The UK could have a sudden reversal in population numbers due to the success of its vaccine drive, after the pandemic sparked an "unprecedented" exit of foreign-born workers, a leading economist told The National on Wednesday.
Figures from the Office for National Statistics suggest almost a million people born outside Britain may have returned to their home countries last year, the biggest net outflow of foreign-born workers on record.
There were 795,000 fewer foreign-born workers in Britain in the final three months of 2020 than a year earlier, and nearly a million fewer foreign-born residents aged over 16, according to the statistics.
The figures come from an official survey of Britain’s labour market, not the main immigration data, which has been suspended due to the pandemic.
For this and other reasons, the ONS said, the figures should be “used with caution”.
The data also show that between February and November last year, the number of full-time UK employees dropped sharply, although pointed to a slight recovery in recent weeks.
The method by which responses to the survey are quantified assumes the UK's overall population still grew at its pre-pandemic rate, potentially giving a misleading starting point for the estimates.
The survey was not designed to capture migration flows, and the pandemic means phone calls have replaced door-to-door interviews. This makes it harder to tell whether fewer foreign-born respondents reflect a change in the sample or an underlying change.
But Jonathan Portes of King’s College London, who was chief economist at the UK’s Department for Work and Pensions, said there was “no doubt” that at hundreds of thousands of foreign-born workers, if not more, returned home.
"This is unprecedented in British economic history, as far as we know," he said.
“It’s probably the first time that the population overall has shrunk in the last 40 years. It’s probably the biggest fall in population since the Second World War. Historically, this is a big deal.”
Prof Portes said many of the foreign workers who left the country last year would have been employed in the hard-hit hospitality and events industries forced to close during rolling lockdowns.
He said those workers could be poised to return to the UK as the country emerges from lockdown, based on the success of the vaccination programme.
More than 17.9 million people have so far received a first dose of a vaccine, statistics show, with the government aiming to have all adults inoculated by July 31.
"There is a positive scenario in that we are worse hit than other countries because we mishandled the pandemic so badly, but maybe we will recover better than other countries because of the way we have handled the vaccination programme," Prof Portes said.
"In May, the UK was one of the worst places to be in the world, but this summer the UK [will be] one of the best places to be.
"In that case you could see a very sudden reversal – perhaps the statistics are not long-term significant.
“There is obviously a pessimistic scenario where we recover, but the recovery is slow and painful and that could have quite significant consequences for the UK in general.”
He said the UK’s unemployment rate of 5.1 per cent could have been higher if it wasn’t for foreign-born workers going home, shrinking the labour market.
“Immigration and labour market flexibility helps propel job growth and it’s pushing down on it in the same way,” he said.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
COMPANY%20PROFILE
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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
Two-step truce
The UN-brokered ceasefire deal for Hodeidah will be implemented in two stages, with the first to be completed before the New Year begins, according to the Arab Coalition supporting the Yemeni government.
By midnight on December 31, the Houthi rebels will have to withdraw from the ports of Hodeidah, Ras Issa and Al Saqef, coalition officials told The National.
The second stage will be the complete withdrawal of all pro-government forces and rebels from Hodeidah city, to be completed by midnight on January 7.
The process is to be overseen by a Redeployment Co-ordination Committee (RCC) comprising UN monitors and representatives of the government and the rebels.
The agreement also calls the deployment of UN-supervised neutral forces in the city and the establishment of humanitarian corridors to ensure distribution of aid across the country.
Read more from Kareem Shaheen
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Barbie
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Fixtures
Wednesday
4.15pm: Japan v Spain (Group A)
5.30pm: UAE v Italy (Group A)
6.45pm: Russia v Mexico (Group B)
8pm: Iran v Egypt (Group B)
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Leaderboard
15 under: Paul Casey (ENG)
-14: Robert MacIntyre (SCO)
-13 Brandon Stone (SA)
-10 Laurie Canter (ENG) , Sergio Garcia (ESP)
-9 Kalle Samooja (FIN)
-8 Thomas Detry (BEL), Justin Harding (SA), Justin Rose (ENG)
Men from Barca's class of 99
Crystal Palace - Frank de Boer
Everton - Ronald Koeman
Manchester City - Pep Guardiola
Manchester United - Jose Mourinho
Southampton - Mauricio Pellegrino
Read more about the coronavirus
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence