Boris Johnson leaves a press conference after announcing a Brexit trade deal had finally been agreed. Getty
Boris Johnson leaves a press conference after announcing a Brexit trade deal had finally been agreed. Getty
Boris Johnson leaves a press conference after announcing a Brexit trade deal had finally been agreed. Getty
Boris Johnson leaves a press conference after announcing a Brexit trade deal had finally been agreed. Getty

The Brexit deal is not going to make the far-right disappear


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For a while it seemed as if the UK might leave the EU on the worst possible terms, resulting from a "no-deal Brexit". But on Christmas Eve, Britain struck an agreement with the European Union for a free-trade agreement. A collective sigh of relief followed. But what does this new world of post-EU membership mean for the UK?

Britain is still a part of the European continent, EU membership or not. And a number of other European countries, such as Switzerland and Norway, have resisted joining the Union. But the UK is not going to be like either of them. It is the first country on the continent to have been a former member. And with that comes a great deal of baggage, which we have yet to fully appreciate and understand.

Many analysts have rightly pointed out the potential economic impacts of this rather foolhardy endeavour. Within the EU, the UK had a particularly privileged economic and political position, as compared with any other member state. There was already a perception that Britain was having its cake and eating it too.

That is now over. As a recent report from King's College London noted, we are indeed getting a Canada-style trade deal. But it is not similar to the one Canadians have with the EU. It is like the one Canadians have with the US, which operates on a completely different basis. The US is Canada's main trading partner – not the other way round. Canada is in a tremendously weaker position in any negotiation, as compared to the US for whom Canada represents a minor trade partner. This is now the UK's lot when it comes to the EU, and it will not be pretty.

A vehicle passes an anti-Brexit pro-Irish unity billboard seen from the Dublin road in Newry, Northern Ireland, October 1, 2019. AFP
A vehicle passes an anti-Brexit pro-Irish unity billboard seen from the Dublin road in Newry, Northern Ireland, October 1, 2019. AFP

But this is not just about economics. Following the Brexit referendum of 2016, I met with a notable English lecturer at the University of Cambridge. We discussed at length the future of the far-right in the UK. Indeed, this particular lecturer had been sceptical of the EU in the first place, because of his worries that the far-right was mainstreaming quite dramatically within different EU countries. He was concerned that the far-right might thus eventually negatively impact European institutions – and that would also have repercussions here in the UK.

When we met, though, we discussed the possibility that Brexit might be somehow overturned. He pointed out that if that happened, the far-right in the UK would become more radicalised, out of a sense of being cheated, which was hardly the desired outcome.

Perhaps then, Brexit has avoided this type of radicalisation. But at what cost? The Brexit deal is not going to make the far-right disappear. On the contrary, as a force in British politics, such elements may simply continue under another name, where they will have yet more currency, and far more space to go mainstream.

A Brexit trade agreement was struck between Britain and the EU after four years of negotiations. AFP
A Brexit trade agreement was struck between Britain and the EU after four years of negotiations. AFP

There is virtually no scenario where the British economy will not contract over the coming years. There will be difficult times ahead. The question then becomes, how will the British political elite on the right respond to that? Will they be honest and say this is the inevitable consequence of the choice to leave the EU? Or will they take their cue from those with even more extreme views, blaming "external forces", especially the EU, for the predicament we find ourselves in?

I suspect the latter. It has already been the case that blaming the EU, which is not responsible for the UK's political choices, is cynically used so that the UK can shirk its responsibilities. And it does not stop there. In Britain, we also run the risk of seeing an increase in anger, but through an ever more fringe and far-right lens, over immigration issues, which have already been present in large parts of the electorate for some time.

The UK is experiencing a surge in migrants crossings, December 4, France. AFP
The UK is experiencing a surge in migrants crossings, December 4, France. AFP

Where does that leave us, then? In the same place, but only worse. Already we have lacked political leadership, someone of calibre who would not respond to base populism by bending to it but by challenging it. If we had a different kind of leader, we might have averted Brexit altogether and instead helped reform the EU from within.

At the very least, the UK, under more capable leadership, could have struck a better deal, one in which we stayed within the single market. The effects of this narrow parochialism are not just about EU membership, but about preventing the empowerment of the worst parts of our society. Warding those off must continue, irrespective of Brexit.

Dr HA Hellyer, a Carnegie Endowment scholar, is a senior fellow at the Royal United Services Institute and Cambridge University

No_One Ever Really Dies

N*E*R*D

(I Am Other/Columbia)

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
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

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

SPECS
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The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

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The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 240hp at 5,500rpm

Torque: 390Nm at 3,000rpm

Transmission: eight-speed auto

Price: from Dh122,745

On sale: now

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.