Wednesday's papers

Looming unemplyment and further tales of recession this morning.

The Independent reports that the number of people without a job in Britain is expected to reach 2.5 million today, with almost 1 million of those under the age of 25 adding

The figures will show that overall unemployment has risen by over 800,000 in a year – a 50 per cent increase – as almost every sector of the economy, from construction to the City, sheds labour.

Meanwhile the Times reports that a leading public sector watchdog warns today

Britain faces a surge in drug addiction, alcoholism and domestic violence as the second wave of the recession and rising unemployment take a grip,

adding

Councils are not doing enough to prepare their communities for the fallout as the impact of more business failures, bankruptcies and the soaring jobless toll leads to deepening social and human problems, the Audit Commission reports

Meanwhile the Sun reports that pirates are close to our shores reporting that the Artic Sea

THE cargo ship that pirates are thought to have sailed brazenly through the English Channel was carrying timber worth more than £1million.

descfribing it as

the first such act of piracy in European waters in living memory.

The Telegraph turns its attention to the banks which it says are making the highest profits on mortgages since records began. Customers are also facing record costs for overdrafts and personal loans.

The difference between the interest rate that banks charge and the rate at which they borrow is the biggest since the Bank of England started collecting data 15 years ago.

Yesterday's main story continues to be in many of the papers.The Mail reports that

Baby Peter's natural father is to sue Haringey Council for its failure to protect his son. He is said to be agonised by the memory of his last hours with Peter and devastated by the fact he was duped by his ex-wife.

Finally the Guardian reports on the latest spat between Peter Mandelson and George Osborne.

On his third day deputising for the prime minister, the business secretary mocks the Conservatives' claim to be the party of progressives, and attacks the leadership over its plans for spending cuts, the environment and its position in Europe.