The UK government has announced it will apply VAT to private school fees from January 1 next year as it listed a string of infrastructure projects worth billions it will scrap to help the country's public finances.
The chancellor outlined how she intended to fill a £20 billion black hole in the public purse in her first major economic update since Labour won the election.
Parents hoping to pre-pay next year's fees to avoid the rise will still be charged.
Fees invoiced or paid on or after 29 July 2024 that relate to the school terms after 1 January 2025 would also be subject to the tax, a government release said.
Labour outlined its manifesto pledge to introduce a 20 per cent levy on school fees. It will pay for the training of thousands of new teachers across the public sector, it says.
However, the move will add thousands more to private school fees for parents. Fees are now more than £16,000 per annum on average at day schools, rising to more than £40,000 at boarding schools.
Rachel Reeves said that infrastructure projects worth billions would be cancelled in order plug a £22bn “hole” in public finances.
Ms Reeves was presenting to parliament an audit of spending which she had asked the finance ministry to provide following the Labour Party's July 4 election victory.
Speaking in parliament, Ms Reeves said “immediate action was needed in order to address the issues that had been “covered up” by the previous Conservative government.
She cancelled or postponed road and hospital building projects, restricted winter fuel payments to just the poorest pensioners and warned that “difficult decisions” on tax would be required in her first budget on October 30.
The Chancellor accused her Conservative predecessors of covering up the scale of immediate spending pressures on the public purse.
The squeeze on spending is aimed at finding £5.5 billion of savings this year and £8.1 billion next year.
But predecessor Jeremy Hunt claimed about half of the “black hole” in spending was due to her deciding to give above-inflation pay rises to millions of public sector workers.
In a hint that taxes may have to increase, Ms Reeves said: “I have to tell the House that the budget will involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax.”
Road projects that will be cancelled included a £1.7bn tunnel under the Stonehenge monument and a major bypass near Arundel, West Sussex.
As part of her announcement, Ms Reeves said that she had agreed a pay deal with junior doctors following continuing strike action, with reports that the pay rise could be as much as 20 per cent over two years.
She also said that the projected overspend by the previous Tory government on the asylum system, including the “failed” Rwanda plan, was more than £6.4 billion for this year alone, she added.
A budget would be delivered on October 30. She said that this would will involve “difficult decisions” on spending, welfare and tax.
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Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
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Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
