Liz Truss posed on board a tank during a visit to Estonia last year. Photo: 10 Downing Street
Liz Truss posed on board a tank during a visit to Estonia last year. Photo: 10 Downing Street
Liz Truss posed on board a tank during a visit to Estonia last year. Photo: 10 Downing Street
Liz Truss posed on board a tank during a visit to Estonia last year. Photo: 10 Downing Street

Liz Truss vows UK defence boost in Tory leadership wrestle with Mordaunt


Tim Stickings
  • English
  • Arabic

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.

Mr Sunak won 115 votes in the third round, five short of the threshold that will guarantee entry to the final round. Ms Mordaunt took 82, Ms Truss 71 and Ms Badenoch 58.

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.

Tory backbencher Sir Graham Brady announces the results of the third leadership ballot on Monday. PA
Tory backbencher Sir Graham Brady announces the results of the third leadership ballot on Monday. PA

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.”

  • Conservative Party members will chose between Liz Truss and Rishi Sunak in the race to become Britain's next prime minister, after Penny Mordaunt was eliminated. PA
    Conservative Party members will chose between Liz Truss and Rishi Sunak in the race to become Britain's next prime minister, after Penny Mordaunt was eliminated. PA
  • Rishi Sunak — former chancellor who resigned from his position last week. In a slick campaign video he said the government could not afford to fool voters about the difficulties ahead with ‘comforting fairy tales’. Getty Images
    Rishi Sunak — former chancellor who resigned from his position last week. In a slick campaign video he said the government could not afford to fool voters about the difficulties ahead with ‘comforting fairy tales’. Getty Images
  • Liz Truss — the UK’s Foreign Secretary has pledged to start cutting taxes 'from day one' if she becomes prime minister, to tackle the cost-of-living crisis. She has also vowed to ‘take the vital steps necessary’ to protect the Good Friday Agreement. Getty Images
    Liz Truss — the UK’s Foreign Secretary has pledged to start cutting taxes 'from day one' if she becomes prime minister, to tackle the cost-of-living crisis. She has also vowed to ‘take the vital steps necessary’ to protect the Good Friday Agreement. Getty Images
  • OUT OF THE RACE: Penny Mordaunt — Brexit-backing Trade Minister has insisted the Conservative Party was elected to ‘deliver a manifesto’. She played a prominent role in the Leave campaign in the 2016 referendum. Reuters
    OUT OF THE RACE: Penny Mordaunt — Brexit-backing Trade Minister has insisted the Conservative Party was elected to ‘deliver a manifesto’. She played a prominent role in the Leave campaign in the 2016 referendum. Reuters
  • OUT OF THE RACE: Kemi Badenoch — former equalities minister has promised 'limited government' and 'a focus on the essentials'. She has said Boris Johnson was 'a symptom of the problems we face, not the cause of them'. Photo: UK Parliament
    OUT OF THE RACE: Kemi Badenoch — former equalities minister has promised 'limited government' and 'a focus on the essentials'. She has said Boris Johnson was 'a symptom of the problems we face, not the cause of them'. Photo: UK Parliament
  • OUT OF THE RACE: Tom Tugendhat —Foreign Affairs Committee chairman and ‘Remainer’ aims to reverse the national insurance rise. He says the presence of Brexit party and Leave figures on his team is reassuring for Brexiteers. Reuters
    OUT OF THE RACE: Tom Tugendhat —Foreign Affairs Committee chairman and ‘Remainer’ aims to reverse the national insurance rise. He says the presence of Brexit party and Leave figures on his team is reassuring for Brexiteers. Reuters
  • OUT OF THE RACE: Suella Braverman — current Attorney General has promised 'rapid and large tax cuts' to ease inflation. She has said the energy crisis means 'we must suspend the all-consuming desire to achieve net zero by 2050'. Reuters
    OUT OF THE RACE: Suella Braverman — current Attorney General has promised 'rapid and large tax cuts' to ease inflation. She has said the energy crisis means 'we must suspend the all-consuming desire to achieve net zero by 2050'. Reuters
  • OUT OF THE RACE: Nadhim Zahawi — newly appointed Chancellor has promised to cut taxes and push ahead with the reforms he started in his previous role as education secretary, to ‘deliver a great education for every child’. PA
    OUT OF THE RACE: Nadhim Zahawi — newly appointed Chancellor has promised to cut taxes and push ahead with the reforms he started in his previous role as education secretary, to ‘deliver a great education for every child’. PA
  • OUT OF THE RACE: Jeremy Hunt — runner-up to Boris Johnson in the 2019 leadership race, who has pledged to slash corporation tax to 15 per cent. He has also promised to back the Northern Ireland Protocol Bill. AFP
    OUT OF THE RACE: Jeremy Hunt — runner-up to Boris Johnson in the 2019 leadership race, who has pledged to slash corporation tax to 15 per cent. He has also promised to back the Northern Ireland Protocol Bill. AFP
  • OUT OF THE RACE: Rehman Chishti — newly appointed Foreign Office minister had spoken of the importance of lower taxes and having a small state with a big society. 'It’s about aspirational conservatism, it’s about fresh ideas and then it comes down to having a fresh team.' Getty Images
    OUT OF THE RACE: Rehman Chishti — newly appointed Foreign Office minister had spoken of the importance of lower taxes and having a small state with a big society. 'It’s about aspirational conservatism, it’s about fresh ideas and then it comes down to having a fresh team.' Getty Images
  • OUT OF THE RACE: Sajid Javid — experienced former health secretary had planned to scrap the government’s national insurance increase, bring forward the proposed 1p income tax cut to next year and introduce a further ‘significant’ temporary reduction on fuel duty. PA
    OUT OF THE RACE: Sajid Javid — experienced former health secretary had planned to scrap the government’s national insurance increase, bring forward the proposed 1p income tax cut to next year and introduce a further ‘significant’ temporary reduction on fuel duty. PA
  • OUT OF THE RACE: Grant Shapps — the Transport Secretary had said on TV: 'I am interested in the bread-and-butter issues that your viewers will be thinking about every single day of the week.' AP
    OUT OF THE RACE: Grant Shapps — the Transport Secretary had said on TV: 'I am interested in the bread-and-butter issues that your viewers will be thinking about every single day of the week.' AP

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.

COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

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

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.0%20twin-turbo%20inline%20six-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eeight-speed%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E503hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E600Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh450%2C000%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A

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 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

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 
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 specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Updated: July 19, 2022, 8:35 AM