P&O axes crucial ferry route to continental Europe
The shipping giant, which is controlled by the Dubai government, plans to scrap a truck ferry route between Teesport and Zeebrugge in Belgium at the end of the year after deciding that it is no longer viable. The route has been in operation for more than 50 years.
P&O said the closure of the route was tied to its strategy of developing a more 'strategic, flexible and differentiated network' for the North Sea. A spokesman said there will be no job cuts as a result of the move.
Teesport, which is located on the south bank of the Tees in Redcar and Cleveland, is owned by PD Ports, one of the UK's largest ports operators.
Frans Calje, chief executive of PD, told staff on Thursday that P&O had exercised a break clause that would bring its 50-year relationship with Teesport to a close. He said that while the cancellation was 'clearly disappointing' for PD, no posts were at risk.
'Even if there were to be a loss of activity in the ferry zone, which I don't expect, we've got ample opportunities in the port to re-skill people and deploy them elsewhere,' he said.
However Ben Houchen, the Teesside mayor, said P&O's decision to scrap the route was concerning.
'This is a deeply worrying time for PD Ports and the many people whose livelihoods depend on its success. The past couple of years have been turbulent, particularly as other ports in the region have been making real progress,' he said.
P&O is one of Britain's largest ship operators but has faced controversy in the past after sacking 800 staff in 2022 and replacing them with low-paid agency workers.
Last year its Dubai owner threatened to boycott a UK investment summit led by Sir Keir Starmer after then-transport secretary Louise Haigh dubbed P&O a 'rogue operator'.
News of the ferry route closure is a blow to the North East and comes less than two weeks after Sabic, a Saudi chemical giant, revealed plans to permanently shut the Olefins 6 'cracker' facility on Teesside.
Sabic's confirmation of the closure of its plant came just days after Labour unveiled its Industrial Strategy. The move puts about 300 local jobs at risk.
Ensus, which runs a bioethanol plant in Redcar, also warned last month that it faced 'imminent' closure after the UK-US trade deal removed a 19pc tariff on US ethanol imports.
Meanwhile, P&O's decision represents a potential significant setback to the planned sale of PD by its owner, Canadian fund manager Brookfield.
Peel Ports dropped out of the bidding for PD Ports while several infrastructure specialists expected to take part failed to put forward proposals by an April 9 deadline, according to reports.
PD employs around 1,400 people, including 1,200 at Teesport, which handles 25m tonnes of cargo a year, including oil, chemicals, shipments for the offshore wind industry and gypsum used to make plasterboard for the building trade.
In April, PD Ports in April unveiled plans to devote 180 acres of land to developing the £200m Teesport Offshore Gateway, aimed at attracting manufacturing, assembly and supply-chain work tied to North Sea wind farms, though sources said investment was unlikely to be forthcoming until ownership of the company is resolved.
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The Guardian
40 minutes ago
- The Guardian
Father given £1,173 refund from nursery in England after ‘top-up' fees investigation
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BBC News
2 hours ago
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Telegraph
2 hours ago
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Revealed: the full, devastating impact of Labour's VAT raid on private schools
Last summer Sir Keir Starmer made two promises to schoolchildren. The first was a father's promise that his son's education would not be disrupted if he became prime minister. The second was a commitment to levy 20pc VAT on private school fees 'as soon as it can be done' if Labour won the general election. He kept both promises. But while one child was able to complete their schooling unaffected by the new Labour Government, for thousands of private school children it has been a different story. At least 44 private schools have announced their closure as a result of the VAT raid, disrupting the education of almost 6,000 children. Many have entered the state sector, eroding the revenue the Government hopes to raise. All have had their lives upended as a result of Labour's education tax. Six months on since the policy was formally introduced on January 1, critics say all of their worst fears have become reality. Plans to hire 6,500 new state school teachers with the revenue raised from the levy have been watered down. School fees appear to have risen higher than Treasury officials expected, leading to a greater exodus of pupils into the state sector. All of this has raised doubts about whether the policy will really raise the promised £1.7bn by 2030. As head teachers and parents come to the end of the first school year where VAT has been applied to fees, Telegraph Money has assessed the impact of the tax raid so far. Exodus of 16,000 pupils Labour ministers have remained resolute that the VAT levy would not lead to an exodus of private school pupils into the state sector. The Treasury's impact assessment in October 2024 forecast 3,000 pupils would leave across the school year, but this prediction seems to have been a gross underestimate. Last month, the Department for Education revealed that private school pupil numbers fell by more than 11,000 in England following Labour's VAT raid on fees. The comparison looked at overall pupil numbers in January compared with the same point last year. The net exodus of 11,000 pupils – equivalent to one in 50 pupils – masks the true severity because of a slight increase in pupils joining specialist schools. In mainstream independent schools, around 16,000 pupils left. If these pupils were paying average day school fees of £22,146 a year, it equates to a £70m loss in revenue for the Treasury. This estimate would grow significantly if those same pupils joined state schools, which cost the Government around £8,000 a year per child in funding. Tim Barrow, 42, a small business owner from Hertfordshire, is one parent who has decided to remove two of his children from private schools as a result of the VAT raid. He says: 'All this policy has done is target middle-income families, those who have made considerable sacrifices to provide the best education for their children. Those who, frankly, have no margin left to play with. 'And in our situation, it has resulted in two additional places at our local primary school now occupied by my boys. It didn't need to happen. Two other families have lost access to those places and the Government receives no additional tax revenue for my two children.' At least 44 schools close their doors Across the country, private schools have been forced to close as a result of the levy, with many also citing the rises in National Insurance and minimum wage in April as contributing factors. The Telegraph has identified 44 schools that have closed or are set to close as a result of the VAT levy. Dozens more have closed in the past six months but these schools have not attributed their closures to the tax policy. Closures have predominantly taken place at schools charging lower fees, where parents are more price sensitive. St Joseph's Preparatory School, a Catholic school in Stoke-on-Trent that charged £10,245 per year, was forced to close on December 31. Its former headmistress Roisin Maguire said the policy has priced out 'working class' families from private education. She says: 'I'd love to have taken Bridget Phillipson into St Joseph's and said this is a school with one of the lowest fees, these parents are the people who work extra shifts at the hospital in order to afford this because their child has high needs. '[Ms Phillipson] has in her mind Eton and Harrow when she thinks of independent schools, but that's not the picture on the ground of schools who are affected by this.' Historic VAT claims While smaller, more affordable schools have closed, some schools such as Eton and Harrow, counter-intuitively, can make large retrospective claims. These schools are able to recover historic VAT they paid on capital expenditure including buildings and land acquisition over the past 10 years. The Telegraph previously estimated Eton would be able to reclaim around £4.8m from the Treasury based on the school's annual financial statements over the past four years. Prior to the introduction of VAT on fees, schools would not have been able to claim back costs. Labour MP Rachael Maskell accused her own party of creating further inequalities as a result, but it's a point that the majority of the public seem unaware of. A poll last week for stockbroker AJ Bell found 45pc of the public supported adding VAT to private school fees compared to 23pc who opposed the measure. A further 31pc were undecided. Tom Dawson, headmaster at Sunningdale School, a small boys prep school in Surrey, admits there remains a sense of negativity towards the sector from the wider public. 'There is a misconception that they are only available to the super wealthy. That isn't the case, or at least that wasn't the case [before the introduction of VAT].' He says the impact of the policy is already having a 'devastating effect'. He adds: 'We have had schools local to us close down, so our pupil roll for September is very healthy. Where there is less provision, the schools that are able to survive are picking up pupils for the moment. 'But I think we are [only] seeing the first wave and I think it's going to carry on hurting.' The '6,500 new teachers' claim All of this pain is justified, according to the Government, because it will help fund 6,500 new state school teachers in key subjects, according to Labour's manifesto. However, that claim, which appeared prominently on posters and leaflets, is unlikely to bear out. The first crack in the armour came after The Telegraph revealed the funds had not been ring-fenced to support state schools, despite Rachel Reeves saying 'every penny' would be spent on state schools. Since then, Sir Keir has said the money will be used to fund housebuilding targets, raising further doubts about what the policy is for. What is clear is that the target has been rephrased so that these teachers will no longer necessarily be 'new' or teach 'key subjects' and the pledge will omit primary school teachers. Emma Hollis, the chief executive of the National Association of School-Based Teacher Trainers (NASBTT), said the change 'fundamentally shifts the goalposts'. Nicky Hardy, the chairman of governors at a Catholic state school in Reading, says: 'Despite the policy being presented as a way to level the playing field between sectors, there is growing uncertainty about where the VAT revenue is actually going. 'Recent signals suggest the funds are now being redirected into wider public services, such as housing, rather than directly reinvested in education. If the intention was to improve outcomes for children in state schools, we are yet to see any evidence of that.' MPs from all parties have also criticised the pledge, with Parliament's public accounts committee claiming the Government 'lacks a coherent plan' on how it is going to recruit the teachers. Doubts over how much the tax raid will raise Six months on from its introduction, the biggest question mark hanging over Labour's VAT raid is whether it truly will raise £1.7bn. Between January and April, the policy was forecast to raise £450m but whether this target has been reached won't be known until later in the year. There are warning signs that the Treasury will struggle to reach its ambitious target. Its assumption that the policy will raise £1.5bn next year, rising to £1.7bn by 2029-30 is largely dependent on how many pupils move to the state sector. Students fleeing private schools hits the Treasury twice, both in terms of the loss of VAT revenue and the money it then has to spend on an additional state school space. The Treasury has calculated that 35,000 pupils will leave private schools over the course of the parliament, based on an assumption that school fees would rise by 10pc on average as a result of the VAT levy. Analysis by The Telegraph found fees rose by 14pc in January and they are set to rise further this coming September, with fees up 17pc compared with a year ago. Dawson is one of many head teachers who think the sums don't add up. 'I really don't feel the numbers add up at all,' he says. 'The costs that are going to be placed on state schools in my opinion are going to wipe out any gain [the Treasury] think it's going to make. It's not going to lead to increased investment in the state sector because the money isn't there. 'I think it's a policy decision more than an economic decision.' A government spokesman said: 'Ending tax breaks for private schools will raise £1.8bn a year by 2029-30 and help to recruit and retain an additional 6,500 teachers and raise school standards, supporting the 94pc of children in state schools to achieve and thrive.' 'This is a loss. Girls are thriving here' The stage at Queen Margaret's school in York was alive with music and laughter last week as girls danced and sang, writes Natasha Leake. Their performance of 'The Fun Song', the school's long-standing inter-house competition, was more than just a joyful display – it was a poignant farewell. Just days later, the top all-girls boarding school closed its doors forever. It came following a sudden announcement in June that financial pressures, exacerbated by Labour's introduction of VAT on school fees, had forced its closure. 'I sat at the back, and I just had one of those moments of real sadness,' says head teacher Nicola Dudley, two days before the school closed forever on July 5. 'Looking at the girls on stage, they were brilliant. They were having so much fun… They were singing and dancing their hearts out without any inhibitions. And I think that is just the nature of a small all-girls school. I thought, this is a loss; these girls really are thriving here.' Dudley is speaking on the same day that sports day takes place at the school for the last time. After her appointment in September 2024, just 10 months ago, she had hoped to guide the school with renewed energy and passion for all-girls education, which she herself had experienced growing up. 'There is a real feeling of sadness,' she says. 'It's grieving for the loss of a community that's meant so much to so many people, and that's really hard.' Founded in 1901, Queen Margaret's school is set in the idyllic countryside of Escrick Park in Yorkshire. Next year would have marked its 125th anniversary. Described in the Good Schools Guide as 'small but perfectly formed', Queen Margaret's had weathered two world wars, three relocations and 14 head teachers, but could not survive the latest round of financial challenges. 'We, like many independent schools, have been unable to withstand mounting financial pressures following the introduction of VAT on school fees,' the governing body said in their June statement. They also pointed to school numbers falling so much they were 'below the viable level required to keep the school open beyond the current academic year'. One teacher at the school, who asked not to be named, thinks the girls will never find the level of teaching which existed at Queen Margaret's again. 'I remember one student wanted to learn how to play the bagpipes, so the music department got a bagpipes tutor in,' he says, adding: 'We had two Ukrainian girls on full scholarships because of the war in Ukraine.' And for the local economy, the impact of the school's closure is devastating. 'It is easily the biggest employer in this village,' he adds. 'It's like a village disappearing, because of all the gardeners, all the cleaners, all the chefs, all the teachers.' Following the June 13 announcement of the school's closure, waves of disbelief permeated the school community. 'It was a big shock to the teachers, definitely to the girls,' the teacher reflects. 'They were absolutely devastated… a lot of them were crying because they have made lots of friends… nobody likes change, they have to find a new school within weeks.' Further afield, Old Margretian WhatsApp group chats have been buzzing furiously, as alumni have been gathering to discuss the school's closure but also to reminisce about better times. Annabel Sampson, now features editor at Tatler magazine, attended the school from 2000 to 2008. 'It was such a happy, hilarious time,' she remembers. 'An all-girls boarding school in the middle of Yorkshire; we were all so wild and free... it was all about who had the scruffiest ponytail. Everyone was authentically themselves, and that was really celebrated.' Would she ever have imagined it would close one day? 'Definitely not,' she says. 'If someone had said that in 20 years the school would close, you would have said 'that's a joke'. Plus, while I was there new facilities were being developed – a new theatre, and a chapel, so it felt forward-looking.' Back in the head teacher's office, Dudley reflects on the school's closure. No one seems to know what will happen to the school buildings, which will stand empty after it closes and the administrators arrive. 'I find it easiest not to think about what might happen to it because I just want to imagine it as it is,' says Dudley. 'Once people leave the school, the heart has gone.'
