A bad day at the polls for the Conservatives on Thursday could crank up the pressure on Prime Minister Boris Johnson. AFP
A bad day at the polls for the Conservatives on Thursday could crank up the pressure on Prime Minister Boris Johnson. AFP
A bad day at the polls for the Conservatives on Thursday could crank up the pressure on Prime Minister Boris Johnson. AFP
A bad day at the polls for the Conservatives on Thursday could crank up the pressure on Prime Minister Boris Johnson. AFP

Local elections 2022: Tories forecast to lose flagship Westminster and Wandsworth seats


Simon Rushton
  • English
  • Arabic

The Conservatives could lose traditionally loyal key councils and up to 550 councillors in local elections in the UK on Thursday, a poll has shown.

True blue Westminster and Wandsworth councils in London could be among the casualties as Labour gears up for its most successful night since the 1990s, Tony Blair and Cool Britannia.

The survey suggested Labour will hold 3,500 council seats — a gain of more than 800 — while the Tories will retain about 980, a fall of 548.

Although the elections are for local authorities, the national government under Prime Minister Boris Johnson has endured a series of ethics and standards scandals, including partygate, second jobs and pornography in Parliament.

Mr Johnson, interviewed on British television on Tuesday, argued that he was an honest politician.

If the vote mirrors the opinion poll, it could put more pressure on the prime minister to step down.

Anne-Marie Trevelyan, the International Trade Secretary, was asked about the 550 number and its relevance.

“I am not close to the precise detail but I would expect us to win some and lose some, that would be normal and expected, but what I think we will see is a really strong showing from Conservative voters who want to come out and demonstrate that they know that locally-run councils run by Conservatives are better,” she said.

The opinion poll found that Barnet in London, Southampton on the south coast and Newcastle-under-Lyme in the Midlands could all be lost by the Conservatives, while Labour could gain 16 councils.

The predicted vote share was 24 per cent for the Tories, 39 per cent for Labour and 15 per cent for the Liberal Democrats — figures not seen since Tony Blair was Labour leader.

The pollsters pointed out, however, that previous apparent Labour strength has not necessarily translated into votes.

In the fallout from the partygate controversy, where government ministers held drinks parties at work during Covid-19 lockdowns, Mr Johnson had to pay a fixed penalty notice for breaking the law.

Rising prices is a key election issue. AFP
Rising prices is a key election issue. AFP

He insisted on Tuesday he was an “honest” politician as he admitted to being “inadvertently” wrong in his comments to Parliament about the partygate row.

“Yes. I think the best way to judge that is to look at what this government says it's going to do and what it does,” he said.

The party has been criticised for its reaction to the Ukraine refugee crisis and the Rwanda plan to send Channel-hopping migrants to East Africa and imposing tax rises while inflation is soaring.

On Saturday, Neil Parish MP resigned his seat after admitting he had watched pornography while in the House of Commons.

Labour Party leader Sir Keir Starmer campaigns in Workington. Getty
Labour Party leader Sir Keir Starmer campaigns in Workington. Getty

Labour leader Sir Keir Starmer said his party has a “real wind in our sails” before the local elections on Thursday.

Asked what success would look like for Labour, he said: “We want to hold seats where we've already got them, and we want to make gains where we can.

“I'm conscious that we've got to earn every vote, I'm taking nothing for granted. What I can tell you is we've got thousands of fantastic activists across the country making the positive case for Labour. There's a real wind in our sails at the moment.”

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.”

Du Football Champions

The fourth season of du Football Champions was launched at Gitex on Wednesday alongside the Middle East’s first sports-tech scouting platform.“du Talents”, which enables aspiring footballers to upload their profiles and highlights reels and communicate directly with coaches, is designed to extend the reach of the programme, which has already attracted more than 21,500 players in its first three years.

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Russia's Muslim Heartlands

Dominic Rubin, Oxford

Two-step truce

The UN-brokered ceasefire deal for Hodeidah will be implemented in two stages, with the first to be completed before the New Year begins, according to the Arab Coalition supporting the Yemeni government.

By midnight on December 31, the Houthi rebels will have to withdraw from the ports of Hodeidah, Ras Issa and Al Saqef, coalition officials told The National. 

The second stage will be the complete withdrawal of all pro-government forces and rebels from Hodeidah city, to be completed by midnight on January 7.

The process is to be overseen by a Redeployment Co-ordination Committee (RCC) comprising UN monitors and representatives of the government and the rebels.

The agreement also calls the deployment of UN-supervised neutral forces in the city and the establishment of humanitarian corridors to ensure distribution of aid across the country.

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Updated: May 06, 2022, 8:23 AM