• Jeremy Hunt is reappointed as Chancellor of the Exchequer. Getty Images
    Jeremy Hunt is reappointed as Chancellor of the Exchequer. Getty Images
  • Dominic Raab is Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice. PA
    Dominic Raab is Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice. PA
  • Simon Hart is Parliamentary Secretary to the Treasury (Chief Whip). AFP
    Simon Hart is Parliamentary Secretary to the Treasury (Chief Whip). AFP
  • James Cleverly is reappointed as Secretary of State for Foreign, Commonwealth and Development Affairs. Reuters
    James Cleverly is reappointed as Secretary of State for Foreign, Commonwealth and Development Affairs. Reuters
  • Ben Wallace is reappointed as Secretary of State for Defence. AP
    Ben Wallace is reappointed as Secretary of State for Defence. AP
  • Nadhim Zahawi becomes Minister without Portfolio. AP
    Nadhim Zahawi becomes Minister without Portfolio. AP
  • Oliver Dowden becomes Chancellor of the Duchy of Lancaster. Getty Images
    Oliver Dowden becomes Chancellor of the Duchy of Lancaster. Getty Images
  • Suella Braverman is Secretary of State for the Home Department. Reuters
    Suella Braverman is Secretary of State for the Home Department. Reuters
  • Grant Shapps becomes Secretary of State for Business, Energy and Industrial Strategy. Getty Images
    Grant Shapps becomes Secretary of State for Business, Energy and Industrial Strategy. Getty Images
  • Penny Mordaunt has been reappointed as Lord President of the Council, and Leader of the House of Commons. Reuters
    Penny Mordaunt has been reappointed as Lord President of the Council, and Leader of the House of Commons. Reuters
  • Gillian Keegan is Secretary of State for Education. PA
    Gillian Keegan is Secretary of State for Education. PA
  • Mel Stride, Secretary of State for Work and Pensions. EPA
    Mel Stride, Secretary of State for Work and Pensions. EPA
  • Therese Coffey, Secretary of State for Environment, Food and Rural Affairs. PA
    Therese Coffey, Secretary of State for Environment, Food and Rural Affairs. PA
  • Steve Barclay becomes Secretary of State for Health and Social Care. Getty Images
    Steve Barclay becomes Secretary of State for Health and Social Care. Getty Images
  • Michael Gove, Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations. Getty Images
    Michael Gove, Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations. Getty Images
  • Kemi Badenoch, reappointed as Secretary of State for International Trade and President of the Board of Trade. She also becomes Minister for Women and Equalities. Bloomberg
    Kemi Badenoch, reappointed as Secretary of State for International Trade and President of the Board of Trade. She also becomes Minister for Women and Equalities. Bloomberg
  • Michelle Donelan has been reappointed as Secretary of State for Digital, Culture, Media and Sport. EPA
    Michelle Donelan has been reappointed as Secretary of State for Digital, Culture, Media and Sport. EPA
  • Chris Heaton-Harris, reappointed as Secretary of State for Northern Ireland. PA
    Chris Heaton-Harris, reappointed as Secretary of State for Northern Ireland. PA
  • Alister Jack, reappointed as Secretary of State for Scotland. Reuters
    Alister Jack, reappointed as Secretary of State for Scotland. Reuters
  • David TC Davies, Secretary of State for Wales. AFP
    David TC Davies, Secretary of State for Wales. AFP
  • Lord True reappointed as Lord Privy Seal, and Leader of the House of Lords. Getty Images
    Lord True reappointed as Lord Privy Seal, and Leader of the House of Lords. Getty Images
  • Victoria Prentis, Attorney General. Getty Images
    Victoria Prentis, Attorney General. Getty Images
  • Jeremy Quin is Paymaster General and Minister for the Cabinet Office. Getty Images
    Jeremy Quin is Paymaster General and Minister for the Cabinet Office. Getty Images
  • Mark Harper, Secretary of State for Transport. PA
    Mark Harper, Secretary of State for Transport. PA
  • John Glen, Chief Secretary to the Treasury. PA
    John Glen, Chief Secretary to the Treasury. PA
  • Johnny Mercer, Minister for Veterans’ Affairs. PA
    Johnny Mercer, Minister for Veterans’ Affairs. PA
  • Tom Tugendhat, reappointed as Minister for Security. PA
    Tom Tugendhat, reappointed as Minister for Security. PA
  • Gavin Williamson, Minister without Portfolio. PA
    Gavin Williamson, Minister without Portfolio. PA
  • Robert Jenrick, Minister for Immigration. Getty Images
    Robert Jenrick, Minister for Immigration. Getty Images
  • Andrew Mitchell is Minister for Development. PA
    Andrew Mitchell is Minister for Development. PA

Rishi Sunak forms a 'comeback Cabinet' as old faces return to Downing Street


Tim Stickings
  • English
  • Arabic

Familiar faces returned to Downing Street on Tuesday as Britain's new Prime Minister Rishi Sunak set about assembling his new Cabinet.

On his first day in office, Mr Sunak restored some of Boris Johnson's Cabinet and kept much of Liz Truss's team in place after promising to unite the warring Conservative Party.

He used his first speech in Downing Street to promise integrity and economic stability after the turbulence of the past few months.

Jeremy Hunt is staying on as chancellor in the new government, while Truss lieutenant James Cleverly was reappointed foreign secretary.

Dominic Raab, a prominent Sunak backer, was restored to the posts of deputy prime minister and justice secretary that he previously held under Mr Johnson.

Suella Braverman returned as home secretary only six days after she was sacked for a security breach, retaking her post from Grant Shapps, who was made business secretary.

  • Britain's new Prime Minister Rishi Sunak delivers a speech outside Number 10 Downing Street. Reuters
    Britain's new Prime Minister Rishi Sunak delivers a speech outside Number 10 Downing Street. Reuters
  • King Charles III invites Mr Sunak to become prime minister and form a new government in an audience at Buckingham Palace. PA
    King Charles III invites Mr Sunak to become prime minister and form a new government in an audience at Buckingham Palace. PA
  • Mr Sunak promised to bring stability amid what he called a “profound economic crisis”. PA
    Mr Sunak promised to bring stability amid what he called a “profound economic crisis”. PA
  • The new prime minister is applauded as he enters Number 10. Photo: Simon Walker/ No 10 Downing Street
    The new prime minister is applauded as he enters Number 10. Photo: Simon Walker/ No 10 Downing Street
  • Mr Sunak is greeted by Cabinet Secretary and Head of the Civil Service Simon Case as he enters 10 Downing Street. AFP
    Mr Sunak is greeted by Cabinet Secretary and Head of the Civil Service Simon Case as he enters 10 Downing Street. AFP
  • A worker loads a removal van with boxes outside 10 Downing Street. Reuters
    A worker loads a removal van with boxes outside 10 Downing Street. Reuters
  • Members of the public wait for the arrival of Mr Sunak near Downing Street. AP
    Members of the public wait for the arrival of Mr Sunak near Downing Street. AP
  • Staff in the Foreign and Commonwealth Office watch from the windows as Mr Sunak arrives in Downing Street. PA
    Staff in the Foreign and Commonwealth Office watch from the windows as Mr Sunak arrives in Downing Street. PA
  • An Indian artist in Mumbai creates a painting to congratulate Mr Sunak on becoming prime minister. EPA
    An Indian artist in Mumbai creates a painting to congratulate Mr Sunak on becoming prime minister. EPA
  • Mr Sunak arrives at Buckingham Palace. PA
    Mr Sunak arrives at Buckingham Palace. PA
  • Incoming prime minister Rishi Sunak arrives at the Conservative Party's headquarters with a wave. AFP
    Incoming prime minister Rishi Sunak arrives at the Conservative Party's headquarters with a wave. AFP
  • Rishi Sunak is greeted by colleagues upon his arrival. AFP
    Rishi Sunak is greeted by colleagues upon his arrival. AFP
  • Conservative MPs applaud as Rishi Sunak arrives. Reuters
    Conservative MPs applaud as Rishi Sunak arrives. Reuters
  • Rishi Sunak departs after making a statement inside the Conservative Party's headquarters. PA
    Rishi Sunak departs after making a statement inside the Conservative Party's headquarters. PA
  • Mr Sunak meets the 1922 Committee in Parliament after he was announced as the new leader of the Conservative Party when Penny Mordaunt dropped out. PA
    Mr Sunak meets the 1922 Committee in Parliament after he was announced as the new leader of the Conservative Party when Penny Mordaunt dropped out. PA
  • Sir Graham Brady, chairman of the 1922 Committee, announces Mr Sunak as the new leader of the Conservatives and therefore the prime minister. PA
    Sir Graham Brady, chairman of the 1922 Committee, announces Mr Sunak as the new leader of the Conservatives and therefore the prime minister. PA
  • Members of the media work outside No 10 Downing Street, the official residence of Britain's prime minister, in central London, as they await announcements. AFP
    Members of the media work outside No 10 Downing Street, the official residence of Britain's prime minister, in central London, as they await announcements. AFP
  • Mr Sunak leaves his campaign office in London. AP
    Mr Sunak leaves his campaign office in London. AP
  • A billboard of Liz Truss, the departing prime minister, in London. Bloomberg
    A billboard of Liz Truss, the departing prime minister, in London. Bloomberg
  • Members of the public look through the gates into Downing Street. Reuters
    Members of the public look through the gates into Downing Street. Reuters
  • Mr Sunak leaves his home in London on Monday morning. AFP
    Mr Sunak leaves his home in London on Monday morning. AFP
  • Leader of the House of Commons and Conservative leadership candidate Penny Mordaunt speaks to the media on Sunday. Ms Mordaunt pulled out of the race moments before the deadline for nominations. PA
    Leader of the House of Commons and Conservative leadership candidate Penny Mordaunt speaks to the media on Sunday. Ms Mordaunt pulled out of the race moments before the deadline for nominations. PA

Former minister Michael Gove also appeared on the brink of a comeback after he was summoned to Downing Street on Tuesday.

Ben Wallace stayed on as defence secretary under a third prime minister, while Nadhim Zahawi was made a minister without portfolio and party chairman.

Penny Mordaunt, a former leadership candidate who had been tipped for a promotion, was kept in place as leader of the House of Commons.

Among those leaving the government were former business secretary Jacob Rees-Mogg, a loyalist of Ms Truss and Mr Johnson, and former chief whip Wendy Morton.

Alok Sharma, the president of the Cop26 climate summit, was appointed Britain's negotiator for the coming Cop27 but was dropped from the Cabinet.

Ms Morton was replaced as chief whip by Simon Hart, one of several returnees from the Johnson administration.

James Cleverly was re-appointed Foreign Secretary in Rishi Sunak's new Cabinet. Reuters
James Cleverly was re-appointed Foreign Secretary in Rishi Sunak's new Cabinet. Reuters

Mr Sunak himself returns to government for the first time since he quit as chancellor in July, part of the mutiny that brought down Mr Johnson.

Several Johnson-era ministers with experience in running departments have been summoned back as Mr Sunak strives to heal wounds.

Former party chairman Oliver Dowden was made chancellor of the Duchy of Lancaster, a vaguely defined role that gives him a seat in the Cabinet.

The opposition was quick to notice the revolving door.

“People shifting seats around the Cabinet table is not a refresh, it’s a resurrection,” said Labour MP Gareth Snell.

Mr Sunak assembled his team after King Charles III formally appointed him prime minister at Buckingham Palace.

It was King Charles's first time overseeing the transfer of power after he succeeded his mother, Queen Elizabeth II, on the throne.

After arriving in Downing Street, Mr Sunak said “mistakes were made” during Ms Truss's short-lived tenure and said the work to fix them “begins immediately”.

“I will unite our country, not with words, but with action,” he said.

“I fully appreciate how hard things are. And I understand, too, that I have work to do to restore trust after all that has happened.

“All I can say is that I am not daunted. I know the high office I have accepted and I hope to live up to its demands.”

Mr Sunak is Britain's first Hindu prime minister, the first of Asian descent and, at age 42, the youngest in more than two centuries.

Rishi Sunak's childhood landmarks - in pictures

  • Rishi Sunak was born in Southampton on the south coast of England. Here he is pictured visiting his family's old business, Bassett Pharmacy, in Southampton, during his campaign to be leader of the Conservative Party in August. PA
    Rishi Sunak was born in Southampton on the south coast of England. Here he is pictured visiting his family's old business, Bassett Pharmacy, in Southampton, during his campaign to be leader of the Conservative Party in August. PA
  • The childhood home of Mr Sunak: 21, Spindlewood Close, in Southampton. Getty Images
    The childhood home of Mr Sunak: 21, Spindlewood Close, in Southampton. Getty Images
  • The former Oakmount Prep School where Rishi Sunak was a pupil before going on to Winchester College. The school closed in 1989. Getty Images
    The former Oakmount Prep School where Rishi Sunak was a pupil before going on to Winchester College. The school closed in 1989. Getty Images
  • The Vedic Society Hindu Temple in Southampton, which was established by Ramdas Sunak, Mr Sunak's grandfather. Getty Images
    The Vedic Society Hindu Temple in Southampton, which was established by Ramdas Sunak, Mr Sunak's grandfather. Getty Images
  • The Vedic Society Hindu Temple prepares to celebrate the Hindu New Year. Mr Sunak's family were regulars at the temple during his childhood. Getty Images
    The Vedic Society Hindu Temple prepares to celebrate the Hindu New Year. Mr Sunak's family were regulars at the temple during his childhood. Getty Images
  • The Raymond Road Doctors Surgery where Yashvir Sunak, Rishi Sunak's father, practiced medicine in Southampton. Getty Images
    The Raymond Road Doctors Surgery where Yashvir Sunak, Rishi Sunak's father, practiced medicine in Southampton. Getty Images
  • The former site of Kuti's Brasserie in Oxford Road Southampton, where Mr Sunak worked shifts in the 1990s. Getty Images
    The former site of Kuti's Brasserie in Oxford Road Southampton, where Mr Sunak worked shifts in the 1990s. Getty Images
  • Southampton Football Club's St Mary's Stadium. Mr Sunak claims to be a big fan of his home-town team. Getty Images
    Southampton Football Club's St Mary's Stadium. Mr Sunak claims to be a big fan of his home-town team. Getty Images

He won the Conservative leadership on Monday after Mr Johnson called off a comeback bid and Ms Mordaunt pulled out.

As Britain's third leader in two months, he faces an array of challenges including economic strife, high inflation, the war in Ukraine and a fractured ruling party.

The pound climbed on currency markets as traders welcomed Mr Sunak's appointment.

He used his opening speech to draw a line under Mr Johnson's time in office by saying the mandate he won at the general election was “not the sole property of any one individual”.

Ms Truss earlier gave a farewell speech in Downing Street in which she defended the push for growth that brought about her downfall.

Her authority evaporated after her package of more than £40 billion ($46bn) in tax cuts caused turmoil in financial markets that nearly wiped out British pension funds.

But she said: “We simply cannot afford to be a low-growth country where the government takes up an increasing share of our national wealth.”

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

TOURNAMENT INFO

Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia

UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri

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

Updated: October 26, 2022, 2:29 PM