HM Passport Office is expecting to deal with another rush of applications in 2023
HM Passport Office is expecting to deal with another rush of applications in 2023
HM Passport Office is expecting to deal with another rush of applications in 2023
HM Passport Office is expecting to deal with another rush of applications in 2023

UK passport delays 'affect hundreds of thousands this year'


Soraya Ebrahimi
  • English
  • Arabic

Delays in processing passport applications affected hundreds of thousands of people, many of whom had travel plans disrupted, Whitehall’s spending watchdog has found.

A “record number” of applications were processed by HM Passport Office amid “unprecedented demand” as coronavirus pandemic travel restrictions were lifted.

But the department struggled to keep up with higher-than-average demand from customers, the National Audit Office said.

In the first nine months of this year, 95 per cent of customers received their passports within 10 weeks, but 360,000 people experienced longer waits.

The auditor urged the Home Office agency to learn lessons from the chaos and to “prepare for similar levels of demand” expected in 2023, when up to 10 million applications could be made.

Despite planning ahead, problems with recruitment and “limitations in its systems”, and unsuccessful efforts to deal with the level of demand all “contributed to longer than expected waits”, findings published on Friday.

During the pandemic, significantly fewer people applied for and renewed passports, and officials planned for an “expected surge” in applications when travel restrictions were lifted.

World’s most powerful passports - in pictures

  • Japan and Singapore have the world's most powerful passports in 2022, with their citizens able to visit 192 countries visa-free. Unsplash
    Japan and Singapore have the world's most powerful passports in 2022, with their citizens able to visit 192 countries visa-free. Unsplash
  • Germany and South Korea are in second place, giving their passport holders access to 190 destinations. Unsplash
    Germany and South Korea are in second place, giving their passport holders access to 190 destinations. Unsplash
  • Citizens from Finland, Italy, Luxembourg and Spain can visit 189 destinations without applying for a visa. Unsplash
    Citizens from Finland, Italy, Luxembourg and Spain can visit 189 destinations without applying for a visa. Unsplash
  • Austria, Denmark, France, Netherlands and Sweden share fourth place, with their citizens able to travel to 188 countries visa-free. Unsplash
    Austria, Denmark, France, Netherlands and Sweden share fourth place, with their citizens able to travel to 188 countries visa-free. Unsplash
  • Ireland and Portugal are a joint fifth, with their passport holders having access to 187 destinations. Unsplash
    Ireland and Portugal are a joint fifth, with their passport holders having access to 187 destinations. Unsplash

The office prepared for 9.5 million applications in 2022 — 36 per cent more than a normal year — based on the missing number of applications from the two years before.

Between January to September, more than seven million people applied and the passport office processed 6.9 million applications, an increase of 21 per cent compared with the same period in 2019.

In May alone, more than 1.2 million applications were received, 38 per cent more than the highest month in any of the previous five years. In the busiest week, 340,000 applications were submitted.

An estimated three million passport applications are still expected from people who did not renew or apply during the pandemic, which means the passport office could see another 9.8 million applications in 2023, the report said.

10 things to know about your passport before you travel - in pictures

  • Chris McGrath / Getty Images
    Chris McGrath / Getty Images
  • Visions of America / UIG via Getty Images
    Visions of America / UIG via Getty Images
  • Philip Cheung / The National
    Philip Cheung / The National
  • Getty Images
    Getty Images
  • Thomas Trutschel / Photothek via Getty Images
    Thomas Trutschel / Photothek via Getty Images
  • Randi Sokoloff / The National
    Randi Sokoloff / The National
  • Getty Images
    Getty Images
  • Getty Images
    Getty Images

“HM Passport Office processed a record number of applications amid unprecedented demand," said the head of the audit office, Gareth Davies.

“But limitations in its systems, coupled with difficulties in keeping up with higher-than-average numbers of customers contributed to delays for hundreds of thousands of people, creating anxiety for those with travel plans and hampering people’s ability to prove their identity.

“HMPO must now learn the lessons from this year and prepare for similar levels of demand that are expected in 2023.”

The department was already working to improve contact with customers and better deal with demand in future, the audit office said.

The world's most and least powerful passports in 2021 - video

“The impact of Covid-19 on passport services is not unique to the UK, with passport-issuing authorities across the world having reported challenges for their service," a Home Office spokesman said.

“We recognise that a small percentage of British passport customers did not receive the service that they should rightfully expect earlier this year.

"However, we have worked hard to rectify this, and have processed a record number of applications for a British passport in 2022, with over 95 per cent being completed within 10 weeks.”

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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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

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

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Planes grounded by coronavirus

British Airways: Cancels all direct flights to and from mainland China 

Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30

Chicago-based United Airlines: Reducing flights to Beijing, Shanghai, and Hong Kong

Ai Seoul:  Suspended all flights to China

Finnair: Suspending flights to Nanjing and Beijing Daxing until the end of March

Indonesia's Lion Air: Suspending all flights to China from February

South Korea's Asiana Airlines,  Jeju Air  and Jin Air: Suspend all flights

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Price, base / as tested Dh137,000 / Dh189,950

Engine 3.6-litre V6

Gearbox Eight-speed automatic

Power 280hp @ 6,200rpm

Torque 360Nm @ 2,750rpm

Fuel economy, combined 11.7L / 100km

NINE WINLESS GAMES

Arsenal 2-2 Crystal Palace (Oct 27, PL)

Liverpool 5-5 Arsenal  (Oct 30, EFL)

Arsenal 1-1 Wolves (Nov 02, PL)

Vitoria Guimaraes 1-1 Arsenal  (Nov 6, Europa)

Leicester 2-0 Arsenal (Nov 9, PL)

Arsenal 2-2 Southampton (Nov 23, PL)

Arsenal 1-2 Eintracht Frankfurt (Nov 28, Europa)

Norwich 2-2 Arsenal (Dec 01, PL)

Arsenal 1-2 Brighton (Dec 05, PL)

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Updated: December 09, 2022, 12:01 AM