Britain is seeing a second wave of the coronavirus outbreak, Prime Minister Boris Johnson said on Friday, as millions more people faced new restrictions and the government warned that another national lockdown could be imminent.
"There's no question, as I've said for several weeks now, that we could expect and are now seeing a second wave coming in," said Mr Johnson as he toured the site of a new vaccines centre in Didcot, near Oxford.
"We are seeing it in France, in Spain, across Europe - it has been absolutely, I'm afraid, inevitable we were going to see it in this country."
His gloomy announcement came as government scientific advisors said the R number representing the number of people an infected person will pass the virus to rose to between 1.1 and 1.4, up from 1.0 to 1.2 last week.
"This is undoubtedly concerning," said Kevin McConway, emeritus professor of applied statistics at the Open University.
"Even at growth rates within the estimated range, the number of new cases could grow to high levels quickly if the interventions are not sufficiently effective."
Tighter rules preventing people from socialising with anyone from outside their household come into force from Tuesday across parts of northwest, northern and central England.
Food and drink venues will only be allowed to serve at tables, while pubs and bars will be shut early at 10pm.
Similar rules were imposed in north-east England on Friday, which put more than two million people under some of the most stringent restrictions since a nationwide lockdown was eased.
Health Secretary Matt Hancock said the move followed a request from local authorities because of a surge in positive cases.
He also warned the government could re-impose the nationwide lockdown which was partially lifted in June, as the rates of hospital admissions were now doubling every eight days.
"We want to avoid a national lockdown but we're prepared to do it if we need to," he told BBC television, vowing to "do what it takes" to protect the public.
Mr Johnson said a second national lockdown was "the last thing anybody wants", and urged adherence to social distancing guidelines limiting contacts to groups of six or fewer.
Government's pandemic response under scrutiny
The rise in cases heaps fresh pressure on Mr Johnson's government, which has been criticised for its response to the outbreak, which has claimed nearly 42,000 lives - the highest toll in Europe.
Numbers of new cases are reaching levels not seen since April, reflecting a similar picture across the continent, where the World Health Organisation said there were "alarming rates of transmission".
Britain's Office for National Statistics (ONS) confirmed on Friday in its weekly infection survey that "the incidence rate for England has increased in recent weeks".
It estimated there were around 6,000 new daily cases nationwide over the week to September 10 -roughly double the number typically recorded in statistics released every day by the health ministry.
Public Health England medical director Yvonne Doyle said there were "clear signs" of a spread of the virus across all age groups, and a rise in hospital admissions of older people.
"This could be a warning of far worse things to come," she added.
The ONS noted there was evidence of higher infection rates in London, as well as north-west England. But Mr Johnson's spokesman said "no restrictions are currently planned" in the capital.
Government scientists have reportedly proposed a blanket lockdown to come into force across England over two weeks in October, to coincide with English schools' half-term holiday.
But the spokesman pushed back against the report.
The government has faced sustained criticism for its failure to achieve the "world-beating" testing and tracing system it promised would be in place over the summer months.
Mr Hancock defended the testing programme, and said the government was "doing everything we possibly can for the cavalry that's on the horizon of the vaccine and mass testing".
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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
The Brutalist
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Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
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Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Director: Neeraj Pandey
Rating: 2.5/5