The government is being urged to support research efforts at institutions such as the University of Oxford. AFP
The government is being urged to support research efforts at institutions such as the University of Oxford. AFP
The government is being urged to support research efforts at institutions such as the University of Oxford. AFP
The government is being urged to support research efforts at institutions such as the University of Oxford. AFP

UK government urged to put universities at heart of Covid economic recovery


Jamie Prentis
  • English
  • Arabic

The UK government is being urged to ensure England’s universities play a central role in the economic recovery from the Covid-19 pandemic.

Universities UK, which describes itself as the collective voice of 140 higher education institutions in the country, said the sector contributed £95 billion ($128.35bn) to the economy and supported more than 815,000 jobs.

Ahead of its three-year spending review next month, the government was told it should ensure sustainable funding for universities, maintain the UK’s position as a research leader and support students from disadvantaged and mature backgrounds.

That was according to UUK’s submission to the government before the spending review, which was aided by new research from consultancy Frontier Economics.

“Universities have been celebrated for being front and centre in the fight against coronavirus, but it is also important to recognise the livelihoods they support through creating and supporting jobs and businesses across the country,” said Prof Steve West, president of Universities UK and vice chancellor of UWE Bristol.

“The economic and cultural contribution of our universities is vast and benefits communities across all parts of the UK. Universities can be central to speeding up the UK’s recovery from the pandemic.”

According to UUK, about 191,000 nurses, 84,000 medical specialists and 188,000 teachers could train at UK universities over the next five years.

It also highlighted the economic impact that universities had outside London, including the jobs supported in the north-east (32,000) and the south-west (85,000).

“Now is the time for government to capitalise on the strength of our world-class universities, working with us to ensure universities have the right funding environment to drive economic growth, create new jobs and improve opportunities for people of all ages and backgrounds,” Prof West said.

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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

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

New Zealand 15 British & Irish Lions 15

New Zealand 15
Tries: Laumape, J Barrett
Conversions: B Barrett
Penalties: B Barrett

British & Irish Lions 15
Penalties: Farrell (4), Daly

Updated: September 29, 2021, 9:46 AM