Talks between Boris Johnson and anti-immigration campaigner Nigel Farage have increased concerns that the Conservative Party could move further to the right if it is defeated in the next general election.
That outcome has become increasingly likely after the last set of UK local council elections were declared at the weekend, which point towards Keir Starmer leading a Labour government this autumn.
But the results were not so disastrous as to activate a planned back bench plot to unseat Rishi Sunak, with rebel MPs instead leaving the Prime Minister to “own” the looming defeat.
From now until election day, most likely in October or November, there will be a battle over which direction the party takes to fight Labour in opposition.
A divide is opening among Tories on whether to tack further to the right, with harsher migration and lower taxation to challenge the threat of the Reform UK party – which was founded by Mr Farage – or to move to the moderate centre where elections are generally won.
Boris talks
An indication that right-wingers are making the first move to take control has come after it was confirmed that disgraced former prime minister Boris Johnson had been in talks with Mr Farage.
With Reform currently polling at about 15 per cent, with its tough immigration and hard Brexit policies, it looks set to take a considerable chunk of Conservative votes, potentially leaving the Tories with fewer than 200 MPs post-election.
Political commentators believe Mr Johnson and others could then bring Mr Farage into the Conservatives to help make it a hard-right party.
Allies of the pair have been in contact with Mr Johnson recently declaring he will choose a time to re-enter frontline politics, likely in a by-election within the next two years.
However, a spokesman for Mr Johnson said his main priority was focusing on victory in Ukraine, writing a book and public speaking.
Nuggets of optimism
No mention was made of helping his former chancellor Mr Sunak win the next election but the current Prime Minister at least now knows the threat to unseat him – with any replacement becoming the fifth Tory premier in as many years – have receded.
He will draw on the few nuggets of optimism from the local elections in which the Conservatives managed to hold on to the Tees Valley mayoralty and did not finish third to Reform in the Blackpool by-election.
A cut in interest rates in the coming months, a further decline in inflation and the first Rwanda deportation flights taking off could all help form a political miracle to overturn the Tories current 20-point polling deficit.
As Labour secured only 34 per cent of the local elections vote, with the Conservatives on 27 per cent, that led to the suggestion of a hung parliament in the general election, with Labour 32 seats short of a majority.
“These results suggest we are heading for a hung parliament, with Labour as the largest party,” Mr Sunak told The Times. “Keir Starmer propped up in Downing Street by the SNP, Liberal Democrats and the Greens would be a disaster for Britain.”
However, the results did not include Scotland, where Labour should do well given the ruling SNP’s current political decline, while independents generally fare better in local contests
Labour was also not helped by many Muslim voters turning against it for its failure to strongly condemn Israel over Gaza, although it did manage to hold on to the London mayoralty, with Sadiq Khan re-elected for a record third term.
'Prepare for disaster'
Less welcome for the Conservatives was the latest YouGov poll that put them on 18 per cent and Labour at 44 per cent.
That polling and poor election results, with the Conservatives losing 474 out of 989 councillors, led to right-wing rebels setting out their stall.
“The hole to dig us out is the PM’s,” said Suella Braverman, the hardline former home secretary, adding it was too late to change leader as not even a “superman or superwoman” could restore the party’s fortunes.
“At this rate we will be lucky to have any Conservative MPs at the next election,” she added.
The arch-Brexiteer David Frost also wrote damningly of moderate Tories in The Daily Telegraph, stating that “genuine Conservatives must now face the fact that we must prepare for disaster”.
Clearly Mr Sunak will have a substantial task to motivate his party when MPs return to Westminster on Tuesday.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
T10 Cricket League
Sharjah Cricket Stadium
December 14- 17
6pm, Opening ceremony, followed by:
Bengal Tigers v Kerala Kings
Maratha Arabians v Pakhtoons
Tickets available online at q-tickets.com/t10
360Vuz PROFILE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”