Tory leadership race: Mordaunt tells party to play its greatest hits in duel with Sunak


Tim Stickings
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Penny Mordaunt likened herself to a rock star playing the Conservative Party's favourite tunes on Wednesday as she promised to turn the government's focus to core issues such as childcare and the economy after the endless scandal and chaos that brought down Boris Johnson.

Ms Mordaunt, one of eight candidates still standing in the race to be Britain's next prime minister, used her first major speech of the campaign to tell Tory MPs she was the person the opposition "fears the most", hours before they started voting in the first round of balloting.

"Recently, our party has lost its sense of self," said Ms Mordaunt, who is seen as a potential unity candidate after serving quietly as a junior minister under Mr Johnson without being too closely tied to his government or making enemies by rebelling against him.

She said: "If I can compare it to being in the Glastonbury audience, when Paul McCartney was playing his set - we indulged all those new tunes, but what we really wanted was the good old stuff that we all knew the words to: low tax, a small state, personal responsibility."

In other developments:

- Voting ended in the first round of balloting among Tory MPs, with results to be announced later;

- Early favourite Rishi Sunak said his economic policy would amount to “common-sense Thatcherism”;

- His camp denied claims that it was lending votes to less favoured candidates to muddy the contest's waters and give Mr Sunak an easier path to victory;

- Ms Mordaunt received a major boost from polling suggesting she would beat any of her rivals in a final-round vote, including Mr Sunak;

- Former soldier Tom Tugendhat said security should come before “bean counters and spreadsheets” in an apparent swipe at Mr Sunak’s caution on defence spending;

- Foreign Secretary Liz Truss won the backing of two prominent figures on the Tory right, former Conservative leader Iain Duncan Smith and fervent Brexiteer Mark Francois;

- Chancellor Nadhim Zahawi acknowledged Mr Sunak was the front-runner but said he had a “fully costed” plan to cut taxes.

As Ms Mordaunt and her rivals including Ms sought to establish themselves as the main challenger to front-runner Mr, two candidates made a play to inherit the mantle of 1980s prime minister and conservative icon Margaret Thatcher.

Ms Mordaunt, a naval reservist, said watching as a child when British warships set off for the 1982 Falklands War was the moment that inspired her to serve her country and taught her: "My country stood up to bullies".

Meanwhile, Mr Sunak told the Daily Telegraph in his first campaign interview that his economic policies would amount to "common-sense Thatcherism", after critics accused him of presiding over an era of high taxes and spending.

"We will cut taxes and we will do it responsibly. That's my economic approach," he said. "I would describe it as common-sense Thatcherism. I believe that's what she would have done."

But Truss backer Jacob Rees-Mogg, who said some candidates saw Thatcher's name as a "golden ticket" to the leadership, said Mr Sunak's record of raising taxes made him more akin to a left-wing chancellor.

Liz Truss received backing from two prominent figures on the right of the party. Getty
Liz Truss received backing from two prominent figures on the right of the party. Getty

Mr Sunak's resignation from government last week set in motion a mass frontbench mutiny that culminated in Mr Johnson announcing his resignation, triggering the two-month contest to replace him.

Mr Johnson's government announced a confidence vote in itself on Wednesday in a convoluted manoeuvre meant to ensure that he stays in office until a new leader is elected.

The first round of voting among Tory MPs, which was taking place on Wednesday afternoon, requires candidates to win at least 30 votes to progress. If everyone clears that hurdle, the lowest-ranked candidate will be knocked out.

The process will be repeated in successive votes over the coming week until only two remain, at which point the wider Conservative Party membership will be given the final word. A winner will be announced in early September.

As of Wednesday lunchtime, Mr Sunak had 43 MPs openly supporting him, compared to 24 for Ms Mordaunt and 21 for Ms Truss.

But many more have made their preference known in private. Tom Tugendhat, Kemi Badenoch, Nadhim Zahawi, Jeremy Hunt and Suella Braverman all put together the necessary 20 signatures to make the first ballot, despite not having that many public endorsements.

Former health secretary Sajid Javid and long-shot candidate Rehman Chishti dropped out of the race after failing to qualify for the first round, with Mr Chishti finding no known backers other than himself.

Ms Mordaunt joked that she had been "undertaking the parliamentary equivalent of speed dating" in recent days as she lobbied for support at Westminster.

She told colleagues a government led by her would have a "relentless focus" on lowering the cost of living, including by cutting VAT on fuel and raising income tax thresholds in line with inflation.

Her other ideas include creating flexible "childcare budgets" for parents with young children, creating pots of money for MPs to spend in their constituencies, setting up task forces to speed up healthcare and housebuilding, and bringing more private money into plans to "level up" the north of England.

She said she wanted to free up money for the armed forces by handing some of its duties to a civil defence force.

The British public are "capable and responsible people. They expect their government to be too," she said. "They expect us to deliver on both the mandate and the majority they handed us. I can, and we will."

UK Conservatives on the leadership campaign trail - in pictures

'Dirty tricks'

Nadine Dorries, a Cabinet minister and Johnson loyalist, accused Mr Sunak's team of playing "dirty tricks" by donating endorsements to Mr Hunt to keep him in the race.

"Team Rishi want the candidate they know they can definitely beat in the final two and that is Jeremy Hunt," she said.

Grant Shapps, who dropped out of the race and joined the Sunak campaign on Tuesday, denied those allegations and said an attempt to assist Mr Hunt "just didn't happen".

"Jeremy Hunt himself has said everybody on his nomination paper is somebody who is very close to his campaign," Mr Shapps told Sky News. "So even he has rubbished it."

Mr Zahawi said there was "no doubt" Mr Sunak was in the lead but said he could still make up ground on his rival as he touted his own record overseeing Britain's Covid-19 vaccination campaign.

"Rishi is out in the lead, no doubt, he is a very talented man," Mr Zahawi said. "But I think I can deliver. I am the man who has a track record of operational competence."

Conservative leadership candidates - in pictures

Jonathan Tonge, a professor of politics jokingly described as a mystic for his near-perfect prediction of a ballot on Mr Johnson's leadership last month, said he would give Mr Sunak a 51-49 chance of victory.

He told The Guardian that Conservative members might judge Mr Sunak the most plausible prime minister and could be less obsessed with tax cuts than many candidates seem to believe they are.

While some candidates have tried to outbid each other with promises to reduce taxes, Mr Sunak's warning against "comforting fairy tales" was taken as a dissenting note, although he later said tax cuts were a matter of "when, not if".

Candidates on the right were given a clearer run after Home Secretary Priti Patel, a hardliner on immigration, said she would not enter the contest.

She made no endorsement in the race, but Cabinet ministers Dominic Raab and Mr Shapps came out for Mr Sunak, while Education Secretary James Cleverly backed Ms Truss.

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Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

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Five out of five stars 

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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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”.

TEACHERS' PAY - WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

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7.05pm: Handicap Dh170,000 (D) 1,600m. Winner: Trenchard, Pat Dobbs, Doug Watson.

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9.25pm:Handicap Dh185,000 (D) 1,400m. Winner: Midnight Sands, Pat Dobbs, Doug Watson.

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.

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Company: Justmop.com

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Founders: Kerem Kuyucu and Cagatay Ozcan

Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

Size: 55 employees and 100,000 cleaning requests a month

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: July 14, 2022, 4:11 AM