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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.
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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
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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
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