Liz Truss has promised to increase Britain's military spending if she is elected prime minister, staking out a firmer position than her rival Penny Mordaunt as they battle for a place in the final Tory leadership vote.
Ms Truss, the foreign secretary, said defence spending would rise to 3 per cent of GDP by 2030, from 2.1 per cent currently, to face down an “increased threat” from countries such as Russia and China.
Her promise came hours before the penultimate round of voting by Conservative MPs, in a contest in which Ms Truss is running out of time to overhaul Ms Mordaunt — a naval reservist who has made much of her military links.
Ms Truss failed to make the gains that some had expected in a ballot late on Monday, remaining in third after votes for Brexiteer Suella Braverman were redistributed. But Ms Mordaunt's momentum stalled as her vote tally fell by one.
Only one of the two is likely to make the final round and face former chancellor Rishi Sunak in a vote of the Conservative Party's 200,000 members that will determine the next prime minister.
The fourth candidate still standing, former equalities minister Kemi Badenoch, said it was “all to play for” after she made more substantial gains but she still faces an uphill battle to qualify for the final round.
The next ballot on Tuesday will throw Tom Tugendhat's supporters into the mix — seen as more likely to break for Mr Sunak or Ms Mordaunt — after the backbench MP won only 31 votes and was eliminated from the contest.
Ms Mordaunt published a new campaign video after the vote celebrating her links with Portsmouth, a military city where she said she was inspired by watching British warships sail off to the Falklands War in 1982.
But setting out Ms Truss's defence pitch on Tuesday, her campaign said she would seek to make the British military “the most capable force in Europe” and “guarantee the nation's place as partner of choice to the United States”.
The Truss camp said she would update a strategic blueprint written last year, adding a “renewed focus” on Russia and China, and put money towards cutting-edge defence, cyber and space technology.
Allies of Ms Truss described her as the only candidate “who can be trusted to keep us safe”, citing her record at the Foreign Office where she has taken a relatively hard line on Russia over the war in Ukraine.
“We live in an increasingly dangerous world where the threat level is higher than a decade ago, and we need a stronger deterrent to face down those threats and ensure Britain leads on the global stage. Ultimately that requires more resources,” Ms Truss said.
“Britain and the free world face a defining moment. We need a prime minister capable of leading internationally, who can also drive the economic growth we need here at home.”
Ms Mordaunt, who was briefly defence secretary in 2019, said last week she would expect military spending to rise if she was prime minister but said she would not engage in “plucking figures out of the air” during the leadership contest.
“I have had a reservist career. I am absolutely committed to our armed forces and I know that it is the duty of any prime minister to make sure this nation is defended,” she told Sky News.
Several Nato members including Germany, Poland and Denmark have announced increases in defence spending since Russia invaded Ukraine. Allies have a target of spending at least 2 per cent of GDP on defence but not all achieve this.
Mr Tugendhat, a former soldier whose military record was one of the main themes of his campaign, has not yet revealed which of the remaining candidates he will support.
As they sought to win over his supporters, Ms Mordaunt said she had admired Mr Tugendhat for years while Ms Badenoch said he would be an asset to any future Tory government.
Mr Sunak meanwhile chose to focus on crime on Tuesday, making a series of promises including tougher sentences for criminals who fail to attend court and deny their victims “the chance to look their perpetrator in the eye”.
His campaign said he would focus on career criminals with increased GPS tagging and more reintegration efforts, as well as increasing the government's powers to overrule parole decisions for violent offenders.
Mohammed bin Zayed Majlis
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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
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World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday, February 8 v Kenya; Friday, February 9 v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final
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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