Britain's Foreign Secretary Dominic Raab, in Belgium last week, has promised Britain will return its overseas aid budget back to previous levels when the economy recovers. EPA
Britain's Foreign Secretary Dominic Raab, in Belgium last week, has promised Britain will return its overseas aid budget back to previous levels when the economy recovers. EPA
Britain's Foreign Secretary Dominic Raab, in Belgium last week, has promised Britain will return its overseas aid budget back to previous levels when the economy recovers. EPA
Britain's Foreign Secretary Dominic Raab, in Belgium last week, has promised Britain will return its overseas aid budget back to previous levels when the economy recovers. EPA

UK vows to reverse cut in international aid when economy recovers from pandemic


Thomas Harding
  • English
  • Arabic

Britain will reverse its major cut to overseas aid spending as soon as the economy recovers from the pandemic, the UK's Foreign Secretary Dominic Raab vowed on Thursday.

Following a major backlash against Britain's reduction of more than £4 billion ($5.57bn) in international aid, Mr Raab made the unequivocal commitment to return it to 0.7 per cent of gross domestic product "when the fiscal situation allows".

Despite his promise, he faced a torrent of questions over the impact of the reduction to 0.5 per cent of GDP, including the implications to British national security in the Sahel region where ISIS is growing in strength.

Britain is the only G7 member cutting its aid budget at a time when France, Germany and the US are increasing theirs, to reach or pass the 0.7 per cent level.

The cut has been condemned by both Conservative and Labour politicians and was frequently raised during a two-hour questioning of Mr Raab by MPs on the International Development Committee on Thursday.

“This was a decision we took in sorrow and with regret because of the fiscal condition that we found ourselves in,” Mr Raab argued.

“We intend to return to the 0.7 per cent target when the fiscal situation allows, once we recover from pretty exceptional, uncertain and unprecedented circumstances.”

Concerns have been raised that the swathe of cuts to certain countries could destabilise them, including the Sahel region in West Africa, where Mr Raab was asked to make an impact assessment for aid cuts that will fall from £340 million to £23m.

“It is a very unstable area where Daesh is really mobilising, so would you do an impact assessment on the cutting of funding there to our national security?” asked Labour committee chairwoman Sarah Champion. “Wouldn't an impact assessment consider the potential threat that that might bring to this country in terms of security?”

It was something his department would look at “very carefully”, Mr Raab replied. “We obviously look at the most vulnerable countries very closely.”

The government was expected to detail its aid spending for the next financial year, country by country, but in a written statement on Wednesday it only set out new classifications as to how it plans to distribute £8.1bn in aid, about 80 per cent of its total budget.

Mr Raab said his department was studying “country-by-country plans” for how the money would be distributed. “I don't think it's realistic to think that any country will be entirely immune from the savings we have to make,” he said.

  • A worker serves a customer at a coffee shop in Naples, Italy, as the town is downgraded from a red to an orange zone. Reuters
    A worker serves a customer at a coffee shop in Naples, Italy, as the town is downgraded from a red to an orange zone. Reuters
  • A woman wearing a protective face mask reads a book in Carignano square, Turin, Italy. EPA
    A woman wearing a protective face mask reads a book in Carignano square, Turin, Italy. EPA
  • Two Air Force doctors prepare doses of vaccine at the new vaccination center set up at the Command of the 1st Air Region of the Italian Air Force in Milan, Italy. EPA
    Two Air Force doctors prepare doses of vaccine at the new vaccination center set up at the Command of the 1st Air Region of the Italian Air Force in Milan, Italy. EPA
  • People take part in a protest against vaccines next to the Chamber of Deputies in piazza Montecitorio, in Rome, Italy. EPA
    People take part in a protest against vaccines next to the Chamber of Deputies in piazza Montecitorio, in Rome, Italy. EPA
  • Guests enjoy the sunny weather as they sit in front of a restaurant in Zurich, Switzerland. Reuters
    Guests enjoy the sunny weather as they sit in front of a restaurant in Zurich, Switzerland. Reuters
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    Students at work in the University of Leiden, the Netherlands. EPA
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    Employees make the terrace of a cafe coronavirus proof in Utrecht, The Netherlands. EPA
  • A woman walks past a closed shop in Paris, France. Reuters
    A woman walks past a closed shop in Paris, France. Reuters
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    A man rides a scooter past a biker on a bridge over the canal Saint-Martin in Paris, France. Reuters
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    People attend a rally against the German government's coronavirus policy in Berlin. EPA
  • Cherry blossom trees are seen in the Old Town in Bonn, Germany. The city of Bonn have asked visitors not to come for the cherry blossom season to prevent clusters of people forming. Getty Images
    Cherry blossom trees are seen in the Old Town in Bonn, Germany. The city of Bonn have asked visitors not to come for the cherry blossom season to prevent clusters of people forming. Getty Images

The aid reduction to the impoverished people of Yemen is the only cut to be officially announced. UK aid to Yemen is to decline by 60 per cent, from £197m to £87m.

Theo Clarke, a Conservative MP on the committee, said she had heard “extremely distressing evidence from witnesses in Yemen” on the cutback’s effect on child mortality levels and the chances of creating conditions for peace.

“My overarching concern in Yemen is that the Houthis are still engaged – notwithstanding the Saudi [peace] offer – in aggressive military activity with attacks on Saudi,” said Mr Raab. “We've got to persuade the Houthis to come to the diplomatic table because that is the only way there will be a lasting peace for the people of Yemen.”

Mr Raab said that Britain had a “crisis reserve” of £30 million that could be deployed within 24 hours of a natural disaster or other emergency.

He also promised that Britain would, as host of the G7 summit in June, use its influence to assist in girls’ education around the world. “We can combine our aid spend with our diplomatic and convening power to encourage others in this team effort to get 40 million more girls into education and 20 million more literate by the age of 10,” he said.

Ms Champion said she had been told by some NGOs that children were going hungry because the Foreign Office was not signing off cheques. Mr Raab denied this.

He was also challenged over Britain’s recent decision –announced in its Integrated Review of defence and security – to expand its nuclear missile arsenal by 40 per cent, with the accusation that it was “a wasted amount of money”, especially during the pandemic.

“This is maintaining minimum credible deterrence,” Mr Raab said. “Nuclear security is incredibly important, not least given the proliferation of hostile state activity and the diverse nature of the threats that we face.”

Results

Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)

Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)

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

Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
ABU DHABI TRIATHLON

For more information, and to enter the race, please visit www.abudhabi.triathlon.org.

8 UAE companies helping families reduce their carbon footprint

Greenheart Organic Farms 

This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.

www.greenheartuae.com

Modibodi  

Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.

www.modibodi.ae

The Good Karma Co

From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes. 

www.instagram.com/thegoodkarmaco

Re:told

One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.

www.shopretold.com

Lush

Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store. 

www.mena.lush.com

Bubble Bro 

Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.

www.bubble-bro.com

Coethical 

This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.

www.instagram.com/coethical

Eggs & Soldiers

This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.

www.eggsnsoldiers.com

The specs

Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder

Power: 220 and 280 horsepower

Torque: 350 and 360Nm

Transmission: eight-speed automatic

Price: from Dh136,521 VAT and Dh166,464 VAT 

On sale: now

A Long Way Home by Peter Carey
Faber & Faber

North Pole stats

Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

BUNDESLIGA FIXTURES

Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)

Saturday RB Leipzig v Hertha Berlin (5.30pm)

Mainz v Borussia Monchengladbach (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

Union Berlin v SC Freiburg (5.30pm)

Borussia Dortmund v Schalke (5.30pm)

Sunday Wolfsburg v Arminia (6.30pm)

Werder Bremen v Hoffenheim (9pm)

Bayer Leverkusen v Augsburg (11.30pm)

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20petrol%20(V%20Class)%3B%20electric%20motor%20with%2060kW%20or%2090kW%20powerpack%20(EQV)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20233hp%20(V%20Class%2C%20best%20option)%3B%20204hp%20(EQV%2C%20best%20option)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20350Nm%20(V%20Class%2C%20best%20option)%3B%20TBA%20(EQV)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EMid-2024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3ETBA%0D%3C%2Fp%3E%0A
THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

MEDIEVIL%20(1998)
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20SCE%20Studio%20Cambridge%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%2C%20PlayStation%204%20and%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
New Zealand squad

Tim Southee (capt), Trent Boult (games 4 and 5), Colin de Grandhomme, Lockie Ferguson (games 1-3), Martin Guptill, Scott Kuggeleijn, Daryl Mitchell, Colin Munro, Jimmy Neesham, Mitchell Santner, Tim Seifert, Ish Sodhi, Ross Taylor, Blair Tickner

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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