UK Prime Minister Boris Johnson is preparing to unveil within weeks measures to help consumers facing rising energy bills.
Ministers have concluded that “something needs to be done” before the expected price increases on April 1, according to media reports. What form that will take has yet to be determined, with Mr Johnson expected to attend further meetings on the crisis next week.
This means the Treasury accepts that additional funds are needed as British households face a cost-of-living catastrophe caused by rising taxes, soaring energy bills and high inflation.
The government is expected to decide on what action to take before energy regulator Ofgem unveils a new limit for some tariffs on February 7.
Householders have already been warned that domestic gas and electricity bills could rise as much as 50 per cent in April when the energy price cap is increased.
However, Mr Johnson rejected calls on Wednesday to alleviate pressure on consumers by suspending green levies on household bills.
At a meeting with Business Secretary Kwasi Kwarteng, energy company heads called for the levies, which fund renewable energy initiatives, to be removed from bills, along with VAT.
The utility chief executives also asked the government to provide loans to allow them to extend support to customers and for an increase to the warm homes discount of £140 ($189) a year, which is available to the poorest households.
Mr Johnson’s spokesman said he was not aware of any further changes “at the moment”, when asked if the prime minster would action any of the solutions suggested.
“Obviously, we keep it under review and are listening to those that are most affected,” the spokesman said. But there were no plans to scrap the green levies, he said.
“I think we've seen through the fluctuations in things like gas, that it is important to have secure domestic renewable sources of energy. That's what we're investing in.”
Wholesale power and gas prices have recently shot to record levels, stoking higher inflation and a cost-of-living crisis throughout Europe.
UK households also face the threat of higher shopping bills because suppliers are passing on the costs of spiralling energy prices.
A British Chambers of Commerce survey of almost 5,500 companies found three out of five expect their prices to increase in the next three months.
As a result, UK consumer groups and charities are asking politicians to support low-income customers, who are forced to choose between paying for heat or buying food.
The Resolution Foundation said last month that 2022 is likely to be a “year of the squeeze” on household budgets as wages stall, taxes rise and prices surge, with households facing a £1,200-a-year hit from April.
On Wednesday, Jacob Rees-Mogg, the Leader of the House of Commons, urged the prime minister to ditch a £12 billion increase in national insurance over concerns about the rising cost of living.
Mr Rees-Mogg said the 1.25 per cent increase in the payroll tax should be shelved as inflation and energy bills surge. The increase is designed to help pay for the National Health Service publicly funded healthcare system and the growing cost of social care.
The sign of unrest in Mr Johnson’s Cabinet heaps further pressure on the prime minister to alleviate the impact on ordinary Britons of inflation that has soared to the highest in a decade at 5.1 per cent, with expectations it will rise to 6 per cent by the spring.
UK shares dropped on Thursday, with the FTSE 100 falling 0.7 per cent in early trading, tracking a fall in global equity markets after minutes of the US Federal Reserve's December meeting showed the central bank's hawkish stance on interest rate hikes as it looks to tame high inflation.
Earlier in the week, 20 Conservative members of Parliament wrote a letter to Mr Johnson and Chancellor of the Exchequer Rishi Sunak urging them to remove the 5 per cent VAT charged on energy bills – as well as the environmental levies they say make up almost a quarter of electricity bills.
The extraordinary surge in energy prices, with gas up more than 300 per cent from a year ago, has been exacerbated by the collapse of more than 20 smaller energy suppliers, with their customers transferred to other companies and the costs spread across the industry.
Ofgem is consulting on ways to stagger those extra charges over several years to offer some relief to supplier balance sheets. Funding would be provided by a bank so the costs would not immediately be added to consumer bills.
The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
COMPANY%20PROFILE
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
What is the Supreme Petroleum Council?
The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.
Notable Yas events in 2017/18
October 13-14 KartZone (complimentary trials)
December 14-16 The Gulf 12 Hours Endurance race
March 5 Yas Marina Circuit Karting Enduro event
March 8-9 UAE Rotax Max Challenge
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
