Wednesday's papers

For the Guardian this morning the recession is over.

as official data showed mothballed factories springing back to life and rising optimism in the City stoked a new merger spree.

the paper adds that

FTSE 100 index of blue-chip stocks pushed close to the 5,000 mark for the first time since the aftermath of Lehman Brothers's collapse 12 months ago, prompting the second multibillion pound deal of the week.
Meanwhile, government figures showed that Britain's hard-pressed manufacturers had cranked up production for a second successive month in August after running down stocks dramatically in the early months of the year.

Economists said that the data and forecasts indicated that Britain’s economy was growing for the first time in more than a year and a half – and the recession was most likely over. A recession is officially defined as the economy shrinking for two or more successive quarters.

reports the Telegraph

The Express agrees reporting that the

cost of living in Britain has dropped for the first time in two-and-a-half years offering a welcome boost to recession-hit consumers.

The Mail hails David Cameron as the 10% axeman as he

proposed reducing the number of MPs and slashing ministerial pay.He said driving the Commons gravy train 'well and truly into the buffers' would show Parliament is leading the way in a new era of belt-tightening.

Tax rises for the well-off should form a key part of Gordon Brown's political fightback, the influential Labour backbencher Jon Cruddas said last night.reports the Independent

Mr Cruddas called for a number of tax increases to redistribute wealth and allow Labour to regain political momentum – becoming the first senior Labour figure to do so.

A Sun investigation has revealed that

FORTY convicted Islamic terrorists are back on the streets after being released from jail

adding that

another 50 plotters, including al-Qaeda trained Sohail Qureshi, will be free soon.

Staying on the terrorism subject the Guardian reports that

Senior Pakistani sources have accused Britain of failing to do enough to tackle home-grown terrorists and maintain they are falsely being blamed for harbouring extremists plotting to attack the UK

The Times reports that a mosque frequented by the leader of the airline plot terrorist cell has been a recruiting ground for extremists for more than 20 years

The paper leads with the news that

Tens of billions of pounds will have to be raised through flight taxes to compensate developing countries for the damage air travel does to the environment, according to the Government’s advisory body on climate change.