Tony Blair has been earmarked to play a key role in US President Donald Trump's peace plan for Gaza. AP
Tony Blair has been earmarked to play a key role in US President Donald Trump's peace plan for Gaza. AP
Tony Blair has been earmarked to play a key role in US President Donald Trump's peace plan for Gaza. AP
Tony Blair has been earmarked to play a key role in US President Donald Trump's peace plan for Gaza. AP

UK ministers back Trump plan as Blair is handed role


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British ministers have called for support for US President Donald Trump's peace plan in Gaza and backed Tony Blair's high-profile involvement.

Hamish Falconer, the Middle East minister, said there had been progress on resolving the war in recent weeks even though the situation in Gaza continues to be "a scar on our conscience".

"We have had one ceasefire, a short ceasefire while I was in the Middle East,” he said on Tuesday. “This offers the prospect of something more enduring, something that installs Palestinian government into Gaza. We must welcome it. We must work on it and we must make progress to achieve the objectives set out."

Health Secretary Wes Streeting said former prime minister Mr Blair's role would raise eyebrows. Speaking from Labour's annual conference, Mr Streeting said he backed the move, even from the perspective of one who had opposed the Iraq war.

“Now, I know there’ll be some people who look at Tony Blair and his legacy in Iraq and [it] will raise eyebrows, to say the least, about whether he’s the right man to be involved in this," he said. “Tony Blair also had an incredible legacy in Northern Ireland of bringing together sworn enemies to build a peace that has lasted.

“So if he can bring that skill set to bear in the Israeli-Palestinian conflict, with the support of Israelis, Palestinians and other regional powers, then so much the better.”

Those with knowledge of the work Mr Blair has been doing on the issue acknowledge his motivation lies partly in the legacy of Iraq's collapse after the invasion in March 2003. He also has experience of working on the region's politics, having been made Middle East envoy for the Quartet of international powers (the US, the EU, Russia and the UN) after leaving office in 2007.

British Health Secretary Wes Streeting greets Palestinian ambassador to the UK Husam Zomlot at the Labour Party conference. Thomas Harding / The National
British Health Secretary Wes Streeting greets Palestinian ambassador to the UK Husam Zomlot at the Labour Party conference. Thomas Harding / The National

Sir William Patey, chairman of Labour's Middle East Council, said it was key the process featured the involvement of Palestinians and the backing of regional states.

"It does offer the prospect of an end to the current carnage, of Israeli withdrawal," he said. "It has the backing, and there has been consultation with the major Arab states who will have to play a significant role in bringing security under some international force.

"They will play significant roles in rebuilding Gaza. I think the important thing about the plan is that Palestinians are able to go back to the whole of Gaza."

The proposal relies on acceptance by Hamas of the terms as set out by Mr Trump and Israeli Prime Minister Benjamin Netanyahu, who boasted in Washington overnight that the announcement had isolated Israel's enemy.

Genocide resolution

Meanwhile, the UK government is under intense pressure to call Israel’s actions in Gaza “genocide” after Labour adopted an emergency motion toughening its policy.

Husam Zomlot, the Palestinian ambassador, gave an impassioned speech at a fringe event attended by cabinet ministers, urging them to adopt the policy on Monday night.

Mr Zomlot welcomed Britain’s recognition of a Palestinian state but, speaking in front of Deputy Prime Minister David Lammy and Health Secretary Wes Streeting, he urged them to “acknowledge the genocide in Gaza”.

Labour Party members had earlier voted to approve an emergency motion at its conference in Liverpool to accept the UN commission of inquiry, which concluded Israel had “committed genocide” in Gaza. A speech by Chancellor Rachel Reeves was interrupted by a heckler calling for more action on Gaza.

Relations between Britain and Israel are at a nadir and declaring genocide in Gaza could render them irretrievable.

The government may be saved from taking a position following Washington’s moves on Monday to bring about a peace deal with Hamas.

Prime Minister Keir Starmer said the US initiative was “profoundly welcome” and that he was “grateful for President Trump’s leadership”.

“We are all committed to a collective effort to end the war in Gaza and deliver a sustainable peace, where Palestinians and Israelis can live side by side in safety and security,” he said.

Mr Zomlot said he was deeply grateful for the UK’s formal recognition of Palestine, but it needed “to be followed by, number one, acknowledging the genocide in Gaza", to intense applause at the Labour Friends of Palestine and the Middle East event in Liverpool.

While Palestinian recognition and the ending of “denial of 108 years of our existence” – since the 1917 Balfour Declaration – have “let us end the denial of genocide”, he said, “it has to become a Labour policy".

Palestinians were “not just merely surviving, we are not just on the defence against erasure, we are also on the offence to build a better future”. Speaking with emotion, he added: “We want to see our children in playgrounds, in schools, not in graveyards.”

British ministers applauded his remarks on Palestinian recognition but remained silent during his genocide comments. But Mr Lammy responded subtly to the speech, decrying the “unbelievable horrors” of Gaza that “are a stain on the world's conscience, with tens of thousands of innocent women and children killed”.

The famine in Gaza was “not a natural disaster” but “a cruel result of a blockade” and the Israeli military's offensive in the territory was “morally wrong”, Mr Lammy said.

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Anfield, Liverpool
Wednesday, 11pm (UAE)

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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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

Updated: September 30, 2025, 12:26 PM