Britain's shadow foreign secretary David Lammy has outlined Labour's foreign policy strategy. Reuters
Britain's shadow foreign secretary David Lammy has outlined Labour's foreign policy strategy. Reuters
Britain's shadow foreign secretary David Lammy has outlined Labour's foreign policy strategy. Reuters
Britain's shadow foreign secretary David Lammy has outlined Labour's foreign policy strategy. Reuters

UK needs 'dynamic diplomacy' like UAE, says Labour's David Lammy


Lemma Shehadi
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The UK needs to recover the “art of grand strategy” to reinstate its overseas influence in a troubled world, drawing inspiration from countries such as France, India and the UAE, its shadow foreign secretary has said.

David Lammy outlined his prospective foreign diplomacy strategy on Friday at an Institute for Government event, with Labour hoping to emerge victorious in a general election expected later this year.

The UK could learn from France’s “hard-headed” economic diplomacy, and the “WhatsApp diplomacy” of President Emmanuel Macron, he said.

“We need to set out our own efforts – not only in the context of our closest competitors, such as the French, whose economic diplomacy can often feel more hard-headed and realist than our own.”

Other countries have risen on the world stage due to their ability to strike deals with all of the world’s great powers, he said.

“We also need to sometimes learn from the increasingly dynamic diplomacy approaches of countries like India, Brazil and the UAE,” he said.

Mr Lammy made several trips to the Middle East after October 7, as he sought to shape the Labour party’s response to the war in Gaza.

Last week, he made Labour's first call for a “pause” in arms sales to Israel, and shifted the party's position earlier this year when he called for an “immediate sustainable ceasefire” in Gaza.

The UK government’s relations with these Middle East countries were often strained over Gaza and other conflicts in the region.

“We absolutely need to work with the Gulf; this is hugely important for security in the Middle East. It’s important in relation to our economic growth missions,” he said, citing recent trips to Qatar and Saudi Arabia.

Asked whether relations with the Gulf could be improved, Mr Lammy said a Labour government would work towards this.

“I'm hugely concerned that at this time … the UAE and the United Kingdom, because of this government and missteps in this government, seem to have relations that are at an all-time low,” he said.

“That is not acceptable and is not in the UK's national interests. We will seek to repair that,” he said.

Labour Party through the years – in pictures

  • Labour leader Keir Starmer celebrates winning the UK general election with a speech at Tate Modern in central London in July. All photos: Getty Images
    Labour leader Keir Starmer celebrates winning the UK general election with a speech at Tate Modern in central London in July. All photos: Getty Images
  • Deputy Labour leader Angela Rayner, and Mr Starmer meet party supporters in Harlow in May
    Deputy Labour leader Angela Rayner, and Mr Starmer meet party supporters in Harlow in May
  • London Mayor and Labour incumbent Sadiq Khan, and his wife Saadiya Khan, pose with supporters after Mr Khan was re-elected in May
    London Mayor and Labour incumbent Sadiq Khan, and his wife Saadiya Khan, pose with supporters after Mr Khan was re-elected in May
  • Mr Starmer meets and greets supporters in Chatham in 2023
    Mr Starmer meets and greets supporters in Chatham in 2023
  • Then-party leader Jeremy Corbyn during a 2017 visit to Oxford
    Then-party leader Jeremy Corbyn during a 2017 visit to Oxford
  • First minister of Scotland Nicola Sturgeon, left, and leader of Scottish Labour Kezia Dugdale place roses at a memorial for murdered Labour MP Jo Cox, in Glasgow in 2016
    First minister of Scotland Nicola Sturgeon, left, and leader of Scottish Labour Kezia Dugdale place roses at a memorial for murdered Labour MP Jo Cox, in Glasgow in 2016
  • Labour leader Ed Miliband, sixth right, holds his first shadow cabinet meeting at the House of Commons in 2010
    Labour leader Ed Miliband, sixth right, holds his first shadow cabinet meeting at the House of Commons in 2010
  • Newly elected Labour prime minister Tony Blair stands on the steps of No 10 Downing Street with his wife Cherie in 1997
    Newly elected Labour prime minister Tony Blair stands on the steps of No 10 Downing Street with his wife Cherie in 1997
  • Mr Blair, John Prescott and Gordon Brown at the Labour Party Conference in 1997
    Mr Blair, John Prescott and Gordon Brown at the Labour Party Conference in 1997
  • Former leader Neil Kinnock, left, shares a joke with Peter Mandelson, a key figure behind the party's 1997 general election landslide victory, at the party conference in 1997
    Former leader Neil Kinnock, left, shares a joke with Peter Mandelson, a key figure behind the party's 1997 general election landslide victory, at the party conference in 1997
  • Leader John Smith addresses a miners' rally in Hyde Park, London, in 1992
    Leader John Smith addresses a miners' rally in Hyde Park, London, in 1992
  • Mr Kinnock with a group of youngsters publicising Labour's jobs And industry campaign in 1985
    Mr Kinnock with a group of youngsters publicising Labour's jobs And industry campaign in 1985
  • BBC TV coverage of the October 1974 general election, with Labour prime minister Harold Wilson and his wife Mary visible on a screen in London
    BBC TV coverage of the October 1974 general election, with Labour prime minister Harold Wilson and his wife Mary visible on a screen in London
  • Mr Wilson, left, and Labour politician Tony Benn speaking at a press conference during the 1974 general election campaign
    Mr Wilson, left, and Labour politician Tony Benn speaking at a press conference during the 1974 general election campaign
  • Barbara Castle speaking at the Labour Party Conference in 1969
    Barbara Castle speaking at the Labour Party Conference in 1969
  • Mr Wilson waving outside No 10 in 1964
    Mr Wilson waving outside No 10 in 1964
  • Mr Wilson, left, with deputy leader George Brown in 1963
    Mr Wilson, left, with deputy leader George Brown in 1963
  • A campaign poster issued by the Labour Party depicting leader Hugh Gaitskell arm-in-arm with Barbara Castle and Aneurin Bevan in 1959
    A campaign poster issued by the Labour Party depicting leader Hugh Gaitskell arm-in-arm with Barbara Castle and Aneurin Bevan in 1959
  • Party leader Clement Attlee with a Labour delegation, boarding a plane on their way to China in 1954
    Party leader Clement Attlee with a Labour delegation, boarding a plane on their way to China in 1954
  • Mr Attlee and his wife Violet attending a film premiere in London in 1952
    Mr Attlee and his wife Violet attending a film premiere in London in 1952
  • Members of the Labour cabinet at No 10 in 1929: Clockwise from top left: Tom Shaw, Arthur Greenwood, Noel Buxton, Sidney Webb, Arthur Henderson and prime minister Ramsay MacDonald
    Members of the Labour cabinet at No 10 in 1929: Clockwise from top left: Tom Shaw, Arthur Greenwood, Noel Buxton, Sidney Webb, Arthur Henderson and prime minister Ramsay MacDonald
  • Mr MacDonald addressing a Labour victory meeting at the Royal Albert Hall, London, in 1924
    Mr MacDonald addressing a Labour victory meeting at the Royal Albert Hall, London, in 1924
  • From left, Mr Henderson, William Brace, William Adamson, Vernon Hartshorn and James Henry Thomas outside Unity House during a coal workers' strike, in London, 1920
    From left, Mr Henderson, William Brace, William Adamson, Vernon Hartshorn and James Henry Thomas outside Unity House during a coal workers' strike, in London, 1920
  • Scottish Labour politician James Keir Hardie addressing a peace meeting in Trafalgar Square, London, in 1914
    Scottish Labour politician James Keir Hardie addressing a peace meeting in Trafalgar Square, London, in 1914
  • Mr Hardie speaks at a tailors' rally on May Day in Hyde Park, London, in 1912
    Mr Hardie speaks at a tailors' rally on May Day in Hyde Park, London, in 1912

Progressive realism

Called “progressive realism”, Mr Lammy's vision seeks to challenge global threats such as Russia's invasion of Ukraine, while also acknowledging the need for co-operation on climate change issues with China.

He said it was a practical, forward-thinking approach that would seek to find “common cause” with even the most divisive of leaders among UK allies, such as Donald Trump, if he were to be re-elected as US President.

The UK’s foreign and international development policies suffered from the merger of its two diplomatic arms into Foreign Commonwealth and Development Office in 2020, Mr Lammy said, speaking at the Institute for Governance.

Brexit, insufficient foreign investment in the UK and cuts in the UK’s overseas development spending meant the country “lost influence” on the world stage.

Conflicts in Ukraine and the Middle East, growing Chinese influence at the expense of the US and the need for global alliances to combat climate change are among the challenges that UK is grappling with, he added.

“At present neither the FCDO nor the National Security Council is delivering the sharp, coherent international strategy that the country urgently needs,” Mr Lammy said, days after returning from a trip to Ukraine.

“Without such strategy, we should expect to be buffeted by the tides of superpower competition, not only between the United States and China, but also by the many rising powers who are threatening our competitive advantages economically and militarily.”

With a potential Labour government making growth its priority, so would the UK’s diplomatic arms focus on economic relations, Mr Lammy said.

“On a whole host of areas – on AI, on climate, on rare earth minerals – we have to be front and centre-focused. It’s that alignment that I want to see from the FCDO,” he said.

He promised that Labour would establish a “college of diplomacy”, teaching courses in areas such as languages and AI (artificial intelligence), which would be open to all of Whitehall, as well as foreign mandarins “from friendly countries”, as part of a Foreign Office shake-up.

The college, which would replace the Diplomatic Academy, would seek to set the “global gold standard” for both diplomacy and development, Mr Lammy said.

More Foreign Office staff should be working in the field, rather than from the headquarters in London, and AI could be used to free up time for diplomats to concentrate on “front-line activity”, he added.

Labour will create a “soft power council” that will bring arts professionals and academics to work with the British Council and the BBC World Service to “advance national interests”, Mr Lammy said.

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

UAE currency: the story behind the money in your pockets
Scores

New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs 

New Zealand win by 47 runs

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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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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

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Updated: July 13, 2024, 9:13 AM