As part of their promises Labour have included a VAT on Private schools and the end of their business rate relief. This would be a 20% VAT charge for all private schools which they currently do not pay.
Labour expect this policy to raise £1.7bn in funds with which they plan to spend on state schools.
They especially plan to improve mental health support in state schools with talking counselling being available.
Labour have pledged many times that they would focus on state schools and make necessary changes. These include better facilities as well as mental health support for students. Teacher pay is also a huge factor they must consider as teacher strikes are rampant due to low pay and being overworked with no overtime pay.
The Institute for fiscal studies report shows that this plan would raise around £1.3 – 1.4 billion. Whilst this is a huge amount, it only covers 2% of the current state school spending.
There are around 2500 private schools in England and Wales and half of these are registered as charities. This means that those schools can’t operate for a profit and are eligible to tax exemptions. Any money given to the school through donations or student charges are then used for the school operations. These are named as independent schools and they fund themselves with no or little help from the government.
Private schools not being charged VAT also means they cannot charge their suppliers whether that is school supplies, food caterers, exam bodies and more.
The current average price to send your child to private school is £6,944 a term for day pupils and £12,344 a term for boarders. Private school headteachers are concerned that this new policy would cause their fees to increase up to £3000 which parents will have to consider paying or removing their children from the school.
Labour won the election on July 4th which means Rachel Reeves is our new chancellor replacing Jeremy Hunt.
It has been announced that the 20% VAT on private schools will begin on January 1st 2025. This will increase funds for the public sector.
Trying to be informed about finances and the economy can become challenging when abbreviations are used and not explained.
This has become an abbreviation used to reference a point for the health of national and global economies. So, when GDP is growing this will mean workers and businesses are generally better off and the economy is usually stronger than when GDP is declining or not growing.
Real GDP growth moves in waves as the economy changes whether a boom happens or periods of slow growth which could lead to a recession. The UK recently came out of a recession which was a time where two quarters of the year suffered from output declines.
The Office for National Statists (ONS) report that the GDP is estimated to have grown by 0.4% in the three months to April 2024 compared with the three months to April 2023.
This means output is rising and explains the UK exiting the recession with the economy growing again.
This measures the monetary value of final goods and services produced which transfer into the economy. Those products bought by the final user, the consumer which helps to boost the economy. This could be when you shop at the supermarket or go to a theme park. Those businesses make money from your spending as well as having to pay taxes etc. which essentially is paid back into the economy. GDP also includes some nonmarket production, such as defence or education services which is provided by the government
GDP is important as it gives information about the size of the economy and its performance. The growth rate of GDP can indicate how healthy an economy is.
In the year ending March 2024, the ONS reports that the government borrowed £121.4bn. The report showed that the government borrowed £7.3b more than the £114.1b forecast by ONS.
Overall, National debt has reached levels of £22.7 trillion which has been built up over the years.
ONS report found that the public sector spent more than it received in taxes and income in April 2024, this meant it had to borrow £20.5 billion. This was the fourth highest April borrowing since the records began in 1993.
Economists are concerned that public debt could rise even further with the ageing population meaning paying out on pensions is higher than working people paying taxes and with the potential tax cuts to come this could increase debt.
To pay back the debt the government would have to raise taxes in order to come up with the money to pay larger instalments plus interest on their debt.
Spending less on public services such as health, transport and more would also enable the government to pay off more of their debt. However this means that our taxes would be taken away from services to instead primarily pay debt which the money was borrowed for in the first place.
Jeremy Hunt, the current chancellor has stated he has a plan to reduce national debt over 5 years and Rishi Sunak has made reducing debt one of his main promises.
The UK government will borrow money when taxes from working people, companies, business profits and VAT on products does not cover the year of spending. Borrowing money helps to boost the economy so that people can continue spending and so that railways, roads and other infrastructure can usually be built and improved which causes an improved economy.
The government will borrow money from the private sector and purchasers of UK gilts e.g. the bank of England. A gilt is a bond which is essentially a promise that the money will be returned with interest on top. This method leaves little risk that the money won’t be paid back.
As well as usually yearly spending, economic difficulties such as Covid or a surge in oil costs will cause the government to borrow more money. During Covid the economy needed support through borrowing as less people were spending and working people were being paid furlough by the government.
UK debt affects government spending on public sectors and affects where taxpayers money is directed.
When you buy a residential property such as a new home you will have to pay stamp duty, a tax to transfer the ownership of the property. Stamp duty is another part of buying a house you need to be aware of and make sure you know how much you have to pay.
How much stamp duty tax you pay is dependent on the price of the property. Any property under £250,000 is exempt from paying any stamp duty.
Property worth £250,001 - £925,000 there will be a 5% stamp duty charge.
Properties worth £925,000 - £5.1m will have a 10% stamp duty charge.
Those over £1.5m will have a 12% stamp duty charge.
For first time buyers the threshold is £425,000 before having to pay any Stamp Duty, which the conservative party have pledged to maintain If they will the 2024 election.
Stamp duty is a tax which pays for the transfer of ownership of a property and is paid to HM Revenue and customs. You can pay this yourself by submitting a return form or it could be included in your solicitor fees if so, they will do this for you. If you do not pay or you don’t submit your form on time (within 14 days) then you will have to pay penalties with interest.
Stamp duty is tax which goes to the government to be included in their budget which covers sectors such as, transport, roads, police, health and the emergency services.
Today, the Conservative party have announced their manifesto with Rishi Sunak stating their pledges for their time in parliament if they are voted in on July 4th.
The Conservative manifesto lay priority on cutting taxes, improving investment which continues their economic trend of using trickle-down economics, in which cutting businesses and income taxes could see results in a greater economy for the UK.
How much you will need to live on when you retire is a question that can often lead to uncertain answers, and a recent study conduced by pension provider Pension Bee has found that it confuses many.
A pension pot of £250,000 or more is what is needed the pension firm said, to sustain a basic retirement longer than the 15-year average.
Yet fewer than half of the 1,000 adult respondents in the survey across the UK guessed that they would need around this amount.
Nearly a quarter or 23% admitted they were unsure of the total pension pot size which is necessary to achieve their desired retirement income.
While 15% of those questioned said that their pension pot would need to be less than £150,000.
A further 14% who were asked came closer to the £250,000 mark, as they said that a pension fund of between £150,000 and £250,000 would be necessary.
According to the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, a pension pot of around £150,000 would only cover what it regards to be a minimum retirement standard for around a decade.
A pension fund this size would pay for all basic needs, but also would leave little room for any extras or treats.
The figures from Pension Bee suggested that many are underestimating the true cost of retirement by some distance.
These sentiments risk a wider pension short fall, as the average timeframe of retirement is 15 years from the state pension retirement age of 66 alongside an average life expectancy of 81.
Generally there was also a clear lack of agreement among respondents regarding their desired annual income in retirement.
The top three responses said that around an annual income of £15,000 to £30,000, which includes the State Pension if eligible, and other benefits plus income from savings or investments would be required.
This falls short of the PLSA’s ‘moderate’ standard, which calculates that retirees would see their annual food and clothing budget rise, in addition to paying for a two week holiday in Europe, and a long getaway weekend in the UK.
There are many steps that you can take to work out the income that you need in retirement.
If you have gone through some of these stages to check out exactly where your finances are, now you know how much income you might need in retirement and also noted how much you might get, you can look to make a retirement plan.
Some questions you might want to ask yourself is are you looking to retire at a certain age, or gradually retire by reducing your hours.
It’s also important to estimate how much tax you would pay on your pension, as pensions are liable for tax once over the tax free personal allowance threshold, which is currently £12,570.
The Renters’ Reform Bill has been seen by many as a silver bullet to rebalance the relationship between renters and landlords, but it will not be rubber stamped before the general election on 4 July.
Last month before the surprise announcement of the election the bill reached the House of Lords, but later it was pulled when the election was called.
Once an election is made known there is a “wash up” period up to the election day itself, where all parliamentary business is completed before the next government begins its work, and the renters’ bill didn’t make the cut of legislations to be finalised.
What is the Renters’ Reform Bill
Initially the bill was promised by the then Prime Minister Theresa May, and this was a commitment that was approved by her successors Boris Johnson and Rishi Sunak.
The main points of the bill are to scrap section 21 ‘no fault’ evictions, allowing a landlord to evict a tenant without any specific reason.
The bill would have made it illegal for landlords and agents to refuse to rent properties to people who receive benefits or have children.
Also the bill was designed to create a national landlord register through a new property portal.
This will give renters all the information they need to make an informed choice, before entering into a tenancy agreement.
The bill was also set to introduce new grounds for eviction for landlords, who genuinely want to sell their properties or move back in.
Critics complained of bill being watered down
Some leaked amendments to the bill has led to the government being accused of watering the bill down, for example Section 21 and no fault evictions only applying to new tenancies.
While existing tenancies would be forced to wait for the reforms to enter the court system.
The The Renters’ Reform Coalition which includes Shelter and Generation Rent said that the government was committed to Section 21 in name only.
So what are Labour and the Conservatives going to do?
With only a few weeks to go before the election renters will be keeping an eye on the campaign for any promises or pledges that may effect them.
According to a poll tracker by the BBC, Labour remain comfortably ahead of the Conservatives with a 20-point lead of 44% compared to 24% for the current government.
If Labour were to win then this would mean good news for those who are in favour of the bill, as they have said that they would pass renters reform legislation that they say would create a more level playing field for renters and landlords.
The award winning Goodlord, who can manage your tenancy process and are regulated by the Financial Conduct Authority, have said that there are many things you can expect from a potential Labour government.
It can be expected that the Renter’s Reform Bill is likely to dissolved in favour of another path to take on this issue, but Labour are also sure to be steadfast in abolishing Section 21.
In fact the party’s deputy leader Angela Rayner has said that in the event of a Labour victory, the section will be scrapped from day one in office.
Labour have also pledged to “close loopholes that disreputable landlords might use to exploit tenants” following the abolition of Section 21.
While the Conservatives had until 24 May to ensure that the reform bill was pushed through before the polling booths open, and the government has attracted criticism as this did not happen.
There have been no official announcements as to why the bill was not waved through parliament, and there has been accusations that the government caved in to pro-landlord vested interests by not ensuring that the bill was passed.
The bill was introduced to the House of Commons in May 2023, and at the time it was met with suspicion by some on the back benches that it would result in a lack of protection for landlords.
Yet a government spokesperson said that the failure to get the bill passed does not mean that renters have been ignored, and highlighted the fact that the bill was put forward in the first place in order for it to be passed.
This would also suggest that if the Conservatives were to pull off a shock election victory, then at the least a similar commitment to rent reform would be resumed.
Stephenson’s solicitors have said what this means for the future is that whichever party is elected would have to start from scratch, when it comes to developing new legislation around rented housing.
Therefore, it could be a quite a long amount of time before any subsequent bill of similar nature is passed.
When you find yourself in debt and unable to pay it back you could qualify for credit card forgiveness otherwise called, debt relief.
This is when the creditor pardons a debtor from some or all of the outstanding debt.
You can apply for a DRO for free and talk to an advisor to find out if you qualify and if you could receive debt forgiveness.
A DRO usually lasts a year after which time your debts will be written off unless your situation improves.
A DRO could help you with payment plans that work around your situation or could help you get your debt forgiven.
If you are struggling to pay off your debt then find out if you qualify.
If you are thinking about getting a credit card then make sure you are prepared to manage your finances responsibly and take the steps to ensure a perfect record.
It will take around 6 months to build a decent score to obtain credit and for a credit score to be calculated.
From here you should keep building up the score so that lenders will accept any applications, it will take longer to build a great score for lenders to consider.
If you have a low, negative or no credit score then you will be unable to take out a loan or mortgage which can affect you if you need to make large financial moves such as buying a house to get onto the property market.
If you want to get a credit card there are things you can do before and once you get it to help build your score as quickly as possible. Make sure you are financially responsible and using your card as effectively as possible.
You can apply for a credit card when you turn 18 and it could be a good decision to get one as soon as you can to start building your score as it could take years to build a good enough score for lenders to accept you.
If you think you will struggle to handle a credit card then it might be best to avoid it so you don’t get yourself into debt which can easily happen if you aren’t careful. Make sure you know what you can financially handle.
If you are entering the country, unfortunately your score from outside of the UK will not be transferred and you will have to start again, if possible follow the steps above to start building your credit history and give yourself a chance early
The United Kingdom, with its rich history, vibrant cultural scene, and substantial economic opportunities, attracts millions of visitors, students, workers, and settlers each year. Among the various visa options available, the 10-year UK visa stands out for its long-term validity. It provides a significant period for travel, work, study, and residence in the UK without frequent renewals. In this guide, we will navigate the complexities of obtaining a 10-year visa for the UK, covering everything from eligibility criteria to the application process and beyond.
The 10-year UK visa, officially known as the Long-Term Standard Visitor visa, is designed for individuals who wish to enter the UK multiple times over a long period. This visa type is particularly beneficial for those who have ongoing travel needs to the UK, be it for business, family, tourism, or medical reasons.
The primary advantage of securing a 10 year visa UK is the liberty it offers. Holders can enter and exit the UK numerous times throughout the validity of the visa, providing flexibility and peace of mind. This is especially beneficial for those with family ties or business interests in the UK, eliminating the hassle of multiple applications and associated costs.
Financial requirements: Applicants must demonstrate financial stability, showing they can support themselves (and any dependents) during their stay in the UK without accessing public funds.
Criminal record check: A clean criminal record is essential for eligibility. Applicants must disclose any criminal convictions, which will be thoroughly examined.
Health requirements: Certain applicants might need to undergo a tuberculosis test depending on their country of residence. Additionally, the UK does not impose general health examinations but expects applicants not to pose a public health risk.
Other eligibility criteria: Applicants must prove they intend to leave the UK at the end of their visit and can cover their return or onward journey.
Compiling the proper documentation is crucial for a successful application.
Passport and photographs: A valid passport and recent colour photographs in line with UK visa requirements are needed.
Visa application form: The application begins with meticulously filling out the online application form and providing all requested information.
Financial documents: Bank statements, salary slips, or evidence of earnings to prove financial sufficiency are required.
Supporting documents for employment or business purposes: If applicable, documents such as a letter of invitation from a UK company, business registration documents, or proof of employment may be necessary.
Additional documents as per specific circumstances: Depending on the individual case, additional documents might include evidence of the relationship with someone in the UK, previous travel history, or plans for activities in the UK.
The application process involves several steps, starting with the initial application.
Online application or in-person submission: Most applicants will complete their applications online and pay the fee. Some might need to submit their applications in person at a visa application centre.
Biometrics appointment: Following the online application, applicants must book and attend a biometrics appointment to provide fingerprints and a photograph.
Application processing time: Processing times can vary, but applicants should prepare for several weeks. It is advisable to plan and apply well before the scheduled trip.
Receiving the visa decision: Applicants are notified about the decision on their visa application through email or postal mail.
Collection of biometric residence permit: If the stay is longer than six months, a biometric residence permit (BRP) must be collected upon a successful application. This permit is usually collected in the UK.
Understanding visa conditions and responsibilities: Visa holders should familiarize themselves with the terms of their visa, including no recourse to public funds, the ability to enter and exit the UK multiple times, and the need to abide by UK laws and regulations.
● Common pitfalls to avoid: It's essential to avoid common mistakes such as submitting incomplete applications or failing to provide sufficient evidence of financial stability.
● Advice on preparing a robust application: An application can be strengthened by ensuring that all information is accurate, providing comprehensive documentation, and demonstrating clear ties to one's home country.
● Understanding the visa validity and renewal process: Familiarize yourself with your visa's conditions, including its expiration date and the process for extending your stay if needed.
Obtaining a 10-year visa for the UK requires careful planning, meeting eligibility criteria, compiling the necessary documentation, and following the application process diligently.
Applying for a long-term UK visa is a significant undertaking that, if successful, offers incredible flexibility and opportunities for travel, work, and family connections. By following this guide closely, you're well on your way to preparing a solid application. Best of luck in your journey towards securing your 10-year visa to the UK!
There are regulations in place to ensure political parties stick to spending limits and a fair budget for their campaigns.
Each party must submit their spending returns to the Electoral Commission which they have 3 months to submit or 6 months if they spent over £250,000 during the campaign period.
Each parties’ case is investigated and the Electoral Commission can impose fine of up to £20,000 if budgets have been breached. The limits apply during the 365 days before the polling day which this year is, July 4th.
Regulated spending includes various campaign methods such as, paid ads, broadcasts, leaflets and more.
In November 2023 spending limits increased to accommodate for inflation setting the budget to £54,010 for each constituency that they contest.
Sky News reports that the Conservative party have spent £50,200 since May 22 and Labour have spent £250,350. Labour have spent around 5 times more to bring exposure and awareness to their party and bring in the votes.
Paid adverts on social media such as Facebook and Instagram have been in full effect with labour outpacing all other parties on this campaign method. Digital campaigning has raced ahead in effectiveness with further reach and wider audience to view the campaigns. The political parties have taken to posting on various social media platforms, largely pitting against the other parties.
Spending more doesn't guarantee a win but party campaigns have gone full steam ahead for the parties and reports say that the Conservative are holding back their budget. Does this mean they have something planned to come?
