Sunday Papers: Interest rates 'may hit 8%' in two years - other news

The Sunday Telegraph

* Interest rates may rise to 8% within two years to choke off soaring inflation, Andrew Lilico, chief economist at the influential Policy Exchange think tank, has warned.

* Lloyd's of London underwriter Equity Red Star is under investigation by the City regulator over concerns about the impact of bodily injury claims on its balance sheet.

* A row has broken out at Nottinghamshire County Council after its chief executive hired an "improvement director" on a £110,000 annual salary just days after announcing 3,000 job cuts.

* Lidl, the cut-price supermarket, is dipping its toes into the world of electricity trading dominated by banks and utilities – as it seeks to deal with increasing energy bill volatility.

* The Forum of Private Business has said that banks are undervaluing the property which

small companies offer as security against loans, further inhibiting access to finance.

* Britain's largest banks are to warn the Coalition Government that its shake-up of financial regulation risks creating an "accountability gap", The Sunday Telegraph understands.

The Observer

* Activist investor Crystal Amber calls again for removal of Michael Grade as chairman as Pinewood Shepperton prepares to report half-year results.

The Independent on Sunday

* Jubilant Energy, an Indian oil and gas group, has decided to press ahead with a London listing on the junior Alternative Investment Market this autumn.