Conservative Party members will choose between Liz Truss and Rishi Sunak as their new leader after Penny Mordaunt was on Wednesday knocked out of the race to become Britain's next prime minister.
The former chancellor Mr Sunak and the Foreign Secretary Ms Truss finished in the top two places after five rounds of voting by Tory MPs at Westminster in the race triggered after Boris Johnson was forced out of Downing Street by a wave of ministerial resignations this month.
The result of the final round of MP votes was announced in the House of Commons, Mr Sunak topping the poll with 137, followed by Liz Truss on 113. Ms Mordaunt won 105 votes. Only four more votes could have swung the race.
In the previous round, Ms Truss attracted a significant 15 new backers, taking her to 86 votes and only six behind the early favourite Ms Mordaunt, whose vote base increased by 10 to 92. That gave Ms Truss the momentum to overhaul her rival's lead. Eleven candidates originally put their names forward.
Polls show Ms Truss would beat Mr Sunak in the party members' contest, creating the possibility that the Conservatives elect a leader who is not the most popular choice among politicians.
Mr Sunak is a former Goldman Sachs banker who has raised the tax burden towards its highest level since the 1950s, while Ms Truss is a convert to Brexit who has pledged to cut taxes and regulation.
Mr Johnson defended his time in government during his last Prime Minister's Questions and outlined advice for his successor.
Mr Johnson declared “mission largely accomplished”, before signing off by telling MPs: “Hasta la vista, baby.”
Conservative Party ballots are expected to arrive in early August, from the 180,000 members who are eligible to choose the next leader. A series of events involving the rivals will be held to showcase the choice to the members.
Allies of the former chancellor dismissed accusations that Mr Sunak’s team had encouraged supporters to vote tactically to ensure a run-off with Ms Truss, and said they were “absolutely not true”.
“Everybody who wanted to see Rishi through voted for him, there was a significant rise in our vote compared with yesterday,” party sources said, adding that a “robust policy debate” would be held in the next six weeks.
The electorate of members will consist of more men than women, with almost half aged over 65, studies show. About 95 per cent of the members identify as white British, while the vast majority are so-called ABC1s — those who are better off and in higher-salaried jobs.
Tory members are twice as likely to live in the south of England compared to the population of Britain as a whole.
It could hurt Mr Sunak that his resignation set in train the final demise of Mr Johnson, who was cheered and clapped by members of his party as he walked out of the House of Commons chamber for the final time as leader of the Conservatives.
In a closing address, Mr Johnson offered advice to his successor, who he said should "stay close to America" and "stick up" for Ukraine and global democracy.
He also urged the next British leader to "cut taxes and deregulate wherever you can to make this the greatest place to live and invest".
In a statement after her elimination from the contest, Ms Mordaunt congratulated her rivals.
“I pay tribute to anyone who puts themselves forward for such a demanding role,” she said.
“Politics isn’t easy. It can be a divisive and difficult place. We must all now work together to unify our party and focus on the job that needs to be done.”
Mr Sunak’s campaign team said he had secured a “clear mandate” from Tory MPs. They said he will now “work night and day” to win the backing of the Conservative membership.
Ms Truss thanked her supporters in a tweet. “Thank you for putting your trust in me," she said. “I’m ready to hit the ground from day one.”
Conservative leadership candidates on the campaign trail - in pictures
'Cheb%20Khaled'
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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
The British in India: Three Centuries of Ambition and Experience
by David Gilmour
Allen Lane
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
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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
At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
TUESDAY'S ORDER OF PLAY
Centre Court
Starting at 2pm:
Elina Svitolina (UKR) [3] v Jennifer Brady (USA)
Anastasia Pavlyuchenkova (RUS) v Belinda Bencic (SUI [4]
Not before 7pm:
Sofia Kenin (USA) [5] v Elena Rybakina (KAZ)
Maria Sakkari (GRE) v Aryna Sabalenka (BLR) [7]
Court One
Starting at midday:
Karolina Muchova (CZE) v Katerina Siniakova (CZE)
Kristina Mladenovic (FRA) v Aliaksandra Sasnovich (BLR)
Veronika Kudermetova (RUS) v Dayana Yastermska (UKR)
Petra Martic (CRO) [8] v Su-Wei Hsieh (TPE)
Sorana Cirstea (ROU) v Anett Kontaveit (EST)
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
THE DETAILS
Deadpool 2
Dir: David Leitch
Starring: Ryan Reynolds, Josh Brolin, Justin Dennison, Zazie Beetz
Four stars