A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA


Britain's HS2 railway troubles are a chance for self-reflection


  • English
  • Arabic

September 28, 2023

“The railways!” is one of the first answers given when the topic of the British Empire comes up and people ask, what did the British do for the world?

There is a wild irony – some might say hilarity – to the claim that railways were bestowed on India, and to a lesser extent East Africa, as a symbol of Britain’s greatness and benevolence. Nowhere is this more evident than in current events in the UK as the country teeters from one rail-related problem to another.

In 2009, a high-speed rail project called HS2 was announced. This would establish modern rail infrastructure in the north of England and rejuvenate several regions. Its total length was to be built in two parts: 255 kilometres from London to Birmingham, the UK’s second largest city, with a further network of 530 kilometres beyond that. It was costed at £37.5 billion ($39.5 billion). Fourteen years later, however, approximately £40 billion has been spent, the project now has a total cost estimate of £100 billion and, so far, no track has been laid. The British government even announced this week that its HS2 plans could be severely cut back or even cancelled.

A steam train in Agra, Uttar Pradesh, India in 1983. Britain's colonial-era rail network was built with Indian labour and served to export resources out of the country for the empire. Steve McCurry
A steam train in Agra, Uttar Pradesh, India in 1983. Britain's colonial-era rail network was built with Indian labour and served to export resources out of the country for the empire. Steve McCurry

If the Indian railways were a symbol of Britain’s greatness, then why is it that we can’t apply the same greatness here at “home”?

Perhaps it is because the story of Britain’s prowess in delivering railways to India is really a story about Indian labour, investment and railway management. It was Indians who actually built the railways. In fact, they did such a good job of it, when the British occupied East Africa, guess who they brought to build the railways… yes, the Indians.

It was also the Indians who took the financial investment and risk. The British who invested in the railways made huge profits because the government guaranteed double returns – which would be paid from Indian taxes.

The railways were never contrived as a benefit for the people – instead it was all about making profits. The Indian railways were actually the idea of the East India Company, and Governor-General Lord Hardinge argued that they would be beneficial to the “commerce, government and military control of the country”. Yes, that’s right: the trains were there to take resources out of the interior as quickly and cheaply as possible, and move the British military around to maintain control. The Indians that were moved around were in shoddy third-class accommodation. Talk to a British rail commuter today and they might say they have some resonance with how that feels.

That analysis of how the Indian railways came to be sheds a great deal of light on why railways are so challenging in the UK. It is a bitter pill to swallow but perhaps not as bitter as the other possible analysis: the fact that such grand rail projects linger uncompleted in Britain itself is a sign of a great power now in apparent decline.

I’ll be accused of doing Britain down ... but it is an act of love to address self-delusion, especially when it is so harmful to our current domestic state

The likelihood is that by saying this I’ll be accused of doing Britain down. That’s the generic, knee-jerk reaction to anyone trying to understand what happened and why, and trying to assess how the country is seen by others. As someone of Asian heritage, this backlash is also likely to include accusations of being “ungrateful” for what Britain has bestowed upon me. This itself is rather ironic since my ancestors were likely contributors to the wealth and power the country has enjoyed. So why do I need to be grateful?

It is an act of love to address self-delusion, especially when it is so harmful to our current domestic state, and particularly when it harms our present and future international stature.

In Britain, we need to better understand ourselves. There are lots of reasons for doing so, including honesty, self-awareness, domestic equality, racism and so on. But harnessing the DNA of success for the future is also among them. While many would argue that Britain’s past success and current wealth are based on exploitation and violence, I think it is reasonable to say that there was and continues to be a talent for innovation and production. The question now is how to achieve the success without the exploitation. How do we do this while recognising how international collaboration, talents and resources were fundamental to this?

Being fit for a world that has changed is why we must see how others perceive us – including hearing their experiences of being colonised. Otherwise, how do we make ourselves fit for purpose in this wildly different era? This is no longer the era of Pax Britannica. This is no longer the era of European powers being able to carve up the world on their own whims. There are other states who now wield as much if not more power. This is not to mention the power of corporations – always a love-hate relationship for the British and other empires – that operate in a transnational and almost invisible way that governments simply do not understand.

There is a bittersweet irony to the fact that railways, which used to symbolise the gift of imperial Britain’s “benevolence”, now expose the false narratives of domination and legacy. The optimist in me hopes that this latest rail crisis can instead become a moment when the country looks honestly at itself, about how we really came to be what we are today, and how we plot our course for international success in the future.

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

MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

World Cup final

Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region

Golden Shoe top five (as of March 1):

Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Updated: September 28, 2023, 2:00 PM