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Nobel Prize Winner John Hopfield Changed Neurophysics — and My Life

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John Hopfield

I first learned about neurons from a lecture by physicist and now newly minted Nobel Prize winner John Hopfield at Bell Telephone Laboratories in 1985. Hopfield was a senior scientist there, while I was as junior as possible. Bell Labs — the inventors of the transistor — had sponsored a set of lectures focusing on Hopfield’s new mathematical discovery that physics equations could explain neural circuits.

In his lecture, Hopfield showed diagrams of networks now called “Hopfield networks.” Bell Labs was hosting a Hopfield network day honoring him and his new-fangled ideas of using relaxation-energy equations from physics to design networks that “solved” certain difficult problems. Some of his diagrams looked just like the operational amplifiers (op-amps) in electronic circuit diagrams, which I had tinkered with for years — but now he called them neurons. So, my skill at making circuits now applied to brains. I was hooked, and within three years I was accepted as a student in the brand-new academic program called Computation and Neural Systems (CNS) that Hopfield was founding at the California Institute of Technology (Caltech).

An example of a Hopfield network with four nodes. Via Zawersh on English Wikipedia (CC BY-SA 3.0).

I attended Caltech in the CNS program’s second year. The first words I heard in a classroom were from Hopfield: roughly, “If you can explain how you do something, say solve an equation, odds are computers can already do it better. If you have no idea how you do it, say how you recognize your mother’s voice, odds are we have no idea how it works, and computers can’t get close.” That insight explains, among other things, why computers are better at following rules than at making sense of real life.

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Hopfield himself was imposing, in a grandfatherly way. Six feet tall, he seemed even taller when tipping back on his heels, clasping his hands, looking benignly down his nose and speaking in a booming bass voice. When graduate student Mike Vanier performed an imitation of Hopfield in a skit during our first year, it brought down the house. 

That core class Hopfield taught on Neural Nets (in 1988) was difficult in an epic way. Homework for the very first week — the same week students were still getting computer accounts and finding the bookstore — involved a set of three different kinds of supremely hard problems: solving a difficult set of differential equations, writing and testing a computer program to simulate a simple neural circuit and constructing that same working “neural” circuit by wiring a battery, op-amps, resistors and capacitors up to blink LEDs. Neither programming nor soldering was a stated class requirement. Lucky for me, I already knew how to program and build circuits, so I passed.

In fact, the little circuit I built in Hopfield’s class proved to be a key to my PhD project, and key to his final question for me. Hopfield sat on my committee and approved my thesis — even though I had proved that real neurons can’t possibly operate like those circuits. (Real neurons have to be hundreds-fold faster, at least.)

An interdisciplinary paradise

By world standards, Caltech is a tiny and very exclusive university, having only about a thousand undergrad and another thousand graduate students. Caltech specializes in leading scientific trends; the new CNS program (started with silicon guru Carver Mead) was meant to create an entirely new field by using mathematical techniques from physics, electronics and computer science to understand how information moves in biological systems like brains, muscles, eyes and ears.

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Psychology, psychophysics, optics, silicon design, algorithms, neuroscience, robotics — a score of scientific disciplines overlapped in lecture halls, classrooms and labs. It was an interdisciplinary paradise. Caltech’s philosophy is to base nearly everything (even biology) on physics principles. Hopfield and Mead’s common treatment of biological information processing as continuous equation accessible to physics, following in this tradition, made the CNS program a scientific innovation.

Hopfield’s contribution to physics, and to science in general, was to link well-established math about molecules and crystals to poorly understood computation problems like parallel processing and machine intelligence. His key scientific invention (the Hopfield network) was complex enough to solve real and interesting AI-like problems but simple enough to explain through equations initially designed to describe crystal formation. Hopfield created a whole new form of analog computation with his nets and a whole new way of describing neurons with the math behind them.

(While they make the math easier, it turns out that Hopfield’s smoothly responding mathematical “neurons” are nothing like real neurons in brains. Real neurons make irregular pulses whose noisy crackle must, in fact, carry information — a point first made in my dissertation under Christof Koch. [You can read the PDF here.] This fact undermines the one thing neuroscience thought it knew about the neural code.)

The Caltech CNS program was a university-wide expansion of Hopfield’s approach, bringing together math-wielding theorists with lab-bench experimentalists. As a member of both camps, I was in my element, and everyone around me was, too. It was exhilarating to bring humanity’s last 50 years of technological progress in audio, radio, circuits and computers to bear on explaining how brains work and what they do. With CNS, Hopfield and Mead had built a whole new discipline around their visions of mathematically simple neural nets.

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I benefitted directly from a major initiative of Hopfield’s. While he was on my committee, Hopfield wrote to the Caltech faculty at large, advising that he would require any grad student getting a PhD with him (e.g., me) to write a single-author paper. Usually, every paper a grad student writes has their advisor’s name on it too. That meant no one was sure whose ideas were whose. Hopfield’s point was that if a student submits a paper entirely on their own, it proves the ideas are theirs. I don’t know how my advisor responded, but I heard the faculty collectively was in a rage: Junior professors needed those extra papers to fill out their publication lists. Publish-or-perish was very real to them, and Hopfield’s principled stand for intellectual integrity made life tougher.

But not for me. Hopfield had “forced” me to do what I always wanted to do anyway: publish my most radical ideas as clearly as possible, in my own voice. So, I wrote a paper pretty much proving that neurons could operate a hundred-fold faster (i.e., 10,000% faster) than anyone thought at the time, which means a hundredfold more bandwidth. That paper started my career as a renegade and bandwidth advocate, a lonely position now utterly validated by research I presented in Tucson this April. Thanks to John Hopfield’s principled vision of science, I was not pressured to water down a good clean idea, which has now been vindicated.

A true physicist

The last conversation I remember with John Hopfield was when I defended my Ph.D. dissertation (the one “disproving” his model of neurons) in the old, storied East Bridge building at Caltech.

This room was nearly sacred to physicists. Steven Hawking had answered questions on these tiles a couple of years before. An alcove across the hall displayed a working micro-motor, less than a tenth of one millimeter on a side, inspired by nano-tech founder (and Nobelist) Richard Feynman. Around the corner were (not-yet-Nobelist) Kip Thorne’s framed bets about black holes. In a tiny room just down the hall, their common advisor John Wheeler had derived quantum mechanics from information theory on a chalkboard — “It from Bit.” On the floor in front of me (I had arrived early) sat his former student Kip Thorne. 

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In this hallowed place, I had not expected more questions. I had already been answering questions for hours in the seminar room next door, and I frankly expected Hopfield to say something different. I expected him to say “Congratulations, Dr. Softky.” This was supposed to be the end of my dissertation exam.

“We’d like to ask you some more questions,” Hopfield told me.

This wasn’t how it was supposed to work. Moments before, during my PhD defense, I had proved a popular body of knowledge wrong by invoking undisputed math. The panel had accepted the debunking, as CNS co-founder Carver Mead had accepted it weeks before. But I hadn’t debunked physics itself; I had debunked neuroscience. To my committee, that was a lower form of science, and they wanted to make sure I actually knew physics.

So, Hopfield asked me a question that hit the heart of my dissertation. He drew a little diagram of a circuit on the chalkboard: a battery, a capacitor, a resistor and a tiny neon bulb. He asked me what it would do.

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I remembered that little circuit from my childhood as a relaxation oscillator. It charges up until it hits the voltage where the bulb lights and then dumps the charge, starting the cycle anew. In other words, it goes blink-blink-blink. That little circuit was exactly the model of a neuron that my dissertation had disproven (such a circuit can’t produce the “noisy” pulses that real neurons produce). It was also the one Hopfield had inflicted on his students in our very first week of class, to solve, program and simulate with wires. Now I got to tell him how it worked, and didn’t work, as I became one of his own program’s very first PhDs. 

Very few people create whole new forms of science and technology. Hopfield was the first to use laws of physical energy flow to calculate information flow, just like Mead was the first to use laws of physical structure to design integrated circuits.

Combined, those two ideas now let computers act like dumb or clumsy people. Soon, they will also let us know how brilliant, graceful human beings do what we do best.

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

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Business

‘Lighter touch’ process for dismissals planned under UK workers’ bill

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UK employees who are still on probation will receive a lower level of compensation for unfair dismissal under proposals set out by the Labour government as part of its sweeping overhaul of employment law.

A provision giving workers protection against unfair dismissal from their first day in a job is the most contentious element of a wide-ranging employment rights bill published on Thursday, presented by ministers as a once in a generation upgrade of workers’ rights.

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About a third of the UK’s workforce have been in their current job for less than two years and could benefit from the new right, which Daniel Pollard, a partner at the law firm Charles Russell Speechlys, described as “the most radical change to unfair dismissal law since it was first instructed in 1971”.

But after fierce lobbying from business groups, which argue the policy will put a freeze on hiring, the government has conceded that employers will be able to follow a “lighter touch” process, if they determine a recruit is not right for the job over the course of their probation.   

Details of how a statutory probation process will work have yet to be decided, and will be set out in regulation and a code of conduct after the bill becomes law. But proposals outlined on Thursday pointed to a significant softening of the original policy. 

The government said in a “next steps” document, published alongside the bill, that its preference would be for a nine-month statutory probation period — longer than the three- to six-month periods that many employers currently operate.

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Kate Bell, assistant general secretary at the Trades Union Congress, said that making sure employers followed a fair process when they dismissed an employee would be more important than the length of probation

But the government will also “consult on what a compensation regime for successful claims during the probation period will be, with consideration given to tribunals not being able to award the full compensatory damages currently available”.

Ministers are nervous that the new right could lead to a surge in claims to employment tribunals that are already overburdened, with waiting lists of up to two years for a hearing.

The next steps document made it clear the government is seeking to deter people from pursuing shaky claims.

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But a principle that workers with a shorter tenure should not qualify for the same level of compensation as those with longer tenures will be controversial with unions, which have campaigned for “day one rights”.

Darren Newman, a consultant on employment law, said there were fears that even a “light touch” process for dismissing employees during probation could “cause chaos”, as HR departments became “bogged down in the technicalities of the procedure”.  

But limiting compensation during probation periods would be “a surprising move” given that earlier versions of Labour’s plans included proposals to lift statutory caps on tribunal awards, he noted.

The maximum award a tribunal can make for unfair dismissal is whichever is lower out of £115,115 or a year’s gross pay. But tribunals already take into account length of service when calculating compensation, and “regularly . . . award zero compensation”, Newman said.

Caspar Glyn, chair of the Employment Lawyers’ Association, said the “lighter touch” process could amount to “bringing a day one right in through the front door and smuggling it out through the back door” for employees dismissed on performance grounds.

Yet it would still be a “sea change” in protection for recent hires facing dismissal as part of a collective redundancy round, he noted.

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DWP reveals up to 760,000 families missing out on pension credit worth £3,900 a year – see if you can claim

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DWP reveals up to 760,000 families missing out on pension credit worth £3,900 a year - see if you can claim

HUNDRED of thousands of families are missing out on vital pension credit payments worth up to £3,900 annually, according to new figures from the Department for Work and Pensions.

The latest statistics reveal that up to 760,000 families entitled to pension credit did not claim it during the financial year ending in 2023.

DWP statistics have revealed up to 760,000 families are missing out on pension credit

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DWP statistics have revealed up to 760,000 families are missing out on pension credit

This is a slight improvement from the previous year when around 870,000 families were eligible but didn’t take up the benefit.

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Pension credit, a means-tested benefit designed to top up the income of the poorest pensioners, is becoming increasingly important as it is now linked to other crucial support.

In particular, those claiming pension credit are eligible for the winter fuel payment, which has become more restrictive following recent government changes.

The benefit goes to those who’ve reached State Pension age, which is currently 66, whose weekly income is less than £201.05 if you’re single, or £306.85 for couples.

Those who have a higher income may still be eligible if they have a higher income but have others costs like housing, a disability, or even savings.

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Claiming Pension Credit can also unlock extra help, including, a free TV licence if you’re over 75, help with council tax and support with household costs such as ground rent.

A surge in pension credit applications was observed after Chancellor Rachel Reeves announced in July that the winter fuel payment would only be available to pensioners receiving pension credit or other means-tested benefits.

Moment Martin Lewis slams ‘you’re taking money from UK’s poorest pensioners’ in fiery clash with cabinet minister on GMB

This change, aimed at addressing a £22billion deficit in public finances, is expected to reduce the number of recipients of the £300 winter fuel allowance from 11.4million to just 1.5million.

Despite the recent uptick in claims, a staggering £1.5billion worth of pension credit went unclaimed last year.

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This is a slight improvement from the £2billion left unclaimed in the previous year, but it highlights the ongoing issue of low benefit take-up among pensioners.

It comes as thousands of Sun readers flooded our Winter Fuel SOS helpline yesterday looking for help to hang on to the payment.

Figures from the DWP show that 65 per cent of those entitled to pension credit claimed it in 2023, up from 63 per cent in 2022.

While the rise is encouraging, campaigners argue that far more needs to be done to ensure older people receive the financial help they’re entitled to.

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Pension Credit explained

Pension Credit is a benefit which gives you extra money to help with your living costs if you’re on a low income in retirement.

It can also help with housing costs such as ground rent or service charges.

You may be able to get extra help of you’re a carer, have a disability, or are responsible for a child.

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It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you’re over 75, and help with NHS costs.

To qualify, you need to be over state pension age and live in EnglandScotland or Wales.

If you have a partner, you need to include them on your claim.

Pension Credit tops up:

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  • your weekly income to £218.15 if you’re single
  • your joint weekly income to £332.95 if you have a partner

However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities.

There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement.

You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.

If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income.

Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

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Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Boosting take-up of pension credit has been a major problem that has proven tricky to crack, with previous campaigns being derailed by the pandemic.

However, there are signs that progress is being made, with take-up creeping up to 65 per cent from 63 per cent the previous year.”

Morrissey added that the recent focus on linking pension credit to the winter fuel payment may drive further increases in applications.

She said: “The restriction of the winter fuel allowance to people on benefits such as pension credit has garnered many headlines, with people urged to check if they can put in a claim.”

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However, she warned that the scale of the problem remains significant.

She continued: “More than 750,000 families who could receive pension credit are still not claiming it.”

“Pension credit is a hugely valuable benefit that not only tops up income but also acts as a gateway to other support such as a free TV licence for the over-75s as well as help with council tax.”

With energy bills set to rise again this winter, the winter fuel payment will be critical in helping pensioners manage their household costs.

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Campaigners have urged those who think they might be eligible to apply for pension credit as soon as possible.

How to apply for pension credit

YOU can start your application up to four months before you reach state pension age.

Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.

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You can get a friend or family member to ring for you, but you’ll need to be with them when they do.

You’ll need the following information about you and your partner if you have one:

  • National Insurance number
  • Information about any income, savings and investments you have
  • Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)

You can also check your eligibility online by visiting www.gov.uk/pension-credit first.

If you claim after you reach pension age, you can backdate your claim for up to three months.

Joanna Elson, chief executive of Independent Age, described the figures as “disappointing” and warned of the real-life consequences for those missing out on financial help.

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Joanna said: “Behind these statistics are real people who are worrying about whether they will be able to afford next month’s bills.”

She added that the winter fuel payment should be protected from means-testing to ensure the most vulnerable pensioners don’t miss out on essential support.

Joanna continued: “To ensure this group don’t also miss out on the winter fuel payment, we continue to call on the UK Government to pause their plan to means test the winter fuel payment.”

Campaigners argue that the current approach to encouraging pension credit claims isn’t enough and are calling for a more innovative, long-term strategy to reach those most in need.

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With winter approaching, the pressure is mounting to ensure that pensioners don’t face financial hardship as energy prices soar.

For many, claiming pension credit could provide a much-needed lifeline during the cold months ahead.

Meanwhile, money saving expert, Martin Lewis was seen clashing with government minister Lisa Nandy over the Winter Fuel Payment decision that will affect millions of pensioners.

The Sun’s Winter Fuel S.O.S Campaign

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WORRIED about energy bills? The Sun’s Winter Fuel SOS crew are taking calls on Wednesday.

We want to help thousands of pensioners worried about energy bills this winter, with tips and advice on how to make cash go further.

Our Winter Fuel SOS crew will be able to help answer your questions on whether you can get Pension Credit and the Winter Fuel Payment.

Ten million OAPs are set to lose the £300 Winter Fuel Payment due to government cutbacks.

It comes in the same month that millions of households are hit by a ten per cent rise in bills as the Energy Price Cap shoots up.

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We can help with advice on how else to save money.
Our phone line is open 7am to 7pm Wednesday October 9 – you can call us on 0800 028 1978.

Or you can email now: WinterfuelSOS@the-sun.co.uk

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Travel

Stretch of English coast where dinosaurs roamed – with some of the world’s best fossil hunting & Portuguese-like beaches

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The Jurassic Coast is one of the world's best fossil hunting spots

WHEN Steven Spielberg’s Jurassic Park hit the big screen in 1993, fictional paleontologists Alan Grant and Ellie Sattler made fossil hunting look cool.

However, Brit holidaymakers don’t need to visit a desert – or an island covered with dinosaurs – to step into Dr Grant’s fictional shoes because England is home to one of the best fossil hunting spots in the world.

The Jurassic Coast is one of the world's best fossil hunting spots

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The Jurassic Coast is one of the world’s best fossil hunting spotsCredit: Alamy
Holidaymakers will often find fossils on beaches that line the Jurassic Coast

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Holidaymakers will often find fossils on beaches that line the Jurassic CoastCredit: Getty – Contributor

Smithsonian Magazine named the Jurassic Coast as one of the best fossil-collecting sites on Earth because visitors are actively encouraged to save fossils, where possible, for research purposes.

The Jurassic Coast was also named one of the best fossil hunting spots in the UK by Countryfile.

England‘s Jurassic Coast stretches for 95 miles from East Devon to Dorset, meaning there’s lots of space for dinosaur enthusiasts – whatever the age.

Would-be paleontologists should make a beeline for Lyme Regis, which is often dubbed the Jurassic Coast’s fossil capital thanks to English fossil collector Mary Anning.

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The 19th-century paleontologist made some important discoveries, including finding the first complete ichthyosaur skeleton and the first plesiosaur skeleton

And there are still plenty of skeletons, dinosaur footprints and fossilised treasures waiting to be found, with a 6ft-long pliosaur skull found just last year.

Other prime fossil hunting spots include Kimmeridge Bay, a sheltered and secluded bay that’s a mixture of pebbles and sand.

There’s also Ringstead Bay, an unspoilt beach that’s backed by farmland and cliffs.

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At Ringstead Bay the bedrock must not be disturbed, meaning fossil hunters will need to look with the eyes rather than taking their finds home to be verified.

If you’re not much of an explorer, but still want to see traces of dinosaurs, then head to the Spyway Dinosaur Footprints.

The pretty UK beach named the best in the country

What is it like to visit the Jurassic Coast?

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ASSISTANT Travel Editor Sophie Swietochowski (centre) explains what it’s actually like to visit Durdle Door.

DESPITE the Jurassic Coast being one of the most well-known spots for rambling in the UK, it has managed to remain gloriously peaceful.

I barely passed another soul during a Sunday hike along the rugged coastal path above Durdle Door a few years back – only a herd of cows munching on the unkempt grass at the top of the cliff.

Admittedly, things grew a little busier as I approached Lulworth Cove. But that’s no surprise with a horseshoe-shaped pebble bay and turquoise waters that could rival those in the Caribbean.

Make sure to wander over to Fossil Forest while you’re here too, where you can observe ripples of an ancient sea floor within the rocks and fossilised remains of old tree stumps that date back to the dinosaur era.

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Located in Purbeck, next to a working quarry, it is easily accessible from the Priest’s Way walking path.

The footprints were made 145 million years ago when the area was covered in tropical forests and swamps, giving visitors the chance to step back in time.

The fossils were discovered in 1997 by quarrymen Kevin Keates and Trev Haysom before the site opened to the public in 2016, with the Jurassic Coast Trust occasionally running guided walks of the site.

Charmouth, a village in Dorset, is another prime location for fossil hunting.

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Make a beeline for Charmouth Beach and get booked onto a fossil hunting walk with Charmouth Heritage Coast Centre.

The 90-minute walking tour takes place outdoors where a guide helps holidaymakers search for fossils, with visitors even able to take their treasures home.

A trip to the Jurassic Coast isn’t complete without seeing Durdle Door – one of the area’s most well-known landmarks.

The natural arch was formed from a layer of hard limestone that stands almost vertically out of the sea.

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Durdle Door stands at the foot of a steep path, which is accessible from the South West Coast Path.

In the last few years, some holidaymakers have likened Durdle Door to beaches in Portugal because of its coastline and rock formations.

One person wrote on TripAdvisor: “Lulworth Cove and Durdle Door: Reminded me of the Algarve in Portugal!”

While another added: “The rocks protruding out of the sea were so pretty you would forget you’re still in England and reminded me of a trip to Portugal.”

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A third commented: “You don’t feel like you are in the UK. It seems more like Portugal or California.”

If you’re looking for somewhere to stay overnight, then the Sun’s Head of Travel recommends Durdle Door Holiday Park.

The family-owned holiday park has endless sea views as well as unrivalled access to Durdle Door.

Sun Online Travel have found touring pitches from £30 per night per pitch.

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There are plenty of other places across the Uk where dinosaur enthusiasts can get the Jurassic Park fix.

One of those places is Paradise Park in East Sussex, which is home to life-size moving dinosaurs, fossils and a Dinosaur Safari at Paradise Park.

Meanwhile, Knebworth House in Herefordshire has a dinosaur-themed adventure section.

And Combe Martin Wildlife and Dinosaur Park in North Devon has 19 animatronic dinosaurs, including a life-sized T-Rex, Dino Express train and a play zone.

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Can you get fined for taking fossils home?

WHILE some fossil hunters will simply choose to look and not touch, there will be others who will want to take their treasures home.

The rules surrounding fossils are a little grey, with holidaymakers needing to do their own research because every area is different.

According to the Natural History Museum, holidaymakers will need to make sure they have the “appropriate permission and access rights” to take fossils home.

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For example, some areas are Sites of Special Scientific Interest, which may have extra restrictions.

Guidance on the Natural History Museum website states: “Always look up and follow the rules for the specific areas you visit or those imposed by owners or controllers, which can include obtaining permission to access and collect in the area, avoiding disturbing wildlife, and recording what you found and where. In some places you can look but mustn’t collect anything.”

Meanwhile, ROARR! Dinosaur Adventure in Norfolk is set to open a new land in 2026.

Gigantosaurus Land will be based on an animated series of the same name, which currently streams worldwide on services like Netflix, Prime Video, and Disney Plus.

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Kimmeridge Bay is a popular fossil-hunting spot

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Kimmeridge Bay is a popular fossil-hunting spotCredit: Alamy
Durdle Door is a well-known rock formation on the Jurassic Coast

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Durdle Door is a well-known rock formation on the Jurassic CoastCredit: Getty

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Huawei Beats Apple in China for First Time Since 2019

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Huawei Beats Apple in China for First Time Since 2019

Analysts attribute Huawei’s resurgence to strong demand for its flagship Mate series, the Pura series, and innovative models like the foldable Mate XT.

These models have captivated local consumers, helping Huawei reclaim its top position in its home market.

China remains Huawei’s largest market, accounting for a significant 89% of the company’s global smartphone sales.

Meanwhile, overall sales of foreign smartphones in China, including Apple’s, experienced a decline.

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According to the China Academy of Information and Communications Technology, foreign smartphone sales dropped 12.7% year-on-year to 1.87 million units in August.

In contrast, domestic brands saw a sharp 26.7% surge in sales, reaching 24.05 million units.

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Business

Peel Hunt takes Aim at the IFS

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For a month now, UK small- and mid-cap broker Peel Hunt has been banging the drum about the potentially catastrophic effect that the removal of an inheritance tax loophole might have on London’s ever-eventful small- and mid-cap Alternative Investment Market (Aim).

Still smarting from Labour’s scrapping of the nascent “British Isa”, and with the UK Budget fast approaching, head of research Charles Hall warns that the hypothetical removal of IHT relief for AIM shares would lead to “permanent damage” to what the LSE still describes as “the world’s most successful growth market”.

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The removal of the tax incentive, which was introduced in 1996, would threaten the very “future of AIM as a functioning market”, Hall added in a note on Thursday (with our emphasis):

We see material downside risk for AIM form removing IHT relief. Moreover, our forecasts show a net tax reduction to the Exchequer of £2.6bn, rising to £3.2bn . . .

We see an impact on the AIM market of 20-30% if [Business Property Relief, which can be passed on sans IHT upon the death of the investor] is removed, crystallising a loss of value [of] £14-21bn to UK shareholders, resulting in a permanent destruction of spending power.

Here are their numbers:

© Peel Hunt

Other projections are available. Hall admits as much while taking a swipe at the Institute for Fiscal Studies think-tank, two of which’s academics — Arun Advani and David Sturrock — think scrapping the relief would actually raise tax intake by more than £1bn.

Here’s Hall:

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There have been several reports suggesting that removing [Business Property Relief, which can be passed on free from IHT upon the death of an investor] from AIM shares would be tax enhancing. Notably, the IFS suggested a £1.1bn increase in tax, rising to £1.6bn per annum. We believe these numbers are flawed for numerous reasons, and estimate a material reduction in tax revenue.

Back in May, Advani and Sturrock wrote that IHT relief “distorts investment choices towards these types of shares, particularly for older people seeking to minimise their inheritance tax liability”. From their article:

Revenue implications: We estimate that the removal of business relief for AIM shares could raise around £1.1 billion in the current tax year, rising to £1.6 billion in 2029—30. This could be an underestimate, since business relief on AIM shares is used very heavily by trusts, for which no direct statistics are available. If those currently using AIM shares to avoid inheritance tax would respond to its removal by using other avoidance strategies, the amounts raised could be lower, though.

Hall was in a fighting mood this morning, writing of the IFS’s £1.1bn: “We do not recognise this number”.

So we asked the IFS’ Advani what he made of Hall’s assessment. Unsurprisingly, he stood by his own figures while taking a swipe of his own at PH’s:

I don’t believe [Peel Hunt’s] assertion that the hit to AIM would be 20 to 30 per cent. It’s not necessarily wrong, but it’s a statement without any underlying evidence. I wouldn’t put much weight on it as I don’t know how they got there . . . 

The upfront cost of this relief is £1.1bn. If you spend that money on something else, direct public spending, whatever. That has positive effects for jobs elsewhere etc.

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It seems like a very partial way to look at the world to say if you take away this relief, that jobs would go [PH notes that AIM companies are responsible for close to 800,000 employees]. Hall seems to have ignored the other side of the equation. We ignored both. We’re not burning this money, it’d be spent on something tangible.

I’m all for supporting investment. I just think this is the wrong place to do it.

Advani also points out that unlike other targeted tax reliefs (Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Venture Capital Trusts), “the current design of BR does not do anything to explicitly focus investment into companies which are expected to be high-return”.

Aim might not be helped by the removal of the incentive. But its problems — namely a dearth of flotations, high costs and burdensome listing requirements — run far deeper than anything that maintaining IHT relief might fix. Either way, the ball is now back in Peel Hunt’s court. Or, we suppose, in Rachel Reeves’.

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Further reading:
Peel Hunt’s cunning plan
How to fix London’s markets (if you get a chance, no worries if not)
Meanwhile, on AIM (FTAV)
Number of Aim-quoted groups drops to 22-year low in blow to London (FT)

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Six stocking filler perfume dupes from B&M, Lidl and more – starting from £2.49 and can save you £336 this Christmas

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Six stocking filler perfume dupes from B&M, Lidl and more - starting from £2.49 and can save you £336 this Christmas

SAVVY shoppers can save up to £336 this Christmas with stocking filler perfume dupes starting at just £2.49.

Christmas is fast approaching, and if you’re looking to spoil your loved ones without breaking the bank, we’ve got the perfect stocking fillers for you.

Shoppers can save themselves up to £336 this Christmas as we reveal the best perfume dupes

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Shoppers can save themselves up to £336 this Christmas as we reveal the best perfume dupes

High-end perfumes might be a dream for some, but we’ve rounded up six incredible dupes that smell just like the real deal – for a fraction of the price.

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From B&M to Poundland, here’s how you can bag luxurious scents for less this festive season.

Missy G.G. Body Mist – £2.49 at B&M

Missy G.G Body Mist is a dupe of the Good Girl Body Spray

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Missy G.G Body Mist is a dupe of the Good Girl Body Spray

Top of our list is the Missy G.G Body Mist that shoppers can snap up at B&M for just £2.49.

This fruity body mist has been making waves as a dead ringer for the iconic Good Girl Body Spray which retails for £47, saving you £44.51 – that’s 90% cheaper.

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Shoppers are raving about it as the perfect dupe – and at just £2.49, it’s an absolute steal.

The bargain find was spotted in store and shared on social media by a happy shopper.

She posted a picture of the bottle with the caption: “Carolina Herrera good girl body spray dupe £2.49 from B&M smells exactly the same as the original it’s beautiful.”

It can be purchased in-store but you can’t buy online

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Pink Plush – £4 at Poundland

Pink Plush is a great Poundland dupe for the Moschino Toy 2 Bubble gum perfume

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Pink Plush is a great Poundland dupe for the Moschino Toy 2 Bubble gum perfume

Next up is Pink Plush from Poundland, priced at only £4.

It’s a fantastic dupe for Moschino Toy 2 Bubblegum, which would set you back £43 at The Perfume Shop.

With a saving of £39, or 91%, Pink Plush offers a sweet, bubble-gum-like scent that’s playful and fun.

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You can find it in-store at Poundland, making it an ideal budget-friendly option for Christmas gifts.

Quartz – £4 at Poundland

The Quartz fragrance at Poundland is a good dupe for those after Paco Rabbane Fame

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The Quartz fragrance at Poundland is a good dupe for those after Paco Rabbane Fame

For those who love Paco Rabanne Fame, the Quartz fragrance from Poundland is a must-have.

Filled inside a fun silver robot, Poundland’s Platinum Pour Homme is a more affordable dupe of the posh scent that retails for close to £70 at The Perfume Shop but is 93% cheaper at just £4.

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This saves you a whopping £74.

That’s a massive saving without sacrificing on style or fragrance quality.

The purse-friendly collection, which hit the stores recently, has already taken the internet by storm, with fans rushing to Facebook to share the news.

One shopper, Nat Fergusson, took to Poundland Appreciation Society, where she wrote: ”Some fab fragrances at only £4 each!”

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Perfect Seduction – £4 at Poundland

Perfect Seduction is a dupe for Katy Perry's Purr and is available at Poundland

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Perfect Seduction is a dupe for Katy Perry’s Purr and is available at Poundland

Another standout from Poundland is Perfect Seduction, a £4 dupe of Katy Perry’s Purr, which retails for £28 at Fragrance Direct – saving you £24.

Fans of Purr will love this affordable alternative, with its fruity and floral notes.

The adorable black cat-themed bottle is a major win in itself – so even if you don’t enjoy the scent, you’ll have a cute little home decor piece.

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You’ll pay 84% less by picking this up at your local Poundland.

For those after something more luxurious, Opulent Fizz from Poundland is another fantastic dupe for Dior J’Adore, which typically costs £94.99.

At just £4, you’re saving a whopping £90.99, or 96%, making this champagne glass-shaped perfume a true bargain.

It’s a perfect gift for anyone who loves a sophisticated scent, and it’s available in-store at Poundland.

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Good Chica Eau de Parfum – £3 at Primark

Pictured on the left is Good Chica, a Primark dupe for Carolina Herrera's Good Girl

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Pictured on the left is Good Chica, a Primark dupe for Carolina Herrera’s Good Girl

At Primark, you can find Good Chica Eau de Parfum for just £3.

This fragrance is a brilliant dupe for Carolina Herrera’s Good Girl Eau de Parfum but is 95% cheaper as Good Girl currently retails at Boots for £65, saving you £62.

With contrasting notes of jasmine, cocoa, and almond, Good Chica delivers the same bold, feminine scent at a fraction of the price.

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Are dupes worth it?

THE Sun asked an independent perfume expert to carry out blind smell tests of popular perfumes and their high street “dupes” to see if the budget versions lived up to the originals.

Noemie Maury is a senior fragrance evaluator who has worked with major fine fragrance and toiletries brands for over a decade.

High street chains can create perfumes cheaply by buying them from big fragrance manufacturers which grow their own ingredients in-house,” says Noemie.

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“Because they use oils from flowers they grow themselves instead of importing ingredients, they save on costs and can create fragrances for high street brands at a discount price.”

It means they can lack the depth and complexity of more expensive brands which use a wide variety of more expensive ingredients.

You’ll save £62, making it an affordable yet luxurious gift, available in Primark stores.

The perfume made waves on Facebook‘s infamous Extreme Couponing and Bargaining group when one user posted her lucky find.

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The savvy shopper also mentioned isn’t the only great dupe Primark has in store.

She said: “They did have others too but I can’t remember the names of them.”

Pistachio and Salted Caramel Body Spray – £5.99 at Lidl

Lidl's Pistachio and Salted Caramel spray, pictured on the left, is a dupe for Sol de Janeiro’s Brazilian Crush Cheirosa 62

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Lidl’s Pistachio and Salted Caramel spray, pictured on the left, is a dupe for Sol de Janeiro’s Brazilian Crush Cheirosa 62

Finally, Lidl’s Pistachio and Salted Caramel body spray is a favourite for those who love Sol de Janeiro’s Brazilian Crush Cheirosa 62.

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Priced at just £3.99, it’s a fantastic dupe for the cult classic, which costs £30 – making the 86 per cent cheaper.

You’ll be saving £25.01 on this tropical, sun-kissed scent that’s perfect for the holiday season.

It’s currently only available in selected stores.

You can find your local store by using the store finder tool.

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With these seven amazing dupes, you can fill those Christmas stockings without breaking the bank while still gifting luxurious scents.

Many bargain stores are starting to sell dupe alternatives of popular branded products at a hugely reduced price.

Lidl is one of the best around as dropping a number of home and beauty dupes.

Dupe hunters have unearthed Jo MaloneRitualsMolton BrownSol de Janeiro and Lush copycats in stores across the country.

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There’s even a £1.99 dupe of the coveted Jo Malone London Pomegranate Noir Body & Hand Wash.

The designer version will set you back a mammoth £36.

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