The Labour Party said that its proposed industrial plans could lead to the creation of 80,000 jobs in the British automotive sector.
It was launched as Keir Starmer, the Labour leader whose party recently tasted victory in the local elections in England and Wales, prepares to make an address to the British Chambers of Commerce on Wednesday.
The party's proposal includes part-financing eight gigafactories, which they claim will not only help to create 80,000 jobs but the manufacture of nearly two million electric vehicles.
According to Labour, these plans will benefit regions such as the West Midlands with an influx of 28,000 jobs, and the north-west, where 11,000 could be created.
Mr Starmer has previously committed to achieving the highest sustained growth in the G7 if his party comes to power in the next general election.
In addition, the Labour Party has proposed to establish an industrial strategy council on a statutory footing, as part of its efforts to bolster British industries.
Labour's Shadow Business Secretary, Jonathan Reynolds, said that Labour plans to “make Brexit work” and implement a “modern industrial strategy”.
He professed optimism for the country's future under a Labour administration, saying: “Labour is ambitious for Britain’s future and our plans will bring investment and jobs to the industrial heartlands we are so rightly proud of.”
According to Mr Reynolds, “Britain is a fantastic place to work, grow or start a business, but firms need a government that will fight for them in an increasingly competitive global race.
“Labour will never be complacent about our industrial base. We have a plan to ensure the jobs of the future are here in Britain.”
The Labour Party's plans have met with criticism from Business and Trade Secretary Kemi Badenoch.
She said that the Conservative government has provided billions in support for the automotive sector and other industries.
“Our forthcoming plan for advanced manufacturing will further cement this government as one that backs the future of industry in this country,” she said.
Ms Badenoch also expressed scepticism about Labour's proposed strategy, contending that “the only plan the Labour Party has is one that will wreck the economy by sticking tens of billions of pounds on the government credit card and leave no money left, all over again.”
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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
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):
1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)
2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)
3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)
4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)
5. Nico Hulkenberg (GER/Renault) 1:29.480 (14)
