London Mayor Sadiq Khan has vociferously defended his controversial scheme to charge people for using their cars after the policy was blamed for a by-election loss in Boris Johnson’s old seat.
After Labour leader Sir Keir Starmer urged Mr Khan to reflect on the upcoming expansion of the Ulez (ultra low emision zone) and blamed the divisive plan for the party’s inability to wrestle the Uxbridge and South Ruislip constituency from the Conservatives.
“Ulez was the reason we didn’t win there yesterday,” Mr Starmer said on Friday. He added that “we’ve all got to reflect on that, including the mayor”.
But Mr Khan put up robust resistance to any change to his expansion plan, scheduled for August 29, which will lead to drivers in London’s outer boroughs being hit with daily charges if their vehicles are classed as high-polluting.
He said while Labour’s failure to take Mr Johnson’s former constituency in west London was disappointing, the Ulez scheme is the best way to clean up the capital’s polluted air.
“I’m quite clear though: the policy to expand the ultra low emission zone is the right one,” he told Sky News. “It was a difficult decision to take. But just like nobody would accept drinking dirty water, why accept dirty air?”
Steve Tuckwell, the Tory candidate in the area, won on an anti-Ulez campaign.
His opponent, Labour’s Danny Beales, changed his stance on the policy midway through his campaign, later suggesting it was “not the right time” to expand Ulez in the middle of a cost-of-living crisis.
The Ulez expansion will mean that drivers in every London borough will have to pay £12.50 ($16.30) a day if their vehicle is classed as high-polluting. The fee would mean a motorist might have to fork out up to £4,560 a year to drive on the capital’s roads.
The changes to Ulez will affect up to 700,000 drivers, analysis indicates, and come into effect on August 29.
Four Conservative-led outer London councils and Surrey County Council have launched a legal challenge to thwart Mr Khan's plans at the High Court.
Christina Calderato, Transport for London's director of strategy and policy, told reporters last week that bosses at City Hall were preparing to roll out the changes while awaiting the outcome of the court's decision.
She said they have an “eye firmly on the prize of the air quality benefits”.
Susan Hall, the Conservative candidate in the London mayoral election, has pledged to “stop the Ulez expansion on day one” if she beats Mr Khan in the contest.
Labour’s deputy leader, Angela Rayner, said the party failed to flip the Uxbridge and South Ruislip seat red because it did not “listen to the voters” on their Ulez concerns.
Mr Khan, who is trying to secure a historic third term in City Hall in next year’s mayoral election, said he intends to “listen to Londoners” following the by-election.
He said he would continue listening to people on issues such as “air pollution, climate change or the support they need to make that transition” to avoid Ulez fees.
Mr Starmer called on Mr Khan to "reflect" on his vision for Ulez to be implemented across the capital.
Asked if by "reflect" he mean the scheme should be scrapped, the Labour leader said: “We’ve got to look at the result [of the by-election]. The mayor needs to reflect. And it’s too early to say what should happen next.”
The win in Uxbridge was the one bright spot for the Tories, who otherwise took a drubbing in the by-elections. The ruling party lost their 19,000-vote majority in the south-western English seat of Somerton and Frome, with the Liberal Democrats winning. In Selby and Ainsty in Yorkshire, the Tories saw their 20,000 majority wiped out by the Labour Party, which waon by 4,000 votes. Both seats
Political researchers said the result in the west London by-election, which the Tories won by 495 votes, may not be indicative of national voting trends because Ulez is such a strong issue for locals.
Prof Tony Travers of the London School of Economics’ department of government said: “It looks as if some number of around 10 percentage points of the vote didn’t swing because of Ulez.”
He said Labour will be thinking “long and hard” about the Ulez policy before next year’s general election, when they will try to win seats in other outer London boroughs.
The next nationwide poll is expected to be held next year.
“Politicians who underestimate the power of the car – and the use of cars and the freedom that cars bring and as a driver of votes – do so at their peril,” Prof Travers said.
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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.”