Liz Truss's leadership campaign was given a boost on Wedneday as two surveys showed her far in the lead and she received the backing of Sajid Javid, who attacked Rishi Sunak’s more cautious plans for tax cuts.
A ConservativeHome website survey put the foreign secretary 32 per cent ahead of Mr Sunak after an earlier YouGov poll of party members showed Ms Truss had a 34-percentage point lead over her leadership rival.
Mr Javid, who resigned as health secretary minutes before Mr Sunak left the Cabinet and started the cascade that forced Boris Johnson to quit as Tory leader, has now thrown his support behind the frontrunner.
The failed leadership candidate warned that “tax cuts now are essential”, as Mr Sunak resists adopting Ms Truss’s more radical plan to get to rein in spiralling inflation first.
A former chancellor, Mr Javid also warned in an article for The Times that the nation was at risk of “sleepwalking into a big-state, high-tax, low-growth, social democratic model which risks us becoming a middle-income economy by the 2030s”.
“If we can renew our government with a bold agenda, the Conservatives can still beat Labour, the Lib Dems and the SNP at the next election – and the evidence suggests Liz is the best-placed candidate to do so,” he said.
Mr Javid launched a leadership run on a platform of swift tax cuts but quickly pulled out, struggling to win enough nominations from Tory MPs to go through to the first round of voting.
His support for Ms Truss came shortly before the latest hustings of Conservative members at an event in Cardiff on Wednesday evening.
The YouGov survey showed 60 per cent of the party members polled between July 29 and August 2 saying they intend to vote for the foreign secretary, with 26 per cent backing Mr Sunak.
The poll of 1,043 Conservative Party members indicates only 11 per cent do not know who they will vote for, while 2 per cent said they would not take part in the contest.
A further indication of her dominance came with a survey of 1,003 members by the ConservativeHome website, which had 58 per cent backing Ms Truss to Mr Sunak’s 26 per cent.
But Ms Truss insisted she was taking nothing for granted, as a delay in ballot papers being issued due to cyber-security concerns gave her rival a little more time to catch up.
She acknowledged that there is “still a long way to go” in the contest as she continues to face questions about abandoning a key policy pledge.
Her campaign has endured a rocky period as she dropped the £8.8 billion ($10.7bn) pledge to cut the public sector wage bill by paying workers in cheaper areas of the country less than in more expensive parts.
Ms Truss claimed it had been “misrepresented”.
But she refused to say why the policy was being abandoned entirely if the problem is merely one of presentation.
Critics of the plan had claimed it would go against the government’s "levelling-up" agenda by cutting wages in more deprived areas of the country, although Ms Truss insisted it was never meant to affect people’s current pay rates.
The information put out by her campaign said the potential £8.8bn saving from the policy depended on it being “adopted for all public-sector workers in the long term”.
“I wanted to make sure that our important frontline workers like doctors and teachers weren’t worried," Ms Truss said. "That’s why I cancelled the policy.
“I did it straight away. I was decisive and I was honest with the public about what I was doing.”
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
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Brief scores:
Manchester United 4
Young 13', Mata 28', Lukaku 42', Rashford 82'
Fulham 1
Kamara 67' (pen),
Red card: Anguissa (68')
Man of the match: Juan Mata (Man Utd)
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
UAE currency: the story behind the money in your pockets
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
SPEC%20SHEET
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Secret Nation: The Hidden Armenians of Turkey
Avedis Hadjian, (IB Tauris)