Prime Minister Boris Johnson leaves Downing Street to head to the Houses of Parliament. Bloomberg
Prime Minister Boris Johnson leaves Downing Street to head to the Houses of Parliament. Bloomberg
Prime Minister Boris Johnson leaves Downing Street to head to the Houses of Parliament. Bloomberg
Prime Minister Boris Johnson leaves Downing Street to head to the Houses of Parliament. Bloomberg

Boris Johnson faces official inquiry over Downing Street flat renovations


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Britain's Electoral Commission launched a formal investigation into the funding of renovations to Prime Minister Boris Johnson's Downing Street flat.

The watchdog said on Wednesday that there "were reasonable grounds to suspect that an offence or offences may have occurred".

The inquiry was announced an hour before Mr Johnson faced MPs at an ill-tempered Prime Minister's Questions during which he was challenged over who payed for the renovations.

He was also forced to explain a reported remark that he would rather "let bodies pile high" than order another Covid-19 lockdown.

Mr Johnson repeatedly dodged Labour Party leader Sir Keir Starmer's questions over who initially paid for the renovations.

"I have covered the costs and I think most people will find it absolutely bizarre that he is focusing on this issue," Mr Johnson said.
"This is a government that gets on delivering people's priorities while he continues to raise issues most people find irrelevant to their concerns."

Asked if he believed any rules were broken in relation to the renovations, Mr Johnson replied: "No, I don't.

"What I believe has been strained to breaking point is the credulity of the public," he said. "He goes on and on about wallpaper when I’ve told him umpteen times now I paid for it."

Mr Johnson denied telling a Cabinet meeting on Covid-19 in October he would rather "let the bodies pile high in their thousands" than order another lockdown.

"If [Mr Starmer] is going to repeat allegations like that, he should come to the house and substantiate them," he said.

"They were very bitter, very difficult decisions because no prime minister wants to put this country into lockdown."

Mr Starmer gave Mr Johnson the nickname "Major Sleaze" after a series of recent scandals, an apparent riposte to the "Captain Hindsight" moniker Mr Johnson used for the Labour leader.

“Dodgy contracts, jobs for their mates and cash for access – and who is at the heart of it? The prime minister, Major Sleaze sitting there," Mr Starmer said.

Earlier, the Electoral Commission said it had been in contact with the Conservative Party on the issue of the flat since late March.

"We are now satisfied that there are reasonable grounds to suspect that an offence or offences may have occurred," the Commission said.

"We will therefore continue this work as a formal investigation to establish whether this is the case."

The body said it was examining whether funding of the works fell foul of rules on donations to political parties.

"The investigation will determine whether any transactions relating to the works at 11 Downing Street fall within the regime regulated by the Commission and whether such funding was reported as required," it said.

"We will provide an update once the investigation is complete."

Asked last month about the refurbishment, Mr Johnson's spokeswoman said all donations, gifts and benefits were properly declared, and that no Conservative Party funds were used to pay for the refurbishment.

Mr Johnson has a taxpayer-funded £30,000 ($42,000) allowance each year for maintaining and furnishing his official residence, but any more must be met by the prime minister.

Prime Minister Boris Johnson speaks in the House of Commons on Wednesday. Reuters
Prime Minister Boris Johnson speaks in the House of Commons on Wednesday. Reuters

Ministers said Mr Johnson paid for the work himself, but it is unclear when he paid, and whether the refurbishment, reported to have cost £200,000, was financed initially by a loan. Under political financing rules, Mr Johnson would be required to declare this.

The opposition Labour Party demanded an explanation.

Its deputy leader Angela Rayner wrote to Simon Case, the head of the civil service, asking him to investigate comments on the matter by Mr Johnson's press secretary this year.

Allegra Stratton, a former BBC journalist, was the prime minister's press secretary from October until last week.

Dominic Cummings, who was Mr Johnson's key adviser on the Brexit campaign and helped him to win the general election in 2019 before an acrimonious split last year, said Mr Johnson wanted donors to pay for the renovation secretly.

Mr Cummings said he told the prime minister such plans were "unethical, foolish and possibly illegal".

Asked if Mr Johnson received a loan from the Conservative Party for the refurbishment, Transport Secretary Grant Shapps said on Wednesday: "The prime minister has already paid for it."

More on Boris Johnson

UK Labour Party calls for inquiry into 'cover-up' of Boris Johnson's flat renovations

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4.35pm: Tilal Al Khalediah
5.10pm: Continous
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7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
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1. Australia 52; 2. New Zealand 44; 3. South Africa 36; 4. Sri Lanka 35; 5. UAE 27; 6. India 27; 7. England 26; 8. Singapore 8; 9. Malaysia 3

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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

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8. Pillar 2 implementation 

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

How much do leading UAE’s UK curriculum schools charge for Year 6?
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Who has lived at The Bishops Avenue?
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PAKISTAN SQUAD

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Simran

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Three stars

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Transmission: 10-speed auto

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Price: from Dh94,900

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Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.

Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.

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Our Time Has Come
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ANATOMY%20OF%20A%20FALL
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RACECARD
%3Cp%3E5pm%3A%20Al%20Shamkha%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%201%2C400m%0D%3Cbr%3E5.30pm%3A%20Khalifa%20City%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C400m%0D%3Cbr%3E6pm%3A%20Masdar%20City%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C600m%0D%3Cbr%3E6.30pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%202%2C200m%0D%3Cbr%3E7pm%3A%20Emirates%20Championship%20%E2%80%93%20Group%201%20(PA)%20Dh1%2C000%2C000%20(T)%202%2C200m%0D%3Cbr%3E7.30pm%3A%20Shakbout%20City%20%E2%80%93%20Handicap%20(TB)%20Dh80%2C000%20(T)%202%2C400m%3C%2Fp%3E%0A

Who is Ramon Tribulietx?

Born in Spain, Tribulietx took sole charge of Auckland in 2010 and has gone on to lead the club to 14 trophies, including seven successive Oceania Champions League crowns. Has been tipped for the vacant New Zealand national team job following Anthony Hudson's resignation last month. Had previously been considered for the role. 

Types of bank fraud

1) Phishing

Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.

2) Smishing

The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.

3) Vishing

The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.

4) SIM swap

Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.

5) Identity theft

Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.

6) Prize scams

Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.

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The burning issue

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Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
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Countries so far running: 

  • UAE
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Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
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Director: Athale

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

A general guide to how active you are:

Less than 5,000 steps - sedentary

5,000 - 9,999 steps - lightly active

10,000  - 12,500 steps - active

12,500 - highly active

UAE currency: the story behind the money in your pockets