wednesday, it will introduce a buffer of £50, so customers will only start paying interest at 39.9% EAR on balances above £50.01.

The society said 25% of its overdraft customers dip into the red by £50 or less each month, so the buffer means those people will now not pay interest in a typical month.

Nationwide said that it would write to eligible customers to notify them of the change.

Marta Edwards, head of current accounts at Nationwide, said: “Most people use an overdraft occasionally, but if you are worried about your reliance on it then get in touch with your bank or building society as they will have a range of support available.”

While Nationwide’s new buffer will be welcome news for millions of borrowers, some lenders provide even more generous terms.

First Direct offers the highest standard interest-free buffer at £250, followed closely by AIB (Allied Irish Bank) at £200. 

HSBC and Barclays also provide a £25 and £15 interest-free buffer, respectively, for those with a standard fee-free current account.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, added: “There are also other bank accounts that offer up to £500 as a buffer, but many of these will charge a fee or may require minimum funding.”

For instance, HSBC and Barclays Premier bank accounts provide interest-free buffers worth £500.

However, to qualify for these accounts, you’ll need an income of at least £75,000 a year.

In contrast, NatWest, RBS, TSB, Bank of Scotland, Halifax, and Lloyds Bank do not offer a standard interest-free buffer, although certain account types may qualify for a buffer ranging from £50 to £100.

Other banks, including Danske Bank, Ulster Bank, Santander, Co-op Bank, Metro Bank, and Virgin Money, do not offer any interest-free buffer as standard.

What are the alternatives to overdrafts?

Depending on individual circumstances, some borrowers may find it more cost-effective to use alternatives to an overdraft, such as a credit card with a 0% interest period.

Some people may also have savings they could turn to, rather than going into debt.

Ideally, you will have built up an emergency fund which you can dip into — but sometimes that just isn’t possible.

Before you borrow cash, do your research and find out the cheapest option for you.

It is also worth considering a loan from a credit union.

They are a much cheaper alternative to payday loans, and some can even get cash to you on the same day.

The interest rate offered on these loans is substantially lower than that offered on a credit card or overdraft.

Interest ranges from 12.7 per cent APR (one per cent a month) to a maximum capped rate of 42.6 per cent APR (3.5 per cent a month).

GET FREE DEBT HELP

There are several groups which can help you with your problem debts for free.

• Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
• StepChange – 0800138 1111
• National Debtline – 0808 808 4000
• Debt Advice Foundation – 0800 043 4050

You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.

Speak to one of these organisations – don’t be tempted to use a claims management firm.

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They say they can write off lots of your debt in return for a large upfront fee.

But there are other options where you don’t need to pay.

Japanese gaming giants Nintendo and Sony are heading into this year’s crucial holiday season with little to offer mass-market consumers — one relying on sales of a seven-year-old console and the other appealing only to hardcore players with a new premium offering that critics say is overpriced.

As Sony released the $700 PlayStation 5 Pro last week to mixed reviews, Nintendo put a damper on the industry’s biggest quarter, lowering its guidance on sales of its ageing Switch console from 13.5mn to 12.5mn for its fiscal year ending in March. Traditionally, Nintendo roughly doubles its revenues in the December quarter compared with its September one.

“It’s fairly grim this year,” said Gareth Sutcliffe, head of gaming at Enders Analysis. “It would be difficult to imagine a holiday season that is less exciting than this one when it comes to gaming hardware.”

The picture is also stark for video game releases, with no new blockbusters expected this year and many developers holding fire for a next-generation console from Nintendo, with details expected to be announced in the new year.

“For a host of reasons, notably the PlayStation and Switch console cycles, the sector has been in a bit of a lull,” said Bernstein analyst Robin Zhu. “The new-game launch slate looks set to remain light into year-end. The holiday heavy-hitters for PlayStation will mainly include games launched in the last six months, like Black Myth: Wukong.”

The typical life cycle for a console generation is five years, but the Switch is now in its eighth year and has sold an impressive 146mn units since its launch in March 2017. More than 65mn PS5 units have been shipped since it went on sale in November 2020, but both makers and game developers are looking to the future at this late stage in the cycle and trying to work out where demand will lie.

Bets are increasing that the future will be “post-hardware”, with the industry shifting to the cloud, games becoming platform-agnostic and the only mass-market dedicated gaming machines being those that have a portable component built in.

Microsoft is looking to sell more of its own games on rival consoles and promote its subscription service, Game Pass, which gives access to hundreds of games that can be played on its own Xbox, a PC or streamed over the internet to other devices for a monthly fee. Consoles such as a PlayStation 6 or new Xbox may come to occupy a niche as higher-margin, premium products that are not a core part of the business.

Nintendo appears to be in the hardware driving seat so far. The success of the Switch — in its standard form both a handheld device and one capable of docking at home — is forcing other gaming companies to rethink their attitude to portable machines, even if there is some concern that it is waiting too long to release a new console.

“Nintendo is in an awkward transitional period where it needs to still support the current console but needs to keep back the real blockbusters to successfully launch the next one,” said Serkan Toto, head of consultancy Kantan Games. “It seems they are content with a few very silent quarters before the next device comes out.”

The problem for console makers is that traditional gaming machines are becoming increasingly expensive to produce and the overall installed base has been flat for years.

“Consoles seem to have hit this very, very hard ceiling of demand and they cannot get past it,” said Sutcliffe at Enders Analysis. “The only model that has exceeded that is in the mobile space, and that is where Switch comes in.”

Sony’s latest results on Friday were buoyed by strong games software sales — including from third-party developers — but the PS5 hardware has never outperformed its PS4 predecessor in sales when the cycles are compared.

The PlayStation 5 Pro is unlikely to change that dynamic, with Sony still targeting 18mn units to be sold this year, including the Pro.

The Pro “is hardware targeting high-end hardcore users, so we didn’t plan for it to have a large contribution to overall sales in the first place”, said Sony’s president Hiroki Totoki last week. “As of now, we don’t see the pricing for PS5 Pro having a negative impact on our plans.”

While no game-changer for earnings, the Pro could be a clear signal of where the industry is headed. It offers better graphics and performance and is $200 more than the vanilla PlayStation 5, putting it within striking distance of some gaming PCs, even before the extra cost of add-ons such as a disc drive or a stand are factored in.

Thus, Sony’s strategy appears to be to keep margins high for a niche product, knowing avid gamers will be willing to pay for a 67 per cent increase in compute capacity, which Sony says will provide 45 per cent faster rendering of gameplay action.

“The $700 price tag of the PS5 Pro strikes us as a similar sort of price discrimination strategy as the GTI version of a Volkswagen Golf — the ‘hot’ version of an otherwise mainstream product that’s aimed at enthusiasts,” said Zhu.

However, the Bernstein analyst added, a social media storm over the price at the recent Tokyo Game Show and reviewers questioning whether the upgrade was worth the money could open up an opportunity for Nintendo.

“Public sentiment-wise the internet outrage surrounding PS5 Pro pricing should provide air cover for Nintendo to sell the Switch 2 at $400 or even perhaps $450 without provoking a backlash,” he said.

Nintendo shares also received a boost last week when its president Shuntaro Furukawa said the new console, due to be unveiled before the end of March, would be backwards-compatible, making it capable of playing existing Switch games.

The hope in the industry is that if Nintendo gets its pricing and concept right for the Switch’s successor, it could provide a blueprint for the rest to follow, and next year’s holiday season could be a very different affair.

“What happens with the PS5 and other consoles depends on how people react,” said Miguel Angel, a 34-year-old developer at Lapsus Games, at the Tokyo Game Show. “Gaming is already expensive . . . and the truth is that people already only buy consoles every few years.”

MCVITIE’S has released new festive sweet treats for Christmas with seasonal twists on family favourite snacks.

The McVitie’s Gingerbread Flavour Milk Chocolate Digestives will be hitting the shelves with a recommended retail price of £1.89.

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The company is also releasing the McVitie’s Jaffa Tree, which it describes as the “perfect centrepiece” or a “fantastic stocking filler” for any seasonal celebration.

It has a price tag of £3.00.

A spokesman said in a statement: “The McVitie’s Jaffa Tree is an eye-catching treat brimming with the zesty goodness of original Jaffa Cakes and the delightful bite of Jaffa Jonuts.

“Each beautifully designed tree-shaped package promises to bring a burst of citrusy cheer and chocolatey joy to your festive gatherings.

“Whether you’re a devoted Jaffa Cakes aficionado or simply looking for the perfect gift for someone special, the Jaffa Tree is sure to make your celebrations even merrier!”

Meanwhile the Gingerbread Digestives are described as having a “delicious blend of holiday cheer and joy”.

A spokesman said: “Spice up your festivities with McVitie’s Gingerbread Flavour Milk Chocolate Digestives.

“A limited-edition treat returning for 2024, the warm, aromatic flavour of gingerbread combined with creamy milk chocolate offers a unique spin on the nation’s favourite biscuit.”

It comes as shoppers flocked to M&S to pick up a giant festive tub branded better than all of the Christmas faves.

With Christmas just around the corner, M&S mixed its iconic Mini Bites into a family sharer for the first time ever, The Sun reported last week.

The epic mix is three times the size of the classic tubs, and includes the bestselling double chocolate mini rolls, caramel crispies, and new festive flavour, cranberry and yoghurt clusters.

An M&S icon since 2001, there are 14 tubs in the range, plus three new tubs for the festive season.

The new tub is set to fly off the shelves, after the brand announced the new festive treats on Instagram, sending shoppers in a frenzy.

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All Images Credit Handpicked Hotels

England offers a wide range of accommodations for travelers, from sleek, modern skyscraping hotels in bustling cities to secluded rural escapes surrounded by bucolic landscapes. Yet for the historically curious, few experiences compare to a stay in a medieval castle or stately manor. These grand structures, steeped in centuries of intrigue, have borne witness to generations of nobles and aristocrats, and today, they offer guests a unique chance to step into that world—though with the comforts of modern amenities.

As one admirer put it,”Staying in an English manor feels like being in a novel where you are both the reader and the protagonist, surrounded by centuries of whispered secrets, draughty corridors, and the faintest aroma of history and intrigue.”This experience awaits in places like the New Hall Hotel & Spa in Sutton Coldfield, where the countryside meets old-world charm.

New Hall Hotel & Spa, located in Sutton Coldfield near Birmingham, is one of England’s oldest continuously inhabited moated manor houses. Steeped in over 800 years of history, this unique estate combines medieval architecture with modern luxury. The hotel boasts lush gardens, a serene spa, a pool, and a fitness suite, making it an ideal destination for both relaxation and historical intrigue. Notably, Henry VIII is rumored to have stayed here, adding a regal layer to the estate’s legacy.  

The Moat: A Watery Enchantment

Encircling New Hall is its mythical watery boundary.  Thought to be the oldest moat still functioning around a residential building in England, it serves as both a shield and a spectacle. From the moment you cross over the water and through the ivy-framed archway, you begin to sense the separation from the outside world and what awaits within.

By daylight, the moat reflects the grandeur of the Hall, capturing the sunlight glinting off its water.   In the evenings, as dusk settles over the estate, the moat becomes darker, almost mysterious, its presence lending the Hall a fortress-like character. Here, one can almost imagine knights and noble guests crossing over it centuries ago, a testament to New Hall’s legacy as both a residence and a bastion.

A Vision of Tudor Grandeur: The Exterior

Built originally as a private mansion in the 13th century, New Hall’s Tudor architecture is instantly commanding, with its heavy stone walls, steep gables, and towering chimneys. The Hall has been preserved with such respect that it feels entirely authentic, right down to the wrought-iron accents and pointed arches. There’s also a picturesque quality to the building’s façade with its broad mullioned windows and imposing stone surfaces accented by climbing ivy. You’ll also notice the occasional burst of wildflowers, softening the Hall’s formidable appearance and reminding you that nature is just as much a part of this property as its human legacy.

Inside the Manor: A Journey Through Time

The interiors of New Hall are every bit as impressive as its exterior. Crossing the threshold, one is greeted with historic detailing that has been attentively preserved and thoughtfully integrated with refined modernity. The lobby’s ceilings are punctuated by ancient wood beams, each carved and weathered. Heavy, dark wood paneling lines the walls, giving the space an immediate sense of warmth, balanced by light streaming in through large, decorative windows. These interiors are grand without ever feeling ostentatious.

Rich tapestries and heraldic symbols nod to the building’s noble past, while antique furniture – carefully selected to enhance rather than distract – adds to the period ambiance. Deep armchairs and inviting sofas populate the sitting rooms, clad in richly patterned fabrics. Light filters through stained-glass panels in the common areas, casting jewel-toned patterns across the stone floors and making the room feel alive with color.

The Regal Accommodations: Where Character Meets Comfort

Guests choose from 60 well-appointed rooms in the manor house that embrace its history while providing today’s creature comforts and modern amenities.  Throughout are high-backed wooden beds, adorned with plush, embroidered linens, sit beneath intricate wooden ceilings, while thick drapes add a sense of privacy and luxury. Original stone windows with deep sills invite natural light, framing views of the moat or gardens outside, grounding each room in the landscape.

The Princess Elizabeth Master Suite showcases the Elizabethan era on a grand scale with furnishings including a s grand four-poster bed draped in elegant fabric, creating an impressive focal point in the room. The suite also includes a spacious sitting area, which is designed with period furnishings ideal for relaxing by the suite’s large windows. These windows, in keeping with the architectural style, bring in ample natural light and may feature stained glass and intricate leaded designs, framing serene views of the moated grounds and surrounding woodlands.

In the bathroom, a classic roll-top bathtub and a generous walk-in shower provide modern comforts within a historic framework.  This suite is designed for those who appreciate history without sacrificing luxury, creating a stay that feels both immersive and indulgent in one of England’s oldest inhabited moated houses. 

Dining: A Culinary Experience with a View

New Hall’s 2 AA Rosette dining experience is superb as well where the setting is as exquisite as the menu. The Bridge Restaurant is their main dining space offering views of the gardens and moat. The menu showcases the best of British cuisine, with a focus on seasonal and locally sourced ingredients, all crafted with an eye for both tradition and innovation.

Starters include delicate, flavorful dishes such as home-cured salmon or a velvety leek and potato soup, a comforting nod to the English countryside. The main courses are equally impressive, from perfectly roasted meats to vegetarian options bursting with flavors and textures. The chef’s ability to modernize classic British dishes while staying true to their origins is a testament to New Hall’s culinary ambitions.

An extensive wine list accompanies the menu, with carefully selected options that pair seamlessly with each dish. For those inclined toward an indulgent experience, New Hall’s afternoon tea is not to be missed. Served in an intimate lounge setting with garden views, it’s a traditional spread of finger sandwiches, freshly baked scones, and exquisite pastries that celebrate British flavors with a touch of sophistication.

 The Spa: Sanctuary Within History

New Hall’s on-site spa offers a sanctuary surrounded by gorgeous grounds. The spa blends modern relaxation with a historic setting, offering an indoor pool, hydrotherapy pool, sauna, and steam room. Surrounded by glass walls, the spa provides serene views of the estate’s lush grounds. Guests can enjoy signature massages and advanced facials, using eco-friendly, natural products that align with the hotel’s refined style. 

The Gardens and Grounds: A Story in Every Corner

Throughout the stay, guests will want to stroll through the gardens and grounds which are as enchanting as the manor itself.   The estate spans 26 acres with manicured paths and wildflower-studded lawns. The gardens are a mixture of formal landscaping and natural woodland, where century-old trees cast dappled shade on the paths below, while roses and other flora bloom in careful harmony, giving the grounds a sense of timelessness.

Hand Picked Hotels

New Hall Hotel is part of Hand Picked Hotels, a collection of 21 carefully selected properties across the UK. Known for their unique charm and rich history, each hotel offers a perfect blend of traditional elegance and modern luxury. From grand country estates to intimate boutique properties, Hand Picked Hotels provides a memorable and personalized stay.  

A Stay Steeped in Heritage and Luxury

While some hotels vie for heritage charm, it’s a palpable presence at New Hall. There you’ll find that history isn’t something to observe from afar but something to step into, surrounded by architecture and landscapes that have seen the passage of centuries. Every detail, from the stone exterior to the tapestry-laden walls, and the idyllic gardens to the superb dining experience, serves as a reminder that New Hall Hotel and Spa is a place where old-world charm and modern luxury coexist in seamless harmony. New Hall is more than a mere hotel – it’s an invitation into history.

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Conservative leader Kemi Badenoch has said the TV dramatisation of the Post Office Horizon scandal brought “urgency” to compensation payouts, as she blamed the civil service for “going round and round in circles”.

Badenoch, who oversaw the Post Office as business secretary from February 2023 to July 2024, told a public inquiry into the affair on Monday that a hit ITV series pushed the scandal up the government’s list of priorities.

It was Mr Bates vs The Post Office “that made things happen”, she said. “It suddenly turned [compensation] from a value-for-money question to a public perception question.”

The new opposition leader said civil servants had wanted “legal cover” for their decisions on sub-postmaster compensation and that there was “far too much going round and round in circles . . . because everybody is worried about getting in trouble later.”

Around 983 Post Office branch managers were convicted between 1999 and 2015 for offences including theft and false accounting using evidence from Japanese technology company Fujitsu’s flawed Horizon IT system.

Others were not convicted but used their personal savings to make up erroneous shortfalls.

The previous Conservative government announced in January, shortly after the ITV series aired, that it would legislate to exonerate victims en masse and offer a fixed sum of £75,000 as an alternative to a full claim for participants in a group litigation that revealed the extent of the scandal.

Roughly £440mn has been paid so far to more than 3,100 claimants across four compensation schemes. Chancellor Rachel Reeves set aside a total of £1.8bn in Labour’s first Budget to cover the cost of compensation.

Victims have complained that the compensation process is slow and bogged down in administration, while they receive offers that are below expectations and require formal appeal.

Badenoch blamed bureaucracy and “the government machine” of the civil service for delays in getting compensation to sub-postmasters.

Sir Alan Bates, the lead campaigner in the scandal, told the Financial Times the Department for Business and Trade had adopted a legalistic approach that had resulted in wrangling between lawyers and delays in compensating victims.

“It should be down to the sub-postmaster to determine what is a fair result,” he said.

Bates has rejected two offers of compensation from the government with the most recent representing around one-third of his initial claim.

Giving evidence to the House of Commons business and trade committee last week, the former sub-postmaster said he would consider taking legal action to seek a deadline for payouts.

Jonathan Reynolds, the current business secretary, told the inquiry earlier on Monday that he was reluctant to set a cut-off for payout claims for fear of excluding late claimants from compensation.

However, Reynolds said he would “consider” a deadline if “we go into next year frustrated at a lack of claims coming in”.