UK Prime Minister Boris Johnson appears as a guest on the BBC’s ’Andrew Marr Show’. He refused to rule out taxes rises during some heated exchanges. Photo: Reuters
UK Prime Minister Boris Johnson appears as a guest on the BBC’s ’Andrew Marr Show’. He refused to rule out taxes rises during some heated exchanges. Photo: Reuters
UK Prime Minister Boris Johnson appears as a guest on the BBC’s ’Andrew Marr Show’. He refused to rule out taxes rises during some heated exchanges. Photo: Reuters
UK Prime Minister Boris Johnson appears as a guest on the BBC’s ’Andrew Marr Show’. He refused to rule out taxes rises during some heated exchanges. Photo: Reuters

Boris Johnson refuses to rule out new tax rises


Thomas Harding
  • English
  • Arabic

Boris Johnson has refused to rule out further tax rises during a heated television interview.

The UK Prime Minister also conceded there would be no quick solution to Britain’s chronic labour shortages, which have led to a fuel crisis with difficult economic consequences.

On the BBC’s Andrew Marr Show, he said Britain’s lorry driver shortage could continue until Christmas.

Despite the ruling Conservatives traditionally being the party of low taxation, the government has been criticised for increasing National Insurance taxation to pay off some of the £407 billion ($551.29bn) in pandemic borrowing.

But it will be a concern to the party that Mr Johnson, 57, refused to rule out tax increases.

“You have no fiercer and more zealous opponent of unnecessary tax rises than me, but we have had to deal with a pandemic on a scale which this country has not seen before in our lifetimes,” the Prime Minister said. “If I can possibly avoid it, I do not want to raise taxes again.”

Boris Johnson joins Home Secretary Priti Patel for a baking session following his heated BBC interview in Manchester before the Conservative Party conference opens. AFP
Boris Johnson joins Home Secretary Priti Patel for a baking session following his heated BBC interview in Manchester before the Conservative Party conference opens. AFP

He said the former prime minister Margaret Thatcher would not have increased government borrowing any further despite being a stalwart of lower taxation. Some have advocated higher borrowing to avoid the National Insurance tax rise.

But, worryingly for Mr Johnson’s party, a new poll has shown that 34 per cent of people place more trust the main opposition party, Labour, to keep taxes low for “people like you”, compared with 31 per cent for the Tories.

Mr Johnson said Britain, which has a record one million vacancies, would have to go through a “period of adjustment” owing to Brexit, ended free movement of EU citizens within its borders.

It has one million vacancies, a record, owing to Britain’s exit from the EU

“What we can’t do is … simply go back to the tired, failed old model, reach for the lever called ‘uncontrolled immigration’, get people in at low wages,” he said.

Mr Johnson said salaries were going up at last “after more than 10 years of flatlining”.

He accepted that the government had known about the dearth of lorry drivers since June this year, but said even China had a driver shortage, as did many EU countries.

“We’ve known about shortages in road haulage long before then,” he said. “They’ve been a chronic feature of the way in which the road haulage industry has worked. What needs to happen now is people need to be decently paid and you need to have investment in their conditions.”

During one exchange, the Prime Minister was told only 10 days were left until 120,000 pigs would have to be slaughtered and incinerated owing to a lack of abattoir workers.

“The great hecatomb [mass sacrifice] of pigs that you describe has not yet taken place,” he said. “Let’s see what happens.”

It also has been a week of soul-searching among London’s police force following the jailing of former Metropolitan Police Constable Wayne Couzens for the kidnap, rape and murder of 33-year-old Sarah Everard. Mr Johnson did not commit to a public inquiry into the case but said rape prosecutions took too long and the conviction rate was too low.

“We will stop at nothing to make sure that we get more rapists behind bars and we have more successful prosecutions for rape and for sexual violence,” he said.

RACECARD
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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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%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Inas%20Halabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENijmeh%20Hamdan%2C%20Kamal%20Kayouf%2C%20Sheikh%20Najib%20Alou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The Vile

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Director: Majid Al Ansari

Rating: 4/5

The White Lotus: Season three

Creator: Mike White

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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Updated: October 03, 2021, 1:51 PM