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Starmer will enjoy the briefest of honeymoons with his in-tray full of problems to fix


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July 05, 2024

The British Labour Party’s landslide victory is historic. “Change begins now,” the new prime minister Keir Starmer said, capturing the public mood – and the hunger for a better Britain. His parliamentary majority is enormous, and so is Labour’s mandate for “change”.

The catch is that the problems facing the new government have built up over 14 years and are also enormous. However impatient voters – and new Labour MPs – may be, Mr Starmer has an in-tray that no one will envy. It’s a list of problems that voters want fixed immediately but which have been years in the making and will take more than a five-year parliament to fix.

The lack of affordable housing, for example, is so severe that many young British people feel they may never own their own home. The fix doesn’t just involve building the homes, which itself takes time.

What’s needed includes changing planning laws, improving the economy, paying good wages and cutting the cost of borrowing. Then, how does Mr Starmer’s new team – a party out of government for almost a decade and a half – fix record waiting lists for National Health Service appointments?

Where do we find and train new medical teams? How does he fix the problem of many people unable to find an NHS dentist? What – despite all the hot air, promises and senseless ideas of sending migrants to Rwanda – is a realistic solution to the problem of migrant boats in the English Channel? And how do you fix the underfunding of the great British cultural assets including universities?

A historic vote of no confidence in the Conservative party is not evidence of long-term enthusiasm for Labour

The problems facing the best and the brightest among us are enormous. British students right now leave university with debts averaging around £45,000. According to the Student Loans Company one (anonymous) student who pursued advanced degrees has accrued student loan debts of more than £200,000. In another case, a newly qualified doctor, Dr Luke Amos, told the BBC that his student debt "became almost a joke when I saw the outstanding balance break the £100,000 barrier".

And then, although it will not be presented by Mr Starmer in exactly this way, what does the triumphant new Labour government do about Britain’s image abroad? Can we reverse our decline in hard power? The British army has been under-resourced to the point where even the former Conservative Defence Secretary Ben Wallace suggested it was only good for “tootling around” at home.

As a result of Brexit, Britain has made itself much less significant within Europe. The knock-on effect recognised by diplomats is that the UK is now also less important to its indispensable ally, the US.

The New York Times graphically illustrated the UK’s difficulties for its politically savvy and internationally minded readers this week. They reported that in the UK food bank use has increased by 5000 per cent in the 14 years the Conservatives were in power. Graduate debt is up 210 per cent. Homelessness is up 120 per cent. The asylum backlog is up 1,300 per cent. Hospital waiting lists are up 210 per cent. And while cutting migration was a cornerstone Conservative policy – net migration is, in fact, up 170 per cent.

That list of problems and failures sunk the Conservative party to a truly historic, inevitable and – many commentators might conclude – deserved defeat. But that same list has now become the Keir Starmer in-tray. Starmer has therefore been extremely cautious about promising immediate improvements.

But the key takeaway from this election is an extraordinary hunger and mandate for change. Big names in the Conservative party have been punished and humiliated for their years of failure.

The Conservatives will head into bitter in-fighting (no change there) and are split between traditional moderate right-wing policies and some radical far-right ideas. They have lost seats in every direction including to the troublesome Reform party of Nigel Farage.

Nigel Farage has won his first seat in parliament. Reuters
Nigel Farage has won his first seat in parliament. Reuters

Mr Farage, after seven previous failed attempts is now – eighth time lucky – at last an MP. His well-financed right-wing Reform party is now a force to be reckoned with and more trouble for the Conservatives. But Labour are the clear winners. They have plenty of ideas, even if the scale of change they believe is necessary will take a decade.

Labour has even succeeded in turning back the tide of Scottish nationalism, winning back many seats from the Scottish National Party. They have helped wipe out the Conservatives in Wales, and the Conservative allies in Northern Ireland, the Democratic Unionist Party have suffered setbacks. Sinn Fein has done well. The Conservatives are therefore essentially an English – rather than British – political party now.

But the election – and the future – belongs to Labour. The British people have shown their impatience with failure and a suspicion of the promises of governments and politicians of all types.

One of the little-discussed but interesting statistics about the UK is that British people tend to trust each other much more than citizens of comparable OECD countries. But we trust our governments less than other comparable countries. That means the Keir Starmer honeymoon is likely to be brief.

He will, however, be helped for a time by his political enemies. The Conservative party for years has been having a kind of nervous breakdown. The bitterness on the right of British politics is based on grudges, personal ambitions and loathing, and that will undoubtedly continue.

Mr Starmer will enjoy the briefest of honeymoons because the real problem he faces is not that anyone doubts his victory. It is that in terms of seats the Labour Party has won a landslide but in terms of votes, under the peculiar British system of First Past The Post, Labour has not received a vastly different share of the votes from its big historic loss in the 2019 general election.

Mr Starmer has begun to climb the mountain of power. He talks well of the politics of public service, saying that “it is now time for us to deliver.” Well, that’s true. But when your vote share is the same as in 2019 – one of Labour’s worst defeats in almost a century – and in 2024 that same vote share produces one of your best results, Mr Starmer has to be humble in victory not triumphant.

A historic vote of no confidence in the Conservative party is not evidence of long-term enthusiasm for Labour. The Labour project has an enormous parliamentary mandate and for now a great deal of good will. But – as a former British prime minister once said of his opponent – “you were the future once.”

Follow the UK General Election results

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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”.

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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

World Test Championship table

1 India 71 per cent

2 New Zealand 70 per cent

3 Australia 69.2 per cent

4 England 64.1 per cent

5 Pakistan 43.3 per cent

6 West Indies 33.3 per cent

7 South Africa 30 per cent

8 Sri Lanka 16.7 per cent

9 Bangladesh 0

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Omar Yabroudi's factfile

Born: October 20, 1989, Sharjah

Education: Bachelor of Science and Football, Liverpool John Moores University

2010: Accrington Stanley FC, internship

2010-2012: Crystal Palace, performance analyst with U-18 academy

2012-2015: Barnet FC, first-team performance analyst/head of recruitment

2015-2017: Nottingham Forest, head of recruitment

2018-present: Crystal Palace, player recruitment manager

 

 

 

 

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

QUARTER-FINAL

Wales 20-19 France

Wales: T: Wainwright, Moriarty. Cons: Biggar (2) Pens: Biggar 2

France: T: Vahaamahina, Ollivon, Vakatawa Cons: Ntamack (2)

What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods

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Mario Benedetti, Penguin Modern Classics

 

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Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

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Director: Remo D’Souza
Cast: Salman Khan, Anil Kapoor, Jacqueline Fernandez, Bobby Deol, Daisy Shah, Saqib Salem
Rating: 2.5 stars

The past Palme d'Or winners

2018 Shoplifters, Hirokazu Kore-eda

2017 The Square, Ruben Ostlund

2016 I, Daniel Blake, Ken Loach

2015 DheepanJacques Audiard

2014 Winter Sleep (Kış Uykusu), Nuri Bilge Ceylan

2013 Blue is the Warmest Colour (La Vie d'Adèle: Chapitres 1 et 2), Abdellatif Kechiche, Adele Exarchopoulos and Lea Seydoux

2012 Amour, Michael Haneke

2011 The Tree of LifeTerrence Malick

2010 Uncle Boonmee Who Can Recall His Past Lives (Lung Bunmi Raluek Chat), Apichatpong Weerasethakul

2009 The White Ribbon (Eine deutsche Kindergeschichte), Michael Haneke

2008 The Class (Entre les murs), Laurent Cantet

Greatest Royal Rumble results

John Cena pinned Triple H in a singles match

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Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus

Jeff Hardy retained the United States title against Jinder Mahal

Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos

Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe

AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out

The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

The specs

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Breast cancer in men: the facts

1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.

2) Symptoms can include a lump, discharge, swollen glands or a rash. 

3) People with a history of cancer in the family can be more susceptible. 

4) Treatments include surgery and chemotherapy but early diagnosis is the key. 

5) Anyone concerned is urged to contact their doctor

 

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport

Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada

Father of two sons, grandfather of six

Plays golf once a week

Enjoys trying new holiday destinations with his wife and family

Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

Updated: July 12, 2024, 3:44 AM