Kemi Badenoch won 59 votes but came last in the fourth round of balloting. Getty
Kemi Badenoch won 59 votes but came last in the fourth round of balloting. Getty
Kemi Badenoch won 59 votes but came last in the fourth round of balloting. Getty
Kemi Badenoch won 59 votes but came last in the fourth round of balloting. Getty

Tory leadership race: Kemi Badenoch knocked out as Truss closes gap on Mordaunt


Tim Stickings
  • English
  • Arabic

Kemi Badenoch was knocked out of the race to become Britain's next prime minister on Tuesday, prompting a 24-hour scramble among the three remaining candidates to win over her supporters before the final round of balloting by Tory MPs.

The fourth round of voting saw former chancellor Rishi Sunak top the poll with 118 votes, all but guaranteeing that he will be one of the final two options presented to Conservative Party members.

The other spot in the run-off is still up for grabs between trade minister Penny Mordaunt, who won 92 votes, and Foreign Secretary Liz Truss, who closed the gap by taking 86.

Ms Badenoch, a former equalities minister on the right of the party, was eliminated after coming last with 59 votes but her allies can expect a day of heavy lobbying from the Truss and Mordaunt campaigns as they wrestle for second place.

The right flank of the party that favoured Ms Badenoch would seem a more natural fit for Ms Truss, but movements between rounds have been hard to predict and Wednesday’s vote remains wide open.

The rivals for second place immediately weighed in with glowing tributes to Ms Badenoch. Ms Mordaunt said she had “electrified the leadership contest with her fresh thinking and bold policies … she and I both know that the old way of government isn’t working as it should.”

A spokesperson for the Truss campaign said Ms Badenoch had "run a fantastic campaign and contributed enormously to the battle of ideas throughout this contest".

The fourth round was held after backbench MP Tom Tugendhat, a former soldier seen as a moderate in the race, was eliminated from the contest on Monday.

Although his supporters had been expected to lean towards Mr Sunak or Ms Mordaunt, it was Ms Truss who made the biggest progress — boosting her hopes of jumping into second in Wednesday's ballot.

A prominent Truss backer, backbench MP Dehenna Davison, said: “The momentum is firmly on Liz Truss's side.”

Once two candidates are left standing, postal ballots will be sent to the roughly 200,000 Conservative members and hustings held across the country before a winner is announced in September.

Sir Graham Brady, centre, announces the result of the fourth ballot of Conservative MPs. PA
Sir Graham Brady, centre, announces the result of the fourth ballot of Conservative MPs. PA

Ms Truss had made a play for Mr Tugendhat's votes on Tuesday by echoing his promise to spend 3 per cent of GDP on the military by 2030 in the face of growing hostility from Russia and China.

Cabinet minister Anne-Marie Trevelyan was one of the Tugendhat backers won over by Ms Truss, whom she described as bringing "strength to deal with the tough choices".

Ms Mordaunt has also talked up her military links as a naval reservist and short-lived defence secretary but has not committed to the 3 per cent threshold.

She instead focus on the economy on Tuesday, saying she would take on outgoing leader Boris Johnson's north-south equality agenda by improving apprenticeships, rail links and energy investments.

One of her supporters, former minister Andrea Leadsom, said testy exchanges between Ms Badenoch and Ms Mordaunt in TV debates did not mean that the loose votes could not fall for Ms Mordaunt in the final round.

"Leadership hustings are a brutal time... but the reality is Penny and Kemi have a strong relationship," she told Sky News. "And it's simply not true that all MPs vote as a bloc. Kemi doesn't command the bloc vote."

Mr Sunak meanwhile sought to position himself as a defender of the Union by highlighting billions of pounds he routed to Scotland when he was chancellor.

While candidates battle for Ms Badenoch's votes, another question is whether Mr Sunak's camp could try to influence the battle for second place by lending votes to a preferred opponent.

The Sunak campaign denied having used such tactics in earlier rounds. Prime Minister Boris Johnson was rumoured to have engaged in similar manoeuvres during the last leadership race in 2019.

At Downing Street, Mr Johnson chaired what was expected to be his final cabinet meeting and was presented with first-edition copies of Winston Churchill's books on the Second World War.

Mr Johnson ensured on Monday that he could stay in office until the end of the contest by winning a confidence vote in the House of Commons, defeating a Labour attempt to oust him sooner.

That led to another twist in the leadership race on Tuesday as backbench MP Tobias Ellwood, a Mordaunt supporter, was suspended from the Tory ranks for having failed to show up for the vote.

Mr Ellwood, a longstanding critic of Mr Johnson, blamed air travel chaos after saying he was unable to get home from a visit to Moldova.

  • 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
Company%20profile
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Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

How to increase your savings
  • Have a plan for your savings.
  • Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
  • Decide on a financial goal that is important to you and put your savings to work for you.
  • It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings. 

- Carol Glynn, founder of Conscious Finance Coaching

 

 

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

 

 

Monster

Directed by: Anthony Mandler

Starring: Kelvin Harrison Jr., John David Washington 

3/5

 

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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The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

Our Time Has Come
Alyssa Ayres, Oxford University Press

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Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Updated: July 20, 2022, 3:01 AM