EU Implements New Border Rules: Passport Stamps Scrapped, UK Unveils Homebuyer Tax Rebate, Mobile Payments Hit New Record
- TBA
- 7 days ago
- 5 min read
Conservatives pledge £5,000 tax rebate for young home buyers
As part of its new “Reward Work” initiative announced last week, the Conservative Party has pledged to offer a £5,000 home-buying tax rebate to young people when they secure their first full-time job. The proposal also includes allowing National Insurance contributions to be redirected into long-term savings accounts.
In addition, the plan seeks to block individuals with “mild mental health conditions” from claiming benefits, and to reduce the civil service workforce by approximately 132,000, returning it to 2016 levels — a target first set under Boris Johnson’s government.
Speaking at the Conservative Party Conference in Manchester, Shadow Chancellor Mel Stride stated that funding for these policies would come from £47 billion in public spending cuts over five years, targeting welfare, the civil service, and foreign aid budgets. The breakdown is as follows:
£23 billion from welfare reforms;
£8 billion from reducing the civil service from 517,000 to 384,000 employees (back to 2016 levels);
£7 billion from cuts to overseas aid;
£3.5 billion from ending hotel accommodation for asylum seekers;
£4 billion from restricting welfare and social housing to British citizens only;
£1.6 billion from scrapping environmental subsidies, including grants for heat pumps and electric vehicles.
The Conservatives also promised that, if they win the next general election, they will abolish business rates for high street shops and pubs, a measure expected to cost £4 billion per year and benefit around 250,000 small businesses.
The Institute of Economic Affairs (IEA) welcomed parts of the plan but warned the party not to ignore the “obvious” challenge of age-related spending, such as pensions. IEA Executive Director Tom Clougherty noted: “Ultimately, no political party can balance the books solely by cutting the spending its supporters dislike.”
In response to the Labour government’s proposed property market reforms — which would legally require sellers and estate agents to provide more upfront property information to reduce moving costs — the Conservatives argued that Labour ministers are merely “pulling quick levers for quick savings”, while their party is focused on “fundamental reform.”
The EU’s new border rolls out, will replace passport stamping at border control
Starting October 12, the European Union officially launched its new Entry-Exit System (EES), aimed at fully digitising border management. The system covers all border points across the Schengen Area — including all EU member states except Ireland and Cyprus, as well as Norway, Iceland, Switzerland, and Liechtenstein.
This means that UK passport holders and other non-EU travellers entering the Schengen Zone will now have their biometric data (fingerprints and facial images) recorded, replacing the traditional passport stamping process.
The EES digitally logs travellers’ entry and exit information. First-time visitors from third countries (non-EU nations) must register their passport details, fingerprints, and facial photo at a self-service terminal at the border. These records will be securely stored for future border checks.
On subsequent trips, travellers can pass through more quickly using biometric verification. Border officers may still request proof of accommodation, travel funds, insurance, and return tickets. Children will also be checked, but those under 12 years old are exempt from fingerprint collection and only undergo facial scanning.
In the UK, the EES will apply to Port of Dover, St Pancras International, and Folkestone, where passengers must complete registration before departure. Once cleared, travellers will not need further checks upon arrival in mainland Europe.
The system will be rolled out in stages from October 12, 2025, and is expected to fully cover all external borders by April 10, 2026. In total, the EES will apply to 25 EU and Schengen countries, including Spain, France, Germany, Italy, the Netherlands, Belgium, Portugal, Switzerland, Norway, Iceland, and Liechtenstein. Ireland and Cyprus will continue using traditional passport stamping.
Each Schengen country may decide how and when to deploy the system. So far, Sweden and Hungary have confirmed participation.
Originally scheduled for an earlier launch, the system was delayed last year amid concerns it could disrupt passenger flows and logistics. Following a year of testing and adjustments, the EU has now confirmed full implementation.
It’s worth noting that EES is separate from the European Travel Information and Authorisation System (ETIAS), which will take effect by the end of 2026.
EES is a border registration system,
ETIAS is an entry authorisation system.
Once ETIAS launches, non-EU and non-Schengen travellers (including Britons) will need to apply online for travel authorisation before entering the EU.
Brits opt for mobile phone payments as cash usage declines
According to the latest UK Finance “UK Payment Markets 2025” report, the use of cash in Britain fell below 10% of all transactions for the first time in 2024 — a historic low. Meanwhile, half of all UK adults now use mobile devices for contactless payments, marking a major shift toward a cashless society.
The report highlights that Britons are increasingly relying on phones and smartwatches to manage finances and make daily purchases. Last year, 57% of UK adults were registered for a mobile wallet (such as Apple Pay or Google Pay), up sharply from 42% in 2023. Half of these users made at least one mobile contactless payment per month — the first time such a large share has used mobile payments regularly.
Around 30% of UK adults now live a “mostly cashless life”, using cash no more than once a month. Approximately 16.9 million people met this standard last year, while just 1.2 million remain primarily cash-dependent.
By age group:
Among those 65 and over, 19% rarely use cash.
Among 16–24-year-olds, that figure rises to 40%.
Income also affects payment behaviour:
46% of people earning £65,000 or more use little or no cash;
Only 22% of those earning under £20,000 do the same.
Cards — physical or mobile — remain the dominant payment method, accounting for 64% of all transactions. 62% of debit card and 55% of credit card payments are contactless. The Buy Now, Pay Later (BNPL) sector is also expanding rapidly: one in four UK adults used BNPL services in 2024, up from 14% the previous year.
UK Finance forecasts that by 2034, card payments will still dominate (around 67% of all payments), while mobile wallets will continue to grow and reach broader age groups.
Emerging payment technologies — such as Pay by Bank, which allows consumers to pay merchants directly from current accounts — are expected to become more common, further reducing reliance on traditional cards.
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