The papers are split between the continuing problems for Labour,the arrest of a potential England manager and the charging of the British teacher in Sudan

The Labour party game-Pass the brown envelope (or who can avoid the blame in the dodgy donations scandal?) says the Independent

Gordon Brown failed to distance himself yesterday from the scandal over Labour's secret donations amid growing speculation that it would soon be the subject of a police investigation.
The controversy moved closer to 10 Downing Street when it emerged that Jon Mendelsohn, who was appointed as Labour's chief fundraiser by Mr Brown, had known for weeks that the property developer David Abrahams gave huge donations to Labour through intermediaries. Labour had previously claimed the only party figure who knew about the arrangement was Peter Watt, who resigned as its general secretary on Monday.

Brown left exposed by donor row says the Guardian

As the public furore over the donations rumbled into a fifth day Downing Street hit back, pointing out that the inquiry set up by Brown on Tuesday would have to identify who first sanctioned the system of proxy donations, which dates back to 2003, and whether associates of Tony Blair were involved.

Hunt for 'mystery benefactor' in Gordon Brown's donations scandal says the Telegraph

Fears are growing within the party that David Abrahams, who hid his identity by using four intermediaries, may himself have been a conduit for another mystery benefactor, after senior Labour figures questioned his personal wealth.

So how many more knew asks the Mail

Harriet Harman's political career was hanging by a thread last night over the £5,000 donation to her deputy leadership campaign by David Abrahams.
And her husband Jack Dromey, the party treasurer, came under attack from senior party figures after claiming he knew nothing about the secret donations scandal.

The Times chooses to lead over the Sudan teacher

Outrage as Sudan charges teddy row teacher

Britain was trying to defuse a potentially explosive diplomatic row with Sudan last night, after a British teacher who allowed a teddy bear to be named Mohamed was charged with insulting Islam and inciting hatred. She is due to appear in an Islamic court today. The alleged crime is punishable by 40 lashes, a six-month jail sentence and a fine.

Islamic fanatics demand teddy bear teacher 'must die' says the Mail

A powerful Sudanese newspaper urged authorities to call a hardline Islamist leader linked to Osama bin Laden to give evidence at her trial, to stress how offensive the case was to Muslims.
Extreme Islamic groups said Mrs Gibbons "must die" and urged Muslims to hold street protests after prayers tomorrow.

Both the Sun and the Mirror lead on the arrest of Harry Rednapp

According to the Mirror

Harry Redknapp left a police station last night after being arrested by detectives probing transfer bung allegations - and insisted: "That's the end of it."
The 60-year-old Portsmouth manager was one of five big football names held yesterday after a series of co-ordinated fraud squad raids.

FRAUD COPS ARREST REDNAPP says the Sun adding that

THE son of arrested soccer boss Harry Redknapp said yesterday: “Someone is out to get my dad.”
Angry Mark Redknapp, elder brother of former Spurs and England player Jamie, told of his outrage after cops probing corruption claims raided his father’s home around 6am.

The Guardian describes on its front page

The long-running investigation into football corruption stepped up a gear last night when it emerged that Harry Redknapp, one of the favourites to take over the job of England football coach, was among five men arrested by fraud squad detectives
Redknapp, the manager of Portsmouth, was held by City of London police as part of its investigation into alleged bungs in the game. Last week, when asked how he felt about the England vacancy, he said: "I would say you'd have to almost be a traitor not to do the England job."

And staying with football the Sun claims

AN England superstar smuggled two girls into the team hotel’s bar to party with players the night before their crucial clash with Croatia.
The Football Association is investigating sensational allegations that England’s failed stars partied at the plush hotel with a sexy model and a pretty student, both 18.

The Mirror reports

Rachel murder charge

Broadmoor inmate Robert Napper, 41, was charged yesterday with murdering model Rachel Nickell 15 years ago.
Police are certain a DNA link has led them to the right man.
The stabbing of 22-year-old Rachel has remained a mystery since Colin Stagg was acquitted of murder in 1992. Last night, relieved Stagg, 44, said: "I have dreamed about this day for years."
Napper, who will appear in court in London next Tuesday, was charged after a microscopic piece of DNA, not belonging to Rachel, was found beneath a patch of her blood.

The Independent reportng that

Fifteen years after the brutal murder of Rachel Nickel on Wimbledon Common shocked a nation and threw the one-time suspect Colin Stag into the limelight, police have announced they are charging another man for the killing amid fresh hope the case could finally be solved.

Iran leader dubs summit a failure reports the Guardian

George Bush formally relaunched Israeli-Palestinian negotiations yesterday, inviting Ehud Olmert and Mahmoud Abbas to meet again at the White House the morning after the Annapolis summit showcased US determination to bring peace to the Middle East despite near-universal scepticism about the prospects.
In the face of Israeli attacks on the Gaza Strip, Hamas rocket fire into Israel, violence in the West Bank and Iranian taunts that his policies had failed, the president was keen to show he was serious about supporting the search for a two-state solution in his remaining 14 months of office.

Palestinian violence brings Bush a reality check says the Times

As Mr Bush held White House meetings with Ehud Olmert, the Israeli Prime Minister, and Mahmoud Abbas, the Palestinian President, 24 hours after they agreed to start immediate peace talks, opposition politicians in Israel were already plotting Mr Olmert’s downfall and Islamic militants in Gaza fired rockets into Israel.
In Jerusalem opposition politicians claimed that Mr Olmert was so politically weakened at home that he would be forced from office next year, destroying any chance he has of delivering a peace settlement by the end of 2008, the stated goal of the parties at Tuesday’s Annapolis conference.

The Telegraph reports that

Slovak police seize 'enriched uranium' in raid

Police have seized 2.2 lbs of radioactive material and arrested two people in Slovakia and one in Hungary, underlining fears in the West that terrorist groups are seeking to build a nuclear device.
The Slovak news agency SITA and its counterpart in the Czech Republic, CTK, citing unconfirmed reports, said that the material was enriched uranium, an integral part of a nuclear bomb.
Martin Korch, a Slovak police spokesman, would not confirm the exact nature of the material but said that it was worth $1 million (£483,000).

Meanwhile the Independent reports

Musharraf yields to pressure and stands down as head of army

Pakistan's military leader, General Pervez Musharraf, ended what's been called the longest striptease in history yesterday when he finally took off his khaki uniform and stood down as head of the army. Today the man who first seized power in a bloodless military coup in 1999 is to be sworn in as a civilian president for a further five-year term.

Madeleine McCann police meet to discuss evidence reports the Times

A review of the scientific evidence gathered in the hunt for Madeleine McCann will consider today whether there is any proof that the missing girl is dead or that her parents were involved in her disappearance.
Portuguese experts will meet scientists from the Forensic Science Service (FSS) in Birmingham to discuss the findings of tests on samples recovered during the six-month investigation.

Police in make or break summit says the Express

England slides down world literacy league reports the Telegraph

Ministers said the drop in standards among 10-year-olds, who took part in the Progress in International Reading Literacy Study, was due to a sharp rise in addictive video games coupled with a decline in reading at home.
Ed Balls, the Schools Secretary, called for parents to read to children for 10 minutes every night, ensuring it was "as much a part of kids' routines as brushing their teeth and having a bath".


Bubble to burst for 30% overvalued homes’ says the Times

The alarming report from the bank’s chief UK economist, which gave warning that the coming property downturn would cause sterling to plummet and force the Bank of England to slash interest rates aggressively, came as official data revealed the fastest fall in London house prices for more than two years.

Blunders in hospitals are linked to 90,000 patient deaths a year reports the Mail

As many as 90,000 patient deaths a year could be linked to hospital errors, according to a study published today.

One in 10 NHS patients is harmed while in hospital and up to half of all blunders could be avoided, researchers found.
Of those who are harmed, around one in 10 errors may have contributed to the patient's death.
The alarming rate of 'adverse events' is revealed in a study of patients admitted to a large teaching hospital in the North of England.

How Britain sells itself: Welcome to the land of slogans reports the Indy

"Welcome to Scotland". As a slogan intended to rebrand and revamp the allure of an entire nation, it seems sadly perfunctory. In their attempt to sex up the road signs greeting travellers crossing the border, the finest minds in Scottish tourism appear to have settled for the absolute basic.
But there was nothing basic about the process by which the slogan was dreamt up: a six-month, highly-orchestrated campaign, led by the SNP, which, in the end, cost £125,000. That's approximately £41,666 – and 60 days – per word. Worth it? The tourist board thinks so. But that's what's funny about destination slogans: they take up vast amounts of blood, sweat and tears and, yet, when they are unveiled, they often seem deficient.

Finally the Telegraph reports on

Huggable urns and coffin candy for 'Kitschmas'

What do you give the Christian who has everything this Christmas? How about a pin cushion sensitively modelled on St Sebastian, the third-century martyr riddled with a hail of arrows.Or for the more technologically minded, how about a Virgin Mary memory stick to store computer data, complete with a flashing "sacred heart"?These are among gifts of questionable taste included in a "12 days of Kitschmas" list unveiled by Ship of Fools, a satirical Christian website.