PRESS DIGEST-British Business - June 5

June 5 (Reuters) - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

The Times

- The UK is facing mounting pressure from both the US and its own defence experts to immediately raise defence spending, with calls to hit 2.5% of GDP now and 3% by the end of this parliament — well ahead of the current 2027 and 2034 targets —amid warnings of a potential conflict with Russia as early as this year.

- President Trump has granted the UK a five-week reprieve from new 50% steel and aluminium tariffs, giving Prime Minister Keir Starmer until July 9 to finalise a trade deal that would permanently lift the duties and protect a key export market for British manufacturers.

The Guardian

- BBC and Sky oppose UK plans to let AI firms use copyrighted content without permission, urging an opt-in model to protect creators.

- A phishing scam targeting His Majesty's Revenue and Customs (HMRC) led to 47 million pounds in fraudulent tax repayments affecting 100,000 UK taxpayer accounts, though officials say no individuals will suffer financial loss and the breach did not involve a cyberattack.

The Telegraph

- The UK has spent over 500 million pounds this year paying wind farms to shut down due to grid congestion, sparking calls for urgent infrastructure upgrades and market reform to avoid wasting clean energy and raising costs for consumers.

- A Lords committee has warned that Energy Secretary Ed Miliband may miss the UK's 2030 clean power target unless he adopts zonal electricity pricing, which would raise bills in the South but encourage renewable investment and reduce grid strain.

Sky News

- The Post Office is exploring asset sales and borrowing to close a 34 million pound gap in its plan to boost sub-postmaster pay by 120 million pounds this year, as part of efforts to rebuild trust after the Horizon scandal.

- Schroders SDR.L has scaled back its role in the LSE-led Capital Markets Industry Taskforce (CMIT) following leadership changes, even as its chair, Dame Elizabeth Corley, joins the board of the London Stock Exchange Group.

The Independent

- Northumbrian Water will pay 15.7 million pounds to fund environmental improvements after Ofwat found it failed to maintain its sewage network, causing excessive storm overflow spills; the funds will come from shareholders, not customers.