A senior ally of Andy Burnham has called for an increase in capital gains tax and a relaxation of fiscal rules, advocating for increased government borrowing to foster economic renewal. Louise Haigh, who is positioned for a prominent role in a potential Burnham administration, stated that a "fundamental redesign" of the tax system is necessary.

The proposal comes as Burnham prepares to deliver an economic policy speech next week. The discussions around economic policy coincide with a period of record heatwaves, which are also dominating headlines.

Other newspaper reports highlight different aspects of public discourse. The Observer's front page focuses on "The cost of cool," while the Independent points to the record heatwave as a "wake-up call" for Britain. The Daily Star features a headline "Yanks a lot!," and the Sunday Mirror's front page declares "Devolution revolution."

The headline on the front page of the Observer reads: "The cost of cool."

The headline on the front page of the Independent reads: "Record heatwave must be 'wake-up call' for Britain."

Additionally, The Sunday Times reports on a new defense plan involving a shift from destroyers to drones, and the Mail on Sunday scrutinizes a case involving significant profit from a council home sale.