Two of London's famous Michelin-starred restaurants have closed for lunchtime trading because of a staffing crisis caused by Brexit and the coronavirus pandemic.
On Wednesday, Prime Minister Boris Johnson hailed the fifth anniversary of the Brexit referendum as an opportunity to create more jobs and revitalise Britain.
But David Moore, the founder of Pied a Terre in London, said that the hospitality industry was facing a recruitment crisis because of the large number of foreign citizens leaving the country.
Mr Moore said Brexit was "definitely the biggest" factor behind the staff shortage that has forced him to close at lunchtimes.
French celebrity chef Michel Roux Jr, who owns the two Michelin-starred Le Gavroche restaurant in upmarket Mayfair, said it was “incredibly frustrating and painful” that he was also being forced to close at lunchtimes.
"The past year has sadly taken a great toll on the hospitality industry, but with restaurants finally being allowed to reopen, to everybody's relief, there is still a trickle effect of major problems affecting our industry, in this instance, staffing," he said.
"Since opening, restaurants up and down the country have suffered greatly with staffing problems partly due to new Brexit regulations as well as there now being a major lack of well-trained hospitality professionals since the pandemic struck.
“Whilst we have been working our hardest to resolve this issue over the last couple of months, Le Gavroche is sadly understaffed for the time being.”
UK Hospitality says 1.3 million foreign workers left the UK during the pandemic, ahead of next week's deadline for EU citizens living in the UK to apply for settled status.
So far 5.6 million applications have been received – significantly more than the 3.7 million the government estimated.
In some London boroughs the number of applicants was 80 per cent higher than their estimated population of EU citizens.
But Mr Moore said people were not responding to job adverts despite the salaries advertised.
"I don't know anybody who is not looking for a kitchen porter," he told the BBC.
Mr Johnson, the face of the successful Vote Leave campaign, said the referendum in 2016 and subsequent divorce from the bloc had given Britain an opportunity to “seize the true potential of our regained sovereignty”.
“With control over our regulations and subsidies, and with freeports driving new investment, we will spur innovation, jobs and renewal across every part of our country,” he said.
“The decision to leave the EU may now be part of our history but our clear mission is to utilise the freedom it brings to shape a better future for our people.”
But Mr Johnson’s enthusiasm is not shared by the majority of the UK, new poll results indicate.
A survey by Savanta ComRes found that if the referendum were held today the result would be a narrow win for Remain – by 51 per cent to 49 per cent – if those undecided were discounted.
On June 23, 2016, 51.9 per cent voted Leave and 48.1 per cent Remain.
The poll found that 6 per cent of Remain voters in 2016 would now vote Leave and 7 per cent of Leave voters would support Remain.
About a third of respondents – 31 per cent – regard Brexit as a success, with the same proportion viewing it as a failure.
The divided views stem from years of political instability leading to Mr Johnson's resounding election victory in December 2019.
He succeeded former prime minister Theresa May, who resigned after failing to unite the ruling Conservative Party behind her Brexit deal with the EU.
Mrs May's woes started after a damaging strategic error in 2017 when she called a snap election to strengthen her negotiating position with the bloc.
But she ended up losing her majority in the House of Commons.
Her predecessor David Cameron resigned as prime minister hours after the referendum result was announced.
Joao Vale de Almeida, the EU ambassador to the UK, said Brexit was "done, in a way, but not done, in another way".
"I think the worst way to respect Brexit is to keep fighting battles of the past and to keep trying to score points on disputes of the past," he told The Times.
Reflecting on the future of the UK and the EU, he said: “I don’t know what our relationship will be in 20 years’ time. I don’t know what the EU will be like in 20 years.
“And maybe I don’t know what your union here will be like in 20 years’ time. Who knows? So we have to be ready for change.”
The UK is facing several major issues linked to Brexit since the split.
In Northern Ireland, a dispute over the trading arrangement that effectively treats the province as part of the EU has threatened to collapse the power-sharing arrangement at Stormont.
Police also warned about the possibility of further violence in the province after numerous incidents in recent months.
In May, Britain's Royal Navy was sent to Jersey after French fishermen threatened a blockade in a dispute over fishing rights in waters off the British crown dependency.
Meanwhile, Scottish First Minister Nicola Sturgeon – buoyed by election results in May – is pushing for a second independence referendum.
Lord Michael Heseltine, a former deputy prime minister and now the president of campaign group European Movement, said the situation was chaotic.
“Five years on, Brexit is far from ‘done’. It has only just begun and the forecast is ominous,” he said.
“Storm clouds are gathering on the horizon, chief among them the threat to the Good Friday peace agreement in Northern Ireland.”
The main opposition Labour Party also cited the unrest in Northern Ireland as among Mr Johnson’s most pressing issues.
“There is a direct line from the prime minister’s dishonesty over the deal he negotiated, to the instability we see in Northern Ireland today,” Shadow Northern Ireland Secretary Louise Haigh said.
“The prime minister pledged never to put barriers down the Irish Sea and then a few months later did exactly that – this dishonesty is still having real consequences.”
The Details
Article 15
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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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Our family matters legal consultant
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
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UAE currency: the story behind the money in your pockets
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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