It is early days but a nag is developing where Rishi Sunak’s suitability as prime minister is concerned. Has Britain got itself a chief of finance for a CEO?
In the corporate world it is well-known that the moneymen do not usually make the best chief executives. They require different skill sets. One is a number-cruncher, concerned with figures and spreadsheets, the other is a leader, manager of the big picture, someone who knows how to extract the best from their teams across all areas.
Indeed, often the role of a good finance director is to challenge the chief executive officer, to question the path they wish to embark upon. The former is a number two position.
In Britain’s government hierarchy, that traditionally is the job of the chancellor of exchequer. And in Britain currently, we have two chancellors.
Sunak, a former chancellor, appears to be taking a hands-on interest in the work of the present chancellor, Jeremy Hunt. Which begs the question, what is Hunt for?
Of course, the UK is in poor economic health but it’s the task of the chancellor and their Treasury department to come up with a convincing plan for treatment. That programme would then be presented to the prime minister and the rest of the Cabinet for approval.
Instead, we’re informed that Mr Sunak is engaged constantly on proposals to fill the public spending gap, that he devoted much of this past weekend to that conundrum. It was given as an excuse for him not wishing to attend the Cop27 climate change talks in Egypt. Latterly, the indication is that he has changed his mind and he may now go, but that only appears to be because his nemesis Boris Johnson is said to be going.
The signal his original non-attendance sent, that Britain is pushing climate change down its priorities — unlike the US and France, with their presidents Joe Biden and Emmanuel Macron both going to Cop — was bad enough. This, as well, after Mr Sunak removed the Cabinet status of the Cop minister, Alok Sharma.
Mr Sunak, a banker and hedge fund manager before entering Parliament, may be happiest poring over accounts. It could be his comfort blanket, his default. That is unlikely to make him a successful prime minister.
Inspiration or perspiration
The consultancy firm McKinsey once conducted a survey on whether chief financial officers make suitable CEOs. Noted McKinsey: “In our informal poll, for every respondent who believed strongly that CFOs make good CEOs, another vehemently opposed the idea.”
Respondents observed that “CFOs are often without leadership skills, are weak at motivating and inspiring teams, and have a propensity to retain rather than delegate control.”
We’ve been here before in the UK, most notably and recently when Gordon Brown took over from Tony Blair in 2007. Mr Brown, the long-time chancellor, was humiliatingly voted out as prime minister in the May 2010 general election.
Mr Brown, too, spent the first part of his period as PM overseeing a financial rescue package, in his case in response to the 2008 banking crash.
Mr Sunak betrays signs of wishing to focus on the narrow task in hand rather than the broader long term. In a comment piece for the Mail on Sunday he went on at length about how he would be tackling the economy. Yet again we were told that “tough decisions” would be made.
Then, at somewhat breathtaking speed we were informed that once immediate issues were dealt with, he would be levelling up, delivering “world-class education”, putting 20,000 more police on the streets, controlling the borders and developing energy security. These and others he cited, were contained in the 2019 Conservative manifesto. But he offered no detail as to how, precisely, they were to be accomplished.
Rather, “we will build an economy that modernises and embraces the opportunities of Brexit, where businesses invest, innovate and create jobs.” This ignores the fact that so far, as even some ardent Brexiteers are beginning to concede, there has been precious sign of the so-called “Brexit dividend”.
The point about this current economic dip is that it’s temporary. Mr Sunak says so himself. We will get over it. “The confidence and determination that are the hallmarks of our great nation will carry us through the tough times and towards a new age of hope and optimism.” So, why does he spend so long dwelling on it? He should be projecting ahead and providing us with his detailed vision for the NHS, state schools, welfare, law and order, and managing climate change.
Also, doesn’t the prediction of a “new age of hope and optimism” smack rather of a wing and a prayer? Put him on to the economic crisis and he speaks of the need to balance the books, of making “difficult choices” to “get our borrowing and our debt back on a sustainable path.” Once that’s achieved, however, it’s back to the same old boosterism and platitudes.
There’s a reason why so few CFOs become CEO and fewer still become a successful CEO. Mr Sunak must stop being chancellor and prove he has what it takes to join that elite few.
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
SPECS
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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
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UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Liz%20Truss
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
England squads for Test and T20 series against New Zealand
Test squad: Joe Root (capt), Jofra Archer, Stuart Broad, Rory Burns, Jos Buttler, Zak Crawley, Sam Curran, Joe Denly, Jack Leach, Saqib Mahmood, Matthew Parkinson, Ollie Pope, Dominic Sibley, Ben Stokes, Chris Woakes
T20 squad: Eoin Morgan (capt), Jonny Bairstow, Tom Banton, Sam Billings, Pat Brown, Sam Curran, Tom Curran, Joe Denly, Lewis Gregory, Chris Jordan, Saqib Mahmood, Dawid Malan, Matt Parkinson, Adil Rashid, James Vince