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A recruitment and retention crisis in the armed forces will grow unless the government exempts military families from paying VAT on private school fees, insiders have warned.

Sky News understands that more and more families are raising concerns internally about the “damaging” policy after the chancellor failed to offer sufficient protections in her budget.

They say a promise to increase an allowance funded by the Ministry of Defence (MoD) that helps to cover the cost of school fees does not go far enough, and that highly experienced personnel – officers and other ranks – will quit if Rachel Reeves does not perform a U-turn.

Such a loss in skills would weaken UK defences at a time of rising threats, the insiders say.

A soldier with a child at boarding school, who asked to remain anonymous, said: “I will have to leave military service, as I will not inflict another school move on my child.”

He said: “On one side, the chancellor wore a poppy during her budget announcement, and then proceeded to deal a damaging blow to members of His Majesty’s Armed Forces by not including a simple exemption.”

Defence Secretary John Healey joins serving military personnel to hand out poppies and collect donations for the Royal British Legion Appeal at Victoria Station, during London Poppy Day. Picture date: Thursday October 31, 2024.
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Defence Secretary John Healey joins serving military personnel to hand out poppies. Pic: PA

An army spouse, who asked for her identity to be protected because her husband is serving, said: “This is people’s children. This is people’s money in their pocket.”

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She told Sky News: “If there is a nice job offer outside the military… that is going to look way, way more attractive than it did a few months ago. The army is in a recruitment and retention crisis, so why would you do something like this?”

Offering a sense of the scale of the potential impact, the Army Families Federation, an independent charity, said nearly 70% of families that shared evidence with it about the policy said without protection from the full cost of the VAT they would consider quitting the service.

The mobile nature of military life – with postings around the UK and overseas – often requires service personnel to move every few years, with any children they have forced to relocate with them, transiting in and out of different schools.

To protect against this disruption some parents decide to send their kids to private school – often to board.

More than 2,000 of these personnel – the majority of them in the army – claim money from the MoD to help cover the cost of private school fees.

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The Continuity of Education Allowance (CEA) funds up to 90% of tuition fees but families must pay a minimum of 10%.

Many of those who take this option will have agonised over the affordability of the portion they will still pay, which can amount to tens of thousands of pounds per year.

They will now have to pay more to cover the VAT on this portion of the bill – or else pull their children out of school, a nightmare option, especially for those serving abroad.

In addition, some other military families that do not qualify for the education allowance – which is only allocated under a very strict criteria – still opt to put their children into boarding school to ensure the continuity of their education at a single location.

They will have no protection from any of the VAT burden.

James Cartlidge. Pic: PA
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James Cartlidge. Pic: PA

James Cartlidge, the shadow defence secretary, said he has received a lot of messages from impacted families and is urging the government to give them an exemption.

“The emails I’ve had are saying: I’ve got to choose between my child and serving my country,” said Mr Cartlidge, who previously served as a Conservative defence minister.

“The government really needs to respond to this quickly.”

An MoD spokesperson said: “We greatly value the contribution of our serving personnel and we provide the Continuity of Education Allowance to ensure that the need for the mobility of service personnel does not interfere with the education of their children.

“In line with how the allowance normally operates, the MoD will continue to pay up to 90% of private school fees following the VAT changes on 1 January by uprating the current cap rates to take into account any increases in private school fees.”

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Assisted dying opponents believe they have the momentum – as Streeting criticised for ‘overstepping the mark’

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Assisted dying opponents believe they have the momentum - as Streeting criticised for 'overstepping the mark'

Labour MPs who are opposed to legalising assisted dying believe the momentum is swinging behind their side of the campaign, Sky News has learnt.

MPs are currently weighing up whether to back a change in the law that would give terminally ill people with six months to live the choice to end their lives.

At a meeting in parliament on Wednesday, Sky News understands Labour MPs on the opposing side of the argument agreed that those who were undecided on the bill were leaning towards voting against it.

One Labour backbencher involved in the whipping operation for the no camp told Sky News: “The undecideds are breaking to us, we feel.”

The source said that many of those who were undecided were new MPs who had expressed concerns that not enough time had been given to debate the bill.

“They feel they are too new to be asked to do something as substantive as this,” they said.

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Issues that were being brought up as potential blocks to voting for the legislation include that doctors would be able to suggest assisted dying to an ill patient, they said.

The source added: “We were elected to sort the NHS out rather than assisted dying.

“And there is no going back on this – if any doubt, you should vote it out.”

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Labour MP Kim Leadbeater discusses End of Life Bill

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, is due to be debated on 29 November, when MPs will be given a “free vote” and allowed to vote with their conscience as opposed to along party lines.

In a recent letter to ministers, Cabinet Secretary Simon Case said the prime minister had decided to “set aside collective responsibility on the merits of this bill” and that the government would “remain neutral” on its passage and the matter of assisted dying.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The bill will also include punishments of up to 14 years in prison for those who break the law, including coercing someone into ending their own life or pressuring them to take life-ending medicine.

She has also argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

However, several cabinet ministers – including Health Secretary Wes Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Mr Streeting, who has said he intends to vote against the bill owing to concerns that people might be coerced into taking their own lives, announced a review into the potential costs of assisted dying if it is implemented.

The health secretary warned that a new assisted dying law could come at the expense of other NHS services – and that there could be “trade-offs” elsewhere.

Sky News understands Ms Leadbeater has said she is “disappointed” by Mr Streeting’s comments about the bill.

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Tory MP: ‘Impossible’ for assisted dying bill to be safe

And another Labour MP who is voting for the legislation told Sky News they believed Mr Streeting had “overstepped the mark”.

“I think it’s a bit of a false exercise,” they said.

“It’s definitely going to raise eyebrows – it’s one thing to sound the alarm but he is purposefully helping the other side.”

The MP said that while it did feel “the momentum is moving away from us, a lot of it will come down to the debate and argument in the chamber”.

“Some of the scaremongering tactics might backfire,” they added.

“It’s still all to play for but it’s undoubtedly true the other side seems to be making headway at the moment.”

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A source close to Mr Streeting told Sky News: “Wes has approached this issue in a genuine and considerate way, setting out his own view while respecting others’ views.”

As a private member’s bill that has been put down by a backbencher rather than a government minister, the legislation will not receive as much time for consideration as a government bill – but proponents say it can always be amended and voted down at later stages.

At Prime Minister’s Questions on Wednesday, Tory MP Sir Alec Shelbrooke questioned whether enough time had been set aside to debate the bill and urged Sir Keir Starmer to allow two days, or 16 hours, of “protected time” to “examine and debate” the legislation before the vote.

Sir Keir replied: “I do think there is sufficient time allocated to it but it is an important issue.”

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Assisted dying: Wes Streeting orders review into potential costs of changing the law

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Wes Streeting orders review into potential costs of introducing assisted dying

Health Secretary Wes Streeting has ordered his department to carry out a review of the costs of potentially changing the law to legalise assisted dying.

Mr Streeting, who intends to vote against a landmark bill on the issue, has warned that a new assisted dying law could come at the expense of other NHS services if it is implemented.

It comes as MPs weigh up whether to vote for a change in the law when given the opportunity to do so later this month.

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, would give terminally ill people with six months to live the choice to end their lives.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

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Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

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They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The Labour MP has argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

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MP discusses End of Life Bill

However, several cabinet ministers – including Mr Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Announcing the review, Mr Streeting said: “Now that we’ve seen the bill published, I’ve asked my department to look at the costs that would be associated with providing a new service to enable assisted dying to go forward, because I’m very clear that regardless of my own personal position or my own vote, my department and the whole government will respect the will of parliament if people vote for assisted dying.”

Ms Leadbeater has said she is “disappointed” with Mr Streeting’s comments – telling The House magazine the health secretary’s comments “suggest he hasn’t read the bill”.

While the health secretary has warned of the potential cost downsides for the NHS, his critics have pointed out there may be potential savings to be made if patients need less care because they choose to end their own lives – something Mr Streeting branded a “chilling slippery slope argument”.

“I would hate for people to opt for assisted dying because they think they’re saving someone somewhere money – whether that’s relatives or the NHS,” he said.

“And I think that’s one of the issues that MPs are wrestling with as they decide how to cast their vote.

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‘Impossible’ for assisted bill to be safe

“But this is a free vote – the government’s position is neutral.”

Speaking to reporters after delivering a speech to the NHS Providers conference in Liverpool, Mr Streeting said there were “choices and trade-offs” and that “any new service comes at the expense of other competing pressures and priorities”.

“That doesn’t mean people should vote against it on that basis,” he said.

“People need to weigh up this choice in the way that we’re weighing up all these other choices at the moment.”

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MPs will debate and vote on Ms Leadbeater’s Private Member’s Bill on 29 November, in what will be the first Commons vote on assisted dying since 2015.

The government has given MPs a “free vote” on the issue, meaning they will be able to vote according to their conscience and without the pressure to conform to party lines.

In 2015, a bill by former Labour MP Rob Marris that would have made it legal for the terminally ill to end their lives was defeated in the Commons by 330 votes to 118.

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Government to introduce voluntary levy on stadium and arena tickets to support grassroots venues

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Government to introduce voluntary levy on stadium and arena tickets to support grassroots venues

The government is set to introduce a voluntary levy on tickets for concerts at stadiums and arenas to help fund grassroots venues.

Ministers expect the music industry to push through their proposals “as soon as possible” for shows next year, the Department for Culture, Media and Sport (DCMS) said.

The government argues that an “industry-led” levy “within the price of a ticket” would be the quickest and most effective way for revenues from the biggest shows to help the grassroots sector.

“Ministers have made clear that they want to see a voluntary levy come into effect as soon as possible for concerts in 2025, with clear communication to fans on the purpose of the levy and the benefits it will bring to the grassroots sector,” the DCMS said.

Smaller venues have struggled in recent years after the pandemic and rising inflation.

Some bands have already started to donate part of their ticket sales to help fund smaller venues.

Enter Shikari gave £1 of every ticket sold for their 2024 arena tour to the Music Venue Trust while Coldplay have also pledged to donate 10% of profits from their upcoming UK stadium tour to support smaller venues.

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Creative industries minister Sir Chris Bryant said: “Grassroots music venues are one of the UK’s most valuable and yet undervalued cultural assets.”

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Coldplay in concert at the Manchester Ethiad Stadium as part of their Music Of The Spheres World Tour. Picture date: Wednesday May 31, 2023.
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Coldplay in concert at the Manchester Ethiad Stadium last year. Pic: PA

He continued: “They are where bands try out new material, where whole new genres are born, where musicians experiment and where audiences get to experience the raw power of live music.

“These venues support thousands of jobs and are a vital part of our local communities.

“Without a flourishing grassroots music industry the rest of our music industry will wither.”

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Sir Chris added: “That is why I am urging the industry voluntarily to introduce a ticket levy on the biggest commercial players, to help ensure the health and future success of our entire live music industry for decades to come.”

The cross-party committee on culture, media and sport, which initially put forward the proposal, welcomed the ministerial support but said a “firm deadline” is needed on how long the industry has to take action “before the government itself steps in”.

The committee said it would hold a hearing with the sector in six months’ time if no major progress is made.

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