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Faith-Based Schools Challenge New VAT Policy Amid Concerns Over Discrimination

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Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King’s School in Hampshire have joined forces with concerned parents to challenge the UK government’s proposed Value Added Tax (VAT) on school fees. The claimants argue that the tax discriminates against faith-based schools and families, potentially making Christian education unaffordable and threatening the viability of many institutions.

In a letter addressed to the government, the schools and parents assert that the VAT imposition breaches human rights laws and fails to adhere to legal standards. They describe the decision to impose VAT on education—historically exempt from such taxes in the UK—as unprecedented and unjust. Their legal team contends that this policy disproportionately affects Christian schools, which typically operate on tighter budgets and charge lower fees compared to larger independent schools.

The claimants further argue that the VAT policy infringes upon anti-discrimination rights outlined in the European Convention on Human Rights, which is integrated into UK law through the Human Rights Act 1998. Caroline Santer, headteacher at the King’s School, criticized the government’s proposal as “ill thought out,” emphasizing that families who opt for faith-based education often forego other luxuries, including holidays and extracurricular activities, to afford tuition.

Parents like Stephen White voiced concerns that the new tax could force them to resort to homeschooling their children, as they are unwilling to enroll them in secular state schools. “It’s an impossible situation,” White said. “We want our children to have a Christian education, but this tax could make that impossible.”

Andrea Williams, chief executive of the Christian Legal Centre, which is supporting the legal challenge, echoed these sentiments. She warned that the VAT charge would make independent faith-based schooling unaffordable for many families and could lead to the closure of smaller faith-based schools.

This legal challenge arises amid broader criticism of the VAT policy from education unions and private school associations, which have urged Chancellor Rachel Reeves to postpone the tax’s implementation scheduled for January. Despite the mounting pressure, the government remains steadfast in its commitment to the tax, asserting it will generate £1.5 billion to bolster state education and hire 6,500 new teachers.

The situation reflects a growing concern regarding the implications of the VAT on school fees for faith-based and smaller independent schools. The Treasury has been contacted for comment but has yet to respond to the unfolding controversy. As the legal challenge progresses, the future of Christian education in the UK hangs in the balance.

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North-South Pay Divide Grows as Workers in the North See More Salary Increases, New Report Shows

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Workers in the northern regions of the UK are increasingly likely to receive a pay rise compared to their counterparts in the South, according to the latest Salary Trends Report 2025 from Totaljobs. The research, which analyzed 17.5 million online job ads and surveyed 3,000 people, reveals a noticeable divide in pay growth across the country.

The report found that 84% of employees in the North East received a pay increase last year, significantly outpacing the 69% of workers in the South East. Other northern regions, including Northern Ireland (83%), Scotland (78%), the North West (77%), and Yorkshire (73%), also saw higher salary growth compared to the South West of England, where just 70% of employees benefited from a pay rise.

Despite this trend, London remains the highest-paying region overall, with 77% of workers in the capital reporting a salary increase. However, Totaljobs suggests that the growing salary increases in the North signal a shifting economic landscape, as cities such as Manchester, Newcastle, and Edinburgh become more attractive to workers seeking cost-of-living advantages.

The report also highlighted the highest-paying sectors in key northern cities. In Newcastle, the top industries for high-paying jobs include Legal (£44.2k average salary), Technology (£43.8k), and Engineering (£42.7k). Belfast’s leading sectors are Technology (£42.5k), Property (£41.1k), and Education (£40.4k), while Edinburgh offers particularly strong prospects in Technology (£49.8k), Insurance (£48.4k), and Construction (£45.2k).

Natalie Matalon, Chief People Officer at Totaljobs, commented, “Pay cheques tend to go a lot further in the North than they do in the South. While there is still a significant North-South divide, cities like Manchester, Newcastle, and Edinburgh are becoming increasingly attractive places to live and work.”

Despite more than three-quarters of UK workers receiving a pay rise last year and signs that inflation is slowing, 56% of employees are still worried about their finances. Workers in Wales (63.7%) and Yorkshire (63.5%) expressed the most concern.

Financial uncertainty is also affecting job market dynamics, with 31% of employees planning to look for a new job in 2025, largely driven by the potential for higher pay. The report found that 72% of job candidates prioritize salary when choosing a new role. Matalon added, “Jobseekers are now only considering roles offering at least a 13% pay rise. With economic uncertainty, employees are less likely to leave their current job without a significant pay increase to offset the risk.”

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Marks & Spencer Rolls Out Biomethane-Fuelled Lorries in Push Towards Net Zero

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Marks & Spencer (M&S) has accelerated its efforts to achieve net-zero emissions by introducing a fleet of lorries powered by biomethane, a renewable gas derived from organic waste such as food, animal manure, and wastewater. The move is expected to reduce carbon emissions by up to 85% compared to diesel-fueled vehicles, while also generating significant cost savings.

The retailer plans to deploy 50 new biomethane-powered lorries to support its food supply chain, transporting ingredients and products between warehouses. Additionally, 30 vehicles will be added to distribute M&S’s clothing and homeware products. Once fully operational, the fleet will make up nearly 10% of the company’s entire transport network, significantly contributing to its sustainability goals.

This initiative is part of M&S’s broader commitment to reach net-zero emissions across its operations by 2030 and extend that target to its entire supply chain by 2040. Last year, the retailer took further steps toward sustainability by investing £1 million in a project to reduce methane emissions from dairy cows, which is projected to cut 11,000 tonnes of greenhouse gases annually.

As UK businesses face increasing pressure to address climate change, M&S’s initiative highlights the retailer’s commitment to leading the charge in green transport. The government and opposition parties alike are urging companies to ramp up their environmental efforts. Labour has pledged to reinstate a ban on the sale of new petrol and diesel cars by 2030, while ministers are considering a new levy on companies that use plastic packaging instead of more sustainable alternatives like paper or cardboard.

Transport Minister Lilian Greenwood has praised M&S for setting an example of innovation in zero-emission vehicles, saying that British companies can play a key role in the transition to a greener economy. Julian Bailey, Head of Group Transport at M&S, emphasized the company’s focus on reducing its carbon footprint, saving energy, and improving operational efficiency through the adoption of green technologies.

M&S’s latest initiative marks a significant step towards sustainable logistics, aligning with its broader commitment to the environment. As businesses across the UK and beyond face mounting pressure to tackle climate change, M&S’s efforts reflect a growing trend of corporate responsibility in reducing environmental impact.

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Amazon Orders 150 Electric HGVs as Part of Plan to Create UK’s Largest Zero-Emission Fleet

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Amazon has taken a significant step toward creating Britain’s largest zero-emission truck fleet by ordering more than 150 electric heavy goods vehicles (HGVs). This move is part of the company’s broader strategy to reduce its carbon footprint and accelerate the adoption of electric transport across the UK.

The tech giant confirmed it has placed an order for over 140 new Mercedes-Benz eActros 600 trucks and eight Volvo FM Electric units. This will add to the nine electric tractor units already in operation within its fleet. Amazon expects to have 160 electric HGVs on the road by the end of 2024. Although the company did not disclose the exact cost of the order, with each electric HGV priced up to £200,000, the total investment could reach around £30 million.

The eActros 600 trucks, which offer a range of 310 miles per charge, are part of Amazon’s ambitious plan to integrate 1,500 electric trucks into its European fleet by 2027. The £300 million investment in electric vehicles is in line with Amazon’s commitment to achieving net-zero emissions by 2040.

At present, there are an estimated 300 electric HGVs operating across the UK. Amazon’s new fleet will represent a significant increase, helping to accelerate the transition to zero-emission trucks in Britain. The company’s move is expected to have a substantial impact on reducing carbon emissions in the logistics sector.

In addition to expanding its electric fleet, Amazon is also ramping up its use of rail transport to reduce its reliance on road freight. The company will begin moving shipping containers along the west coast main line, connecting Scotland, the West Midlands, and London. These goods will then be transferred to local sorting centres for further distribution.

Amazon’s focus on sustainability extends to urban areas, with the company introducing on-foot deliveries in central London. The deliveries will be made using restockable trolleys, and Amazon has partnered with operators of electric vans and e-cargo bikes to further minimize emissions in busy city centres.

Nicola Fyfe, head of Amazon logistics in Europe, emphasized the benefits of these changes, stating, “This is a win for our customers, the environment, and our business. By deploying the country’s biggest order of eHGVs, utilizing the UK’s electric rail network, and launching on-foot deliveries, we are cutting emissions and boosting delivery efficiency.”

The shift toward electric transport and rail freight aligns with Amazon’s long-term sustainability goals and sets a new standard for green logistics in the UK.

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Hiring outside London has dropped significantly after Chancellor Rachel Reeves unveiled her first Budget, leaving regional businesses scrambling to contain costs. The recruitment firm Robert Walters reported a 45pc fall in fee income from operations outside the capital during the final quarter of 2024, while London-based income rose by 3pc. The company attributed the decline to a hiring slowdown triggered by Ms Reeves’s tax measures, including a £25bn increase in employers’ National Insurance contributions. Toby Fowlston, chief executive of Robert Walters, said the surcharge “has been a dent to employers, and obviously that cost is needing to be absorbed.” A trading update revealed that the 30 October Budget rattled business confidence and dampened employers’ hiring plans in the closing months of 2024. The Institute of Directors reported that business confidence fell to its lowest level since the first Covid lockdown in December 2024. Mr Fowlston noted that worker confidence has also taken a hit, as many employees who secured “premium salaries” in the post-pandemic hiring boom are hesitant to switch roles in an uncertain market. “If you put yourselves in the shoes of an employee, they’re thinking: I’m on a good salary, the market is volatile, why would I move?” he explained. He added that Labour’s plans to overhaul UK employment law could amplify the pressure on Britain’s jobs market. “Further increases in costs” for employers would be “critical” for Labour to address in collaboration with businesses, he warned, cautioning that reforms—especially around zero-hours contracts—could have unintended negative consequences.

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