British Foreign Secretary Liz Truss is to take over responsibility for the UK’s future relationship with the EU, Downing Street has said, after the resignation of Brexit minister Lord David Frost.
Mr Frost resigned with “immediate effect” on Saturday night, having earlier agreed with Prime Minister Boris Johnson that he would leave his job in January.
He said he was leaving because of “the current direction of travel” of the government, fears over “coercive” Covid measures and the wish for the UK to become a “lightly regulated, low-tax” economy.
Mr Frost’s departure was called a “watershed moment” in an extremely damaging week for Mr Johnson.
Downing Street said Ms Truss would take over ministerial responsibility for the UK-EU relationship, and would lead negotiations to resolve problems with the Northern Ireland Protocol.
She changed from being pro-Remain advocate to an avid Brexiteer after the referendum in 2016.
Ms Truss consistently polls as the most popular Cabinet minister with Tory members, and has been tipped as a future leadership contender.
Mr Frost on Monday defended his decision, saying he stepped down because he could not support the government’s “coercive policies on Covid”.
He said he and the prime minister had “never disagreed in any way" about Brexit policy.
“I left the government because, as I think is well-known, I couldn’t support certain policies, most recently on the Covid restrictions and Plan B,” he told Sky News.
“And if you’re a minister you have to support collective responsibility, you have to support decisions of the government and I couldn’t, so that’s why I had to leave.”
He insisted his decision was not because he disapproved of Mr Johnson’s leadership, saying the UK has a “great future” ahead of it under the prime minister “if we can get the policies right”.
Mr Frost said he had originally intended to leave the government in the new year but decided to bring forward the move in light of the government’s recent Plan B restrictions, which include vaccine passports for nightclubs. Unvaccinated patrons have to show a negative Covid test to gain entry to clubs.
Meanwhile, Chris Heaton-Harris will move from the Department for Transport to become Europe minister and will stand in for Ms Truss when needed.
Aldridge-Brownhills MP Wendy Morton will move from being Europe and Americas Minister to replace Mr Heaton-Harris at the transport department.
Mr Frost’s shock resignation piled more pressure on the prime minister.
Tobias Ellwood, Tory MP from Bournemouth East and chairman of the House of Commons defence select committee, said many Conservative colleagues shared Mr Frost’s desire for “a consistency of where we want to go”.
“I think this is what perhaps unites more and more of the wider party," Mr Ellwood told Times Radio.
"And we’ve seen this since the Owen Paterson debacle that it needs to be clarity of our vision, there needs to be a consistency of where we want to go, people need to be included, the decision-making in No 10 needs to be improved.
Mr Paterson held the seat of North Shropshire for the Conservatives for 24 years until he was found to have breached lobbying rules over two companies paying him and resigned.
“We need an, almost like a wartime leader, we need a strong No 10, and the machinery of No 10 around Boris Johnson, that’s what needs to be improved," Mr Ellwood said.
“The booster-ism, the energy, is not enough in these current circumstances alone.”
Peter Bone, MP for Wellingborough, echoed Mr Paterson's views.
“Boris has led this country exceptionally well but what comes next? And that’s what I think Lord Frost is talking about," he told Sky News.
“I think part of that rebellion of 100 Conservative MPs was partly due to the fact that we want to see the Prime Minister move to a more conservative agenda in future.”
Mr Bone also said he agreed with Mr Frost’s concerns over the prospect of “coercive measures” to control the coronavirus.
“I’ve cancelled all in-person meetings and the get-together with staff, I cancelled," he said.
“I won’t be going to crowded places but leave that up to the individual to make that decision, don’t have the state telling me what I have to do every day, and so in that regard, yes, I’m with Lord Frost on that.”
Meanwhile, chairman of the Northern Ireland affairs committee, Simon Hoare, said the issues flagged by Mr Frost were the same that had been raised by “at least one potential leadership candidate”.
“I do just wonder whether he’s acting as a bit of an outrider for them, I’m just not sure,” Mr Hoare told BBC Radio 4.
Health Secretary Sajid Javid defended the prime minister. “I think Boris Johnson is the best person to take us through the challenges the country faces,” he told Sky News.
He said he also understood why Mr Frost had resigned and called him a “principled” man.
Mr Ellwood said Mr Frost's resignation was an opportunity to “press the reset button with the EU”.
“We’re still not out of the woods with the Northern Ireland Protocol and we have some rather larger decisions and challenges, which actually unite both the EU, Europe and Britain,” he said.
“As much as I think this is going to be seen as a hit for the government – he was a critical character that’s been with Boris Johnson from the very start when it comes to Brexit – this is a chance for us actually to sort of move forward on our relationship with the EU."
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
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
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MATCH INFO
Liverpool 2 (Van Dijk 18', 24')
Brighton 1 (Dunk 79')
Red card: Alisson (Liverpool)
RESULT
RS Leipzig 3
Marcel Sabitzer 10', 21'
Emil Forsberg 87'
Tottenham 0
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
England v South Africa schedule:
- First Test: At Lord's, England won by 219 runs
- Second Test: July 14-18, Trent Bridge, Nottingham, 2pm
- Third Test: The Oval, London, July 27-31, 2pm
- Fourth Test: Old Trafford, Manchester, August 4-8
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
MATCH INFO
Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')
Celta Vigo 1 (Olaza 42')
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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German plea
Ukrainian President Volodymyr Zelenskyy told the German parliament that. Russia had erected a new wall across Europe.
"It's not a Berlin Wall -- it is a Wall in central Europe between freedom and bondage and this Wall is growing bigger with every bomb" dropped on Ukraine, Zelenskyy told MPs.
Mr Zelenskyy was applauded by MPs in the Bundestag as he addressed Chancellor Olaf Scholz directly.
"Dear Mr Scholz, tear down this Wall," he said, evoking US President Ronald Reagan's 1987 appeal to Soviet leader Mikhail Gorbachev at Berlin's Brandenburg Gate.
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What is safeguarding?
“Safeguarding, not just in sport, but in all walks of life, is making sure that policies are put in place that make sure your child is safe; when they attend a football club, a tennis club, that there are welfare officers at clubs who are qualified to a standard to make sure your child is safe in that environment,” Derek Bell explains.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
UAE SQUAD
Goalkeepers: Ali Khaseif, Fahad Al Dhanhani, Mohammed Al Shamsi, Adel Al Hosani
Defenders: Bandar Al Ahbabi, Shaheen Abdulrahman, Walid Abbas, Mahmoud Khamis, Mohammed Barghash, Khalifa Al Hammadi, Hassan Al Mahrami, Yousef Jaber, Mohammed Al Attas
Midfielders: Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Majed Hassan, Abdullah Hamad, Khalfan Mubarak, Khalil Al Hammadi, Tahnoun Al Zaabi, Harib Abdallah, Mohammed Jumah
Forwards: Fabio De Lima, Caio Canedo, Ali Saleh, Ali Mabkhout, Sebastian Tagliabue
COMPANY%20PROFILE%20
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Global state-owned investor ranking by size
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Canada
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.