The rapid spread of the coronavirus is impacting people's Christmas plans for a second year running. AP
The rapid spread of the coronavirus is impacting people's Christmas plans for a second year running. AP
The rapid spread of the coronavirus is impacting people's Christmas plans for a second year running. AP
The rapid spread of the coronavirus is impacting people's Christmas plans for a second year running. AP

Omicron runs rampant as London declares 'major incident'


Tim Stickings
  • English
  • Arabic

UK Prime Minister Boris Johnson faced a political tug-of-war over potential new restrictions on Saturday as the rampant spread of the Omicron variant added to his political woes.

As London declared a "major incident" due to the spread of Omicron and at least seven people were confirmed to have died from the variant, the government released scientific papers suggesting hundreds of thousands of people are catching the strain every day.

Ministers were urged to consider tougher restrictions amid days of record-shattering infection numbers that put many people's Christmas plans in peril. Although millions of people have received booster vaccines, even a small proportion of severe cases could put health services under pressure.

There were 90,418 confirmed coronavirus cases on Saturday, short of Friday's peak but a stark jump from 54,073 a week earlier. There were 125 deaths, a slight decrease.

While Mr Johnson's government prepared for emergency talks with the leaders of Scotland, Wales and Northern Ireland, a series of leaks suggested the prime minister was presented with a set of “Plan C” contingency options such as a two-week ban on indoor socialising after Christmas.

But Mr Johnson is working from an increasingly perilous political position after weeks of scandals and divisions culminated in a humbling defeat for his Conservative Party at a parliamentary by-election.

Any formal restrictions would risk further undermining Mr Johnson’s authority among his own MPs, after almost 100 of them rebelled against the wider use of digital health certificates under the current Plan B measures.

“We need data on severity, hospitalisation rate and length of stay – not expected until after Christmas. No knee-jerk reactions, ministers,” said Conservative MP Mark Harper, a prominent sceptic of restrictions.

Mr Johnson is under further pressure over a string of allegations that government staff held Christmas parties last winter, at a time when social gatherings were largely banned.

The scandal took another twist on Friday when Simon Case, the civil servant investigating the claims, was forced to recuse himself after allegations that a Christmas event took place in his own office.

“It’s incredibly disappointing because we all know what was happening when these parties were going on. People couldn’t see their loved ones who were dying and were making incredible sacrifices,” said Angela Rayner, the deputy leader of the opposition Labour Party.

“Boris Johnson has set a tone for this government and has allowed this to happen under his watch,” she told Sky News.

Mr Johnson sought to offer a ray of hope by announcing that a record 936,000 people had been vaccinated in 24 hours, meaning half of UK adults have received a booster shot.

But there are fears soaring infection numbers could put the National Health Service under severe strain, even if most cases are mild.

London Mayor Sadiq Khan brought back the "major incident" designation for the first time since February, with Omicron believed to be dominant in the capital and hospital admissions on the rise.

"The Omicron variant has quickly become dominant with cases increasing rapidly and the number of patients in our hospitals with Covid-19 on the rise again," he said.

  • People cross a quiet Westminster Bridge in London. The UK recorded the highest number of confirmed new Covid-19 infections on Wednesday since the pandemic began. AP Photo
    People cross a quiet Westminster Bridge in London. The UK recorded the highest number of confirmed new Covid-19 infections on Wednesday since the pandemic began. AP Photo
  • A traveller on a London Underground train. England's chief medical officer said the situation is likely to get worse as the Omicron variant drives a new wave of illness during the Christmas holidays. AP Photo
    A traveller on a London Underground train. England's chief medical officer said the situation is likely to get worse as the Omicron variant drives a new wave of illness during the Christmas holidays. AP Photo
  • UK Prime Minister Boris Johnson at a news conference in Downing Street to update the nation on the Covid-19 booster vaccine programme. Reuters
    UK Prime Minister Boris Johnson at a news conference in Downing Street to update the nation on the Covid-19 booster vaccine programme. Reuters
  • The queue outside the vaccination centre at St Thomas' Hospital in London. AP Photo
    The queue outside the vaccination centre at St Thomas' Hospital in London. AP Photo
  • Chester resident Melanie Hughes receives her booster vaccine from soldiers of the Royal Electrical and Mechanical Engineers at the walk-in vaccine clinic at Chester Cathedral. Getty Images
    Chester resident Melanie Hughes receives her booster vaccine from soldiers of the Royal Electrical and Mechanical Engineers at the walk-in vaccine clinic at Chester Cathedral. Getty Images
  • Pedestrians pass an electronic billboard in central London promoting Britain's NHS Covid-19 vaccine booster programme. AFP
    Pedestrians pass an electronic billboard in central London promoting Britain's NHS Covid-19 vaccine booster programme. AFP
  • A woman passes a closed food outlet in Covent Garden, London, after a rapid rise in Covid-19 case numbers led to a surge in booking cancellations across the hospitality industry. PA
    A woman passes a closed food outlet in Covent Garden, London, after a rapid rise in Covid-19 case numbers led to a surge in booking cancellations across the hospitality industry. PA
  • People queue to receive vaccine and booster doses at Chester Cathedral. Reuters
    People queue to receive vaccine and booster doses at Chester Cathedral. Reuters
  • Fans wait to get their coronavirus passes checked outside the American Express Community Stadium in Brighton, before a Premier League football match. Reuters
    Fans wait to get their coronavirus passes checked outside the American Express Community Stadium in Brighton, before a Premier League football match. Reuters

The government's scientific advisers fear hospital admissions could rise to more than 3,000 a day, close to the levels seen last winter, according to the minutes of a meeting on Thursday.

They said new restrictions could not wait until the New Year if ministers wanted to be sure of easing pressure on hospitals.

“If the aim is to reduce the levels of infection in the population and prevent hospitalisations reaching these levels, more stringent measures would need to be implemented very soon," they said.

“Delaying until 2022 would greatly reduce the effectiveness of such interventions and make it less likely that these would prevent considerable pressure on health and care settings.”

In England, it is "almost certain that there are now hundreds of thousands of new Omicron infections per day," they said.

The chairman of the NHS Confederation, Lord Victor Adebowale, expressed support for so-called circuit-breaker restrictions.

“I would support the circuit-breaker. My members would support the circuit-breaker,” he told Times Radio. “I think the government has to be prepared to recall Parliament if further interventions are needed.”

While advisers have signalled that people should limit their social contacts, Mr Johnson has stopped short of ordering formal restrictions.

The Plan B measures, which came into force this week, provide for the greater use of face masks and health certificates in England.

The Financial Times reported that Mr Johnson was presented with a range of Plan C options ranging from “mild guidance to nudge people, right through to lockdown”.

It quoted allies of Mr Johnson who said he preferred the guidance route, but had to be realistic about the threat of Omicron.

A separate report in The Times said draft regulations were being prepared that would ban people from meeting indoors and limit restaurants to outdoor service for two weeks after Christmas.

A government spokesman said ministers would "continue to look closely at all the emerging data [and] keep our measures under review".

The leaders of the devolved administrations called for more support for businesses losing customers to the informal lockdown.

“We must advise people to cut social contacts to a minimum… but then compensate businesses for the impact of fewer customers and support venues to cancel events if necessary,” said Scotland’s First Minister Nicola Sturgeon.

Company%20Profile
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The specS: 2018 Toyota Camry

Price: base / as tested: Dh91,000 / Dh114,000

Engine: 3.5-litre V6

Gearbox: Eight-speed automatic

Power: 298hp @ 6,600rpm

Torque: 356Nm @ 4,700rpm

Fuel economy, combined: 7.0L / 100km

<html><head><meta http-equiv="Content-Type" content="text/html" charset="UTF-8" /></head><body><!--PSTYLE=* Labels%3aFH Label 18 Sport--><p>Beach soccer</p><!--PSTYLE=BY Byline--><p>Amith Passela</p><p /></body></html>
Results

4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)

5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel

5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel

6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi

6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud

7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel

7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard

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

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.”

57%20Seconds
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Brief scores

Day 1

Toss England, chose to bat

England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46

The%20Specs
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Stree

Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5

Updated: December 19, 2021, 7:15 AM