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‘It was drug-ridden back then — but a wonderful place’

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When the ceramicist and author Peter Schlesinger moved to New York nearly half a century ago, he was told not to live south of 14th Street. His partner Eric Boman needed an apartment large enough to house a studio for his fashion photography, but Eileen Ford, head of a leading agency, told them it was too dangerous to send her models into Lower Manhattan.

SoHo was too expensive, but many of the old industrial premises further north, in the Ladies’ Mile near the Flatiron district, were empty and not yet rezoned for residential use. There the couple chose an entire unpartitioned floor in a former girdle factory, with other impoverished artists for neighbours. “Even on lower Park Avenue, you had to be careful going into the clubs at night,” Schlesinger, now 76, recalls. “It was drug ridden — but a wonderful place.”

He says the “artsy people” have since moved out, and fashion shoots have shifted from photographers’ own studios to more grandiose venues. Through his large windows, he can he see the nearby penthouses of Rupert Murdoch and Jeff Bezos. Many other wealthy inhabitants live in the conversions of old buildings and the modern towers that have risen up around his home.

A large room, with large windows, divided into areas with partitions. The furniture is mid-century, and there is a pottery collection displayed on a table, beside a table lamp. To one side is a column, which has been plastered to make it appear classical
The apartment is furnished with mid-century pieces, including a Bruno Mathsson chair and Alvaro Aalto stool. Schlesinger made the plastered column to hide the ‘too thin’ original iron pillar

Today, the apartment is more conventionally partitioned, with two large studios at one end and an airy, high-ceilinged living area at the other. In the middle stands one of the factory’s original iron pillars, which Schlesinger considered “too thin” and enveloped in plaster in the form of a white classical ribbed column. “It was my first sculpture,” he says.

Schlesinger, a native Californian, came to public attention in the late 1960s when, as the lover of the British artist David Hockney, he was immortalised (clothed) in Portrait of an Artist (Pool with Two Figures) and (naked) in Peter Getting Out of Nick’s Pool. The 1973 film A Bigger Splash, directed by Jack Hazan, is a semifictional film about their break-up.

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The couple met in Los Angeles and then moved to the UK, where Schlesinger studied at the Slade School of Fine Art and went on to forge a career as a photographer, artist and ceramicist. Two of his early paintings hang on the walls of the apartment: a friend bathed in light in his North Kensington flat; and two vases on a table, a hint at his passion for pottery, now his primary focus. Today he is represented by Tristan Hoare in London and David Lewis Gallery in New York, and his work is held in collections including Farnsworth Art Museum, and the Manchester Gallery of Art.

His first book of photographs, A Checkered Past, published in 2003, recounts with colourful candour the social whirl of 1960s and 1970s London. He still loves the stories, describing the dinner where he first met Boman following the premiere of Visconti’s Death in Venice; they were at Mr Chow in Knightsbridge, with Fred Hughes, Andy Warhol’s business manager, Manolo Blahnik, the Spanish shoe designer, and Paloma Picasso. “Those were very formative years, and they remain very close friends. I speak to Manolo every week to gossip.”

A mid-century styled interior space that includes a mustard-yellow leather couch, a rug, a small, oval coffee table with thin metal legs and a marble top. The screen is painted with leaves and hills, in pale greys, blues and greens. The painting is of ruined classical buildings
The screen was made by Schlesinger; the painting over the door is by his late husband, Eric Boman
A dining area with a large brass chandelier, a round table with a polished top and wooden chairs
Edward Wormley dining table, chairs by J L Moller and two sculptures by Schlesinger

Schlesinger and Boman soon became a couple, and after a few years decided to leave London. “Rents were cheap but finding a place was difficult; buying was very expensive and it was hard to make a living. In 1978 everyone was moving to New York, which was bustling.”

Their partying continued in their adopted city. Schlesinger tells of attending the opening of the Limelight Club with Warhol. “He was very friendly, not as he is sometimes portrayed. But I was shy. He liked Eric, who loved talking and telling stories.” He holds up a faded telex he came across recently and has had framed: an invitation to Studio 54 from Warhol, with Blondie in attendance.

Boman, with whom Schlesinger lived until his death in 2022, began working for Vogue, Vanity Fair and House & Garden. One of his photos of Brooke Shields hangs in the hallway, and Boman’s former studio is piled with albums, boxes and photographs. “It’s a mess,” says Schlesinger, who is hiring an archivist to sort through it. In the corridor between their two studios, he opens a cupboard to reveal shelves of photo albums from 1968 until 1992 — some reproduced in a second book published in 2015, A Photographic Memory 1968–1989. “It was very different then. You can’t take anonymous pictures any more. Everyone is posing for Instagram.”

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The bond between them is reflected in the decor. Boman’s Murano glass pieces and Schlesinger’s Poole pottery collection are on display. He recalls the fun they had rummaging in flea markets in London, and later, in New York, developing a taste for mid-century furniture. The house now has several pieces by American designer Edward Wormley.

A desk, covered in papers and stationary and clutter, with shelves above. On the shelves are books and magazines, and a collection of shells
Schlesinger’s desk, where a cowhide box from his aunt sits among his papers

Schlesinger has moved his own desk into his late partner’s studio to create an office. On a shelf, he has placed a large vase that Boman had wanted him to make, decorated with the daisies he loved.

He continues to work in his own studio next door. Here, two partially-completed pots are wrapped up. Slabs of fresh clay from Sheffield, Massachusetts, are ready to be bound with “slip” from a jar nearby. He is proud of making his own glaze from ash, and of a technique to mould handles directly into the form rather than attach them separately. His pots mix ancient tropes with modern wit — playing with colour and pattern. 

He first took lessons from potter friends in 1987, and now makes two or three works at a time, some of which are up to a metre high. For a while, it was more than a creative pursuit: “It was therapy — or an escape when Eric was ill.”

For a number of years, he struggled to find a dealer and used a small kiln in the studio “until I set the sprinklers off and soaked the apartments below.” A grant from the Louis Comfort Tiffany Foundation in the mid-1990s enabled him to buy a larger kiln and create more ambitious pieces.

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A shelving unit with a variety of ceramic sculptures and vases. Beside it, there is a framed magazine cover on the wall with an image of a young blond man’s face
Schlesinger’s sculptures, with a framed cover of Men’s Bazaar featuring Eric Boman’s 1981 self-portrait
Potter’s tools shown in close up — a variety of wooden brushes, scrapers and other implements
Schlesinger’s sculpture tools in his studio

The kiln lives at Schlesinger’s second home on Long Island, a 19th-century house at Bellport. He travels there to fire his ceramics and stays for four months every summer. “I wanted a real home. We both wanted a garden.”

He sits down on a sofa in the living room, its green, grey and yellow colours matching — “perhaps too closely” — those of his vast painting behind, of the Bellport garden, showing its plants, a small pond and a yellow fish that swam in it “before the egrets got them”.

While this living area is spotless and almost museum-like (partly as he is preparing for guests), his bedroom feels more personal. A painting by Hockney from his pulp paper period hangs on a wall, the name “Peter” written in large letters beneath Schlesinger’s face; opposite are two small sketches of him, also by the British artist.

There are photos of his mother, and also of Cecil Beaton. There are images of novelists and playwrights Stephen Spender and Christopher Isherwood, whom he and Hockney got to know well on the West Coast, and a painting of a youthful Jack Larson, the actor and librettist. 

An older man in jeans and a blue top stands on a stepladder in a room with bare plaster walls, surrounded by potter’s tools and buckets. Beside him is an unfinished clay pot
Schlesinger in his studio

He says he does not have a favourite possession, although when pressed he cites a series of Japanese antiques collected by his aunt after the second world war, including two lamps and Imari chinaware. “Growing up, I would explore her closets full of antique objects,” he says. “That is where my love of collecting came from”.

He also picks up a solid metal “High energy bar” artwork, a gift from the artist Walter De Maria shortly after he moved to London: a symbolic reminder that, while he continues to be a highly productive artist in the present, the past is always held close.

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Peter Schlesinger is showing at Tristan Hoare Gallery at PAD London, Berkeley Square, until October 13. padesignart.com

Andrew Jack is global education editor for the Financial Times

Find out about our latest stories first — follow @ft_houseandhome on Instagram

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We live in newbuild ‘ghost town’ with rows of identical houses but NO shops… developers ‘forgot to build high street’

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We live in newbuild 'ghost town' with rows of identical houses but NO shops... developers ‘forgot to build high street’

FED-UP locals living in a new build “ghost town” have slammed developers that left them without a high street.

There is no post office, no newsagent, no greengrocers and no convenience store in Cambourne, a few miles from Cambridge.

The centre of Cambourne, Cambridgeshire, has been described as a 'ghost town'

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The centre of Cambourne, Cambridgeshire, has been described as a ‘ghost town’Credit: ROB WELHAM / McLELLAN
Locals Fiona Smith, 52, with daughter Caitlin, 13, told the Sun about their experience living without high street amenities

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Locals Fiona Smith, 52, with daughter Caitlin, 13, told the Sun about their experience living without high street amenitiesCredit: ROB WELHAM / McLELLAN
Despite bus stop signs appearing in the town, no buses seem to have been directed through, according to one resident

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Despite bus stop signs appearing in the town, no buses seem to have been directed through, according to one residentCredit: ROB WELHAM / McLELLAN
The area has no greengrocers, convenience store or post office

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The area has no greengrocers, convenience store or post officeCredit: ROB WELHAM / McLELLAN

And although bus stop signs were erected in West Cambourne, no buses ever stop there.

The second pub locals were promised never materialised either.

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Instead, most of the High Street is just an open space covered in grass, with a café, building society and a Turkish barbers at one end and few houses clustered at the other.

Now instead of the shops planned when work began in the 1990s, there are proposals to build another 30 townhouses and 87 flats there.

“It’s sh*t,” said one angry man out walking with his young daughter at the weekend. “Absolute sh*t.

“They just want to make money by building more houses and forget about amenities for the people who live here.”

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Danny Dove, 78, sat enjoying a beer outside the Monkfield Arms, the town’s only pub, agreed.

“Apart from this place there’s not much to do here,” he said. “It’s a bit of a ghost town really.”

Seyi Daramola, 44, who had spent the afternoon shopping in Morrisons supermarket with his 11-year-old daughter Dara, reckoned the town lacks soul.

“We do need some more shops,” said Seyi, who recently moved to Cambourne from north London. “It would add a bit of character to the town.”

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Mum-of-three Gaynor Cooke, 61, who moved to the town in 2003, added: “There have been a lot of broken promises.

Inside ghost town with homes left empty for more than a century over dark past

“We were supposed to have a market square, but nothing happened with that.

“There was even talk of a golf course, but we didn’t get that either.

“Instead we just ended up with a load of estate agents!

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“It would be nice to have some small, unique shops, if only a greengrocers. A bit of variety would be lovely.”

Fiona Smith, 52, out with her 13-year-old daughter Caitlin, said: “I’d like to see another pub and a second supermarket rather than more houses.

“A couple more restaurants wouldn’t go amiss, perhaps even a cinema. And we really do need a post office.”

Doctors Lahiry Deiyagala and Kokila Karunarthne, both 38, both love living in Cambourne.

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But they face a 20-minute drive to Huntingdon, nine miles away, if they want to stock up with their favourite Asian foods.

“We need another supermarket – or at least a bigger one – with a wider choice of items,” said Lahiry. “That would save us a journey!”

Christine Walker, 77, out walking her dog Oscar, said: “It is doggie heaven here because we are surrounded by lovely countryside.

“And the tea shop is lovely. But there is not a lot for youngsters and we could do with another pub.”

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Zac Edwards, 31, said: “It’s a very friendly town and the people are lovely. But there’s nothing here.

“The local GP practice is over-subscribed already and it’s virtually impossible to get an appointment at the two practice dentists.

“They put up bus stops in West Cambourne where I live – unfortunately, though, no buses ever stop at them.”

Mr Danny Dove, 78, spoke from the comfort of the local pub, the Monkfield Arms

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Mr Danny Dove, 78, spoke from the comfort of the local pub, the Monkfield ArmsCredit: ROB WELHAM / McLELLAN
Cambourne's 'High Street' seems filled with residential streets rather than amenities

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Cambourne’s ‘High Street’ seems filled with residential streets rather than amenitiesCredit: ROB WELHAM / McLELLAN
General view of the High Street and centre of Cambourne

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General view of the High Street and centre of CambourneCredit: ROB WELHAM / McLELLAN
Locals already have access to a small supermarket, pub and café

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Locals already have access to a small supermarket, pub and caféCredit: ROB WELHAM / McLELLAN

Newcrest Cambourne Ltd who have applied for planning permission for the new homes argue they are necessary to make the scheme, which contains “several” new retail units, “commercially viable”.

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They claim: “This mix of uses will add to the vibrancy of the town centre bringing people living in the town centre.”

But residents have bombarded South Cambridgeshire District Council with objections.

One said: “The area really ought to be filled with just shops, community spaces and, if any residential at all, it should all be social and affordable housing only.”

Another claimed it was “outrageous” that homes were “being squeezed in to the detriment of the purpose of the High Street” and added: “The proposed application is not appropriate for the community.”

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And a third added: “Cambourne has far too much residential development as it is. What we are sorely lacking is retail, services and amenities.

“We need recreational places i.e. a swimming pool (top priority), and other possibilities include cinema, bowling and restaurants. A post office is a necessity.

“We also need a wider variety of shops including alternative supermarkets (e.g. Lidl or Aldi), independent stores/organic grocers, charity shops and TK Maxx.”

But despite the lack of shops and leisure facilities, Cambourne does have one claim to fame – the first, and only, Post Box bearing the cipher of King Charles III.

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Unveiled this summer by Julie Spence, the Lord-Lieutenant of Cambridgeshire, it draws visitors from around the world.

During a couple of hours on Saturday afternoon, three cyclists from London photographed themselves with it, before a couple of Dutch tourists arrived and then an excited group of university students from Cambridge.

South Cambridgeshire District Council’s Lead Cabinet Member for Communities, Cllr Henry Batchelor, said: “Cambourne is a successful and beautiful place to live and work – and the amount of open space and woodland is second to none for a new town.

“There’s a strong community engaged in all sorts of innovative projects and activities for all ages – alongside a supermarket, shops and convenience stores, hotels, schools and superb sports facilities.

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“Meanwhile, we are in the process of determining a planning application which proposes further retail space on the High Street alongside new homes.

“Our aim, working with our partners, such as Cambourne’s excellent Town Council and residents, is to continue creating a vibrant town with an exemplar transport network that connects communities, allowing people the choice to leave their cars at home.”

The Sun has approached Newcrest Cambourne Ltd for comment.

New planning applications indicate that more residential properties are on offer for locals rather than the high street that locals are desperate for

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New planning applications indicate that more residential properties are on offer for locals rather than the high street that locals are desperate forCredit: ROB WELHAM / McLELLAN
Huntingdon is a 20 minute drive away but does offer locals a wide range of amenities

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Huntingdon is a 20 minute drive away but does offer locals a wide range of amenitiesCredit: ROB WELHAM / McLELLAN

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I’ve been to dozens of holiday parks – the important rule I always follow before booking

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Robbie Lane has visited dozens of holiday parks across the UK

A HOLIDAY park expert has revealed some of his top tips – and the key feature he always checks before booking.

Robbie Lane has visited dozens of holiday parks across the UK, with an ambition to one day visit them all.

Robbie Lane has visited dozens of holiday parks across the UK

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Robbie Lane has visited dozens of holiday parks across the UKCredit: ROBBIE LANE
The Holiday Park Guru recommends booking a site with a beach or a sea view

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The Holiday Park Guru recommends booking a site with a beach or a sea viewCredit: Google maps/Woodside Coastal Retreat

Robbie, who runs Holiday Park Guru has been to all kinds of resorts, from the popular Center Parcs and Butlin’s to lesser-known independent sites.

But there is one feature he always makes sure they have before he books a trip there.

The former BBC journalist told Sun Online Travel: “I look for a holiday park that is walking distance to a beach, ideally with a sea view.

He added it makes it “much less hassle” especially when travelling as a family if you can avoid having to pack everything into a car.

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Read More on Holiday Park

He continued: “And it makes it much easier to fit in a quick seaside stroll after tea.”

He also said he tries to make sure the beaches that are at the holiday parks are both clean and safe for children, and gave some trips on where to find his favourites.

Robbie added: “If you want to try surfing and bodyboarding, then Devon and Cornwall are particularly good, as are parts of Wales.

“Haven, Parkdean Resorts and Away Resorts all have holiday parks next to outstanding beaches in the West Country.

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“The east coast of England and Scotland has lots of very wide open beaches with big open skies and space for walking the dog.”

One holiday park Robbie previously raved about was Ladram Bay in Devon – an award-winning site with its own private beach.

Top Seashore Holiday Parks for Family Fun

The sand-washed pebble beach has a stretch of rockpools and watersports like kayaks, paddleboards and motorboats can be rented from the holiday park.

Holidaymakers who don’t fancy a bracing dip will be pleased to know there’s also a heated indoor swimming pool on-site, complete with slides.

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There’s also a small pool with a children’s play area as well as an outdoor splash area with water features, spray guns and pirate ships.

Likewise, Darwin Escapes Woodside Coastal Retreat on the Isle of Wight, is one of the Holiday Park Guru’s favourite UK sites.

He previously told Sun Online Travel: “The holiday park is practically on the beach looking towards Portsmouth, it’s brilliant.”

If a holiday park isn’t next to a beach, Robbie recommends looking for an indoor swimming pool.

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If you can't book a site next to the beach, look for somewhere with an indoor pool instead

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If you can’t book a site next to the beach, look for somewhere with an indoor pool insteadCredit: HENDRA HOLIDAY PARK
Ladram Bay has its own private beach and an indoor pool

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Ladram Bay has its own private beach and an indoor poolCredit: Ladram bay

The Holiday Park Guru previously recommended Searles in Norfolk and Hendra Holiday Park in Cornwall as two sites with indoor pools.

Searles holiday park in Norfolk is located next to the Victorian seaside town of Hunstanton and has been welcoming families for 83 years.

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There are plenty of indoor facilities, including a heated indoor pool with a jacuzzi and sauna.

For younger guests, there’s also an indoor splash pool with dual slides and interactive water features.

Meanwhile, Hendra Holiday Park near Newquay has one of the largest indoor pools in the South West.

The Oasis Fun Pools feature an indoor pool with a river-rapid, a water cannon, tipping buckets, water fountains and three water flume rides.

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Here are the seven items Robbie always takes on a holiday park break

HOLIDAY Park expert Robbie Lane recently revealed the seven items he always packs before heading on a holiday park break with his family.

Here’s what he takes…

  • Swimming trunks – an essential for days at the beach.
  • A bottle of wine because on-site shops often have inflated prices, meaning the cost of food and drink will be higher.
  • Bikes/scooters, which come in particularly useful when staying at larger sites.
  • Blackout blinds for kids’ rooms to keep out any unwanted sunlight ensuring a good night’s kip.
  • A multi-socket extension because some caravans or lodges simply don’t have enough sockets.
  • A fan to help keep places cool, especially in the hot weather.
  • And a can of WD40 to get rid of any annoying squeaks in door frames.

Earlier this year, Robbie revealed England’s top three underrated holiday parks – with private beaches, indoor water parks and jet skis for kids.

And here are the other lesser-known holiday parks named among the best in the UK.

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Two of Robbie's top sites have their own private beach, including Ladram Bay (pictured)

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Two of Robbie’s top sites have their own private beach, including Ladram Bay (pictured)Credit: LADRAM BAY

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EU to delay new electronic border checks

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The EU will delay the start of its new electronic border system, said two people briefed on the discussions, after Germany, France and the Netherlands warned that the bloc’s computer systems were not ready.

The three countries had asked the European Commission to rethink plans to launch the “Entry/Exit System” in a month’s time because of fears that travel would be disrupted and the computer systems overwhelmed.

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Germany, France and the Netherlands account for 40 per cent of passenger traffic affected by the new system, and the commission could not proceed with its plans — which had already been delayed several times — without their consent.

At a meeting of EU home affairs ministers on Thursday, home affairs commissioner Ylva Johansson told ministers that the start date of November 10 was not feasible, and that the commission would consider a later date, according to two officials familiar with the situation.

The commission also proposed to introduce the system in phases, rather than all at once, said four officials briefed on the talks.

“The commission asked the [council of ministers] to agree to a phased approach. France, Germany and the Netherlands agreed, and the [Hungarian] EU presidency indicated that would be a good way forward. On the basis of that, the commission can now continue to work internally on a solution,” one EU diplomat said.

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Airports and airlines have also warned of queues at immigration, as the new system will require non-EU citizens to register their personal details, including fingerprints and facial images, when they first visit the bloc.

The officials said the commission would have to propose a legal change to make the phased-in approach possible, as the current legislation foresees introducing the new biometric border checks everywhere at once.

A targeted change to the legislation would require the EU Council and the European parliament to agree, which could take months. Another option could be for the commission to issue a so-called implementing act to facilitate a gradual start, the officials said.

The legal steps and potential new start date will be discussed next week at a meeting of the managing board of EU-Lisa, the EU agency charged with implementing the new system, the officials said.

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Two officials said the delay to the November date meant it was possible that the new system could begin next year.

Germany’s interior ministry last month said the central computer system of EU-Lisa “still lacks the necessary stability and functionality” and therefore the required tests could not be carried out.

The European Commission did not immediately respond to a request for comment.

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Platform selection tension

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Platform selection tension

When selecting platforms, advisers have to reconcile two opposing interests – the needs of the client and the needs of the firm.

Platforms are products for clients, and they are the ones who almost always pay for them. But the reality is that platforms primarily provide services to advisers to help them look after their clients’ portfolios.

The two purposes have different selection criteria. There is clear evidence advisers are shifting their view of platforms and how they choose them, and that they are primarily focusing on their own needs, according to our latest UK Adviser Platforms: Platform Selection report.

This horses-for-courses approach became less relevant as platforms became more similar in their pricing and capabilities

But the good news is that maybe this is in the clients’ best interests after all.

The ‘platform as product’ approach was dominant for many years. Platforms have come in many shapes and sizes, each with their own particular features and even peculiarities.

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Charging structures varied – some were great for smaller clients, while others were better for large portfolios or clients with workplace pensions.

Functionality was also different across the market. Some platforms were fine if you stuck to simple transactions, while others could handle more complicated and specialised business.

So, a firm with a range of client profiles typically used a variety of different platforms and selected them on a client-by-client basis.

Platforms may be basically quite similar but they all have their own idiosyncrasies that advisers and support staff need to master

But this horses-for-courses approach became less relevant as platforms became more similar in their pricing and capabilities. Nowadays, maximum platform charges are mostly clustered around the 0.3%-0.35% and they are expected to include almost every functionality.

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Differences remain, but they have become less important, except perhaps in a few special situations.

As charges and features have converged and some platforms have become sufficiently cheap and capable for the needs of most clients, it was enough to use just one or perhaps two or three platforms.

Of course, some advisers had long ago decided to focus on a very few platforms because they had low-cost special deals with providers that were competitive for virtually all their clients – or, in a few cases, they simply had a homogeneous clientele.

Unsurprisingly, some players have called for more transparency about special deals and platform charges that mostly remain confidential

Selection on a client-by-client basis may have optimised individual client suitability (at least theoretically) but it bred inefficiencies for the advice firms that used this approach.

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Platforms may be basically quite similar but they all have their own idiosyncrasies that advisers and support staff have needed to master.

Using multiple platforms means less expertise within firms in using individual platforms, together with more admin, more staff training and greater danger of mistakes. All these risks and costs are ultimately passed on to clients.

Consumer Duty’s ever-expanding requirements for advice firms is also looming over advisers’ heads. Less efficiency and higher costs limit the scope to charge clients less.

The drive for efficiency has led many advisers to think differently and more strategically about the way they select platforms. The average number of platforms advisers use has declined as they increasingly regard them as the administrative ‘plumbing’ for clients’ investments. So, what’s changed and what has stayed the same?

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Advisers’ growing focus on using fewer platforms has yet to reduce platforms numbers in the market

Pricing remains important. Concentrating business onto one or two platforms allows newer platforms with whizzier tech to provide very competitive standard pricing in the mid to low teens or even less. Older platforms can often offer special deals that can match these rates or better them.

Unsurprisingly, some players have called for more transparency about special deals and platform charges that mostly remain confidential.

But clients of firms that cling to the horses-for-courses approach and pay the standard charges are probably missing out.

The adoption of adviser-controlled platforms is another sign of this shift. Larger firms are more likely to go down this route, pioneering greater control of their advice process as well as lower charges, some of which they might pass onto clients.

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Another symptom is the acceleration in the volume of transfers between platforms. Over 50% of advisers have transferred assets in the last 12 months – many citing cost and service as primary drivers. Advice firm consolidation is also a powerful push factor.

Advisers’ growing focus on using fewer platforms has yet to reduce platforms numbers in the market. But with more platform switching, winners and losers are bound to emerge – with the inevitable platform consolidation to follow.

Lottie Bussell-Ahern is associate analyst at Platforum

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Checking out of Hotel California

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The Golden State is losing its lustre.

Since 2019, over 200 companies have left California for greener pastures — the most of any American state, by far — according to announcements tracked by fDi Markets, an FT service.

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Some big names have gone. Chevron, Hewlett-Packard, Palantir, and Charles Schwab have all made the move elsewhere.

Bar chart of Number of company relocations, 2019-Aug 2024 showing California here we don’t come

At the same time, few companies are relocating to California. What explains the exodus, and lack of arrivals?

Elon Musk, in part, blames the “woke mind virus” for shifting his ventures — SpaceX and Tesla — out of the liberal state. The less hyperbolic and more realistic reason cited by businesses is the rising burdens upon enterprise.

Start with the basics. California’s tax rates aren’t exactly competitive. And, according to data from George Mason University’s Mercatus Center, it is the most regulated state in the country. As of 2023, the California Code of Regulations contains over 400k restrictions and 23mn words, the bulk of which cover “industry, commerce and development”.

Bar chart of Total state restrictions in 2023, 000s showing California is the most regulated American state

So it’s no surprise that two of the biggest beneficiaries from this shift are Texas and Florida — which offer looser regulations and more competitive tax rates.

But the biggest motive for companies relocating within the US, according to an fDi markets survey, is actually talent. It’s a narrative that would seem to jar with the Silicon Valley’s status as a hub for high-skilled techies.

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Well. California also has a big problem with outmigration. In the 2010s, it experienced a net loss of 1.3mn residents. That has had a knock-on impact on state coffers (its budget deficit is estimated at around a whopping $45bn).

Column chart of Net domestic migration, 000s showing The California exodus

It’s not just low-income households moving out. One would assume that tech types would be tied to California’s cluster of coders, venture capitalists, and artisanal coffee shops. But employment in IT, business services and finance has been falling in the aftermath of the pandemic. California’s share of tech jobs across America has also dropped, although this may in part reflect its relative maturity as other areas experience new growth.

Line chart of Total jobs, 000s in San Francisco, Redwood City & South San Francisco showing Silicon Mountain

People are leaving, in part, because companies are. But California is also becoming a harder place to make a living. Housing affordability is a particular problem. For measure, in San Francisco’s Bay Area, median home prices recently hit $2mn.

Many again point the finger at regulation. Density restrictions, high land costs, environmental laws and NIMBYism are all blamed for making permitting processes frustratingly long. That peeves off commercial developers, and pushes-up residential prices, which scare workers away. Work-from-home culture has also meant many tech firms have downsized offices, and employees seek bigger, but affordable homes.

Above all. Despite its, many, draws — sun-soaked beaches, Silicon Valley, Disney World — if living gets tough, people up sticks.

And things are tough: California’s Misery Index — the sum of the annual inflation and unemployment rate — has been at a premium to the US-wide measure since the start of the pandemic.

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Line chart of Unemployment rate plus annual inflation rate, per cent (Misery Index) showing In a miserable state

Despite all this, the Golden State remains America’s largest economy (and in nominal terms, the world’s fifth-largest economy). Silicon Valley remains the world’s tech hub. The trends, however, do not look great. Other states are getting shinier in their own right. California can no longer afford to rest on its laurels.

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Martin Lewis warns against paying household bill monthly – and how using a credit card can even make it CHEAPER

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Martin Lewis warns against paying household bill monthly - and how using a credit card can even make it CHEAPER

MARTIN Lewis has warned against paying a regular household bill monthly – and it could even be cheaper covering the cost using a credit card.

The consumer champion said to steer clear of paying for car insurance in regular instalments over the year and instead pay annually if you can.

Martin Lewis has warned drivers against paying for car insurance monthly

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Martin Lewis has warned drivers against paying for car insurance monthlyCredit: PA

In a recent poll on X, Lewis asked his followers how they pay for motor cover, with over 32% revealing they do it via monthly direct debit.

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In response to the figures, Martin said he was taken aback at how many were not paying up front.

This is because when you pay monthly, the insurer classes it as you taking out a loan and charges you interest, meaning you pay more.

When you pay up front there’s no interest on top.

Read more on Car Insurance

Martin said: “Monthly direct debit is a LOAN – they pay the year for you and loan you the money often at 20% – 40% APR way more than a typical credit card.

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“I’m shocked by how many pay by monthly DD. Avoid if at all possible.”

Martin went on to say while he understood paying for car insurance monthly can help drivers budget, the APR’s charged by many big insurers mean a cheaper option can be paying annually with a credit card, ideally charging 0%.

And even some credit cards without interest-free periods charge lower rates than insurers.

APR refers to the total cost of your borrowing for the year.

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Martin added: “If you have to, most would be far better to put it on a 0% card and repay it over the 12 months.

Five ways to cut your insurance costs

“Or even a standard high st card with APR 20%, undercuts many big insurers who charge up to 40% APR.”

The latest MSE newsletter revealed how Direct Line charges 23% APR, Aviva 16%, Esure 26% and Hedgehog 44%.

How to use a credit card to pay for car insurance

Interest-free credit cards let you spend for a set period of time without being charged interest, after which point you are.

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However, you still have to make monthly repayments and if you miss them can see your 0% interest deal removed.

But they can be a good option if you need to cover an up front cost, like an annual payment for car insurance.

In this case, you would pay for your car insurance up front using the credit card, then pay off the balance each month.

This of course means you would have to work out how much you need to pay off each month so you are not left with any outstanding balance after the 0% interest period ends.

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As an example, if your car insurance policy cost £480 for the year and your 0% period lasted 12 months, you would need to pay off £40 on the credit card each month.

You may also be able to pay a minimum payment each month, which makes your repayments more manageable.

However, you may breach the 0% interest period and have to pay interest on any outstanding balance which will cost you more overall.

Meanwhile, if you’re using a normal credit card to pay for your car insurance up front, paying just the minimum amount each month may be more expensive than paying your insurer monthly if it means you are paying off the loan, and the interest on that loan, over a longer time.

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Of course, always bear in mind that a credit card is still borrowing and if you are using one to pay for your car insurance, try limiting it to just that and don’t use it on other spending as your repayment costs could rack up.

If you do miss monthly repayments, you can be hit with late payment fees with the typical charge around £12.

Meanwhile, not everyone will be eligible for a 0% credit card and you may be refused one if your credit rating is poor.

You can check our the best credit card deals by going on price comparison sites like MSE, MoneySuperMarket and Compare the Market.

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How else to save money on car insurance

Tom Banks, car insurance expert from GoCompare previously told The Sun it’s worth parking your vehicle in a garage or driveway, if you have one, as parking off-road can lower the chances of it being vandalised or stolen.

“Insurers will deem you as less of a risk to insure, thereby lowering your premium,” he explained.

If you’ve got the budget, consider installing alarms and other safety devices in your car too.

“These could help bring your car insurance cost down, as well as keeping your vehicle safe,” Tom advised.

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Up your voluntary excess as well – this is the maximum figure you have to pay if you are involved in an accident.

By increasing your excess, you are taking on more financial responsibility for your driving – insurers reward this by offering you a cheaper premium.

If you’ve recently added any modifications to your car, make sure they are included in your policy to ensure you’re covered as well.

If not, you may find your policy is invalidated and you’re forced to pay out over the odds in the case of an accident.

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What is car insurance?

Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for…

Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.

As a minimum, it protects you against any damage you case to other road users, the public or their property – these are called third parties.

You only need to claim on your car insurance when an accident is your fault.

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If another motorist is to blame, their insurance should pay out instead.

Car insurance, unlike home insurance, is a legal requirement and if you don’t have it you can be fined up to £1,000.

You can also have your vehicle seized and destroyed.

However, you don’t need to insure your car if it is classed as “off-road”, or holds a statutory off road notification (SORN).

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The vehicle has to be kept on private land and not a public highway though.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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