London mayor Sadiq Khan's ultra low emission zone (Ulez) expansion is lawful, Britain's High Court has ruled.
A judge rejected five Conservative-led councils’ challenge against the expansion, due to take place on August 29.
The local authorities argued the Labour mayor had gone beyond his powers by extending the scheme to the capital’s outer boroughs.
Under the scheme, motorists of high-polluting cars have to pay £12.50 per day to drive within the zone.
The outer London boroughs of Bexley, Bromley, Harrow and Hillingdon along with Surrey County Council launched legal action in February over the proposals to extend Ulez beyond the North and South Circular roads.
At a hearing this month, the local authorities’ lawyers said Mr Khan lacked the legal power to order the expansion of the low-emission zone by varying existing regulations. They argued there was an “unfair and unlawful” approach to collecting views on the plans.
The mayor’s legal team rejected the bid to quash his plan, arguing the move was “entirely lawful” and that “ample information” was provided for a “fair consultation”.
In a ruling on Friday, Mr Justice Swift dismissed the councils’ case.
Mr Khan responded by welcoming the “good news”.
In a summary of his findings, Mr Justice Swift said the mayor was acting within his remit.
“I am satisfied that the mayor’s decision to expand the Ulez area by amendment of the present road-charging scheme, rather than by making an entirely new scheme, was within his powers,” he said.
Having “carefully considered” the consultation process, the judge said he was satisfied enough information had been given to people who wished to respond to provide “informed responses”.
The councils had also challenged plans for a £110 million ($141 million) scheme to provide grants supporting the scrapping of non Ulez-compliant vehicles, arguing they were unlawful because a “buffer zone” for “non-Londoners” affected by the extended charging zone was not considered.
Mr Justice Swift said the consultation on the scrappage scheme was “not in depth” but was legal.
Mr Khan said the decision to expand Ulez was “very difficult and not something I took lightly”.
The extension will bring cleaner air to five million more people living in the capital, he said.
“The unambiguous decision today in the High Court allows us to press on with the difficult but vital task of cleaning up London’s air and tacking the climate crisis,” he said in a statement released on Twitter.
Conservative London Assembly member Susan Hall, who is challenging Mr Khan in the mayoral election next year, repeated her pledge to scrap the extension of the scheme if elected.
"While it is a shame the High Court did not find the Ulez expansion to be unlawful, there is no denying that Sadiq Khan's plans will have a devastating impact on families and businesses across the city," she tweeted. "If I am elected mayor, I will stop the Ulez expansion on day one."
Sian Berry, a Green Party member of the London Assembly, said she was "really pleased" with the High Court decision.
She said while drivers in the capital needed more support from the mayor and the government to adjust to the changes, the expansion could not wait.
Ms Berry said "Londoners need this now" because "clean air will save lives".
Caroline Lucas, a Green MP and former party leader, said widening the borders of Ulez was an essential step because "London’s toxic smog is threatening lives".
Labour leader Keir Starmer blamed Ulez for the party’s defeat in the Uxbridge and South Ruislip by-election last week, in which the Tories held on to Boris Johnson’s former seat.
Lord Moylan, a Conservative peer in the House of Lords and a former deputy chairman of Transport for London, said Mr Khan was ignoring the wishes of high-level figures in the Labour Party to plough ahead with the expansion.
Lord Moylan told GB News: “Top Labour politicians are basically hinting that he should cancel this. But what has he done? He has written to the government for more money, which is all he has ever done.”
If the mayor ignores critics, including those in his own party, and moves ahead with his plan, the Ulez borders will reach Buckinghamshire, Essex, Hertfordshire, Kent and Surrey at the end of next month.
Tim Oliver, leader of Surrey County Council, called the High Court ruling "incredibly disappointing".
Paul Osborn, leader of Harrow Council, said he would press the government for power to stop the Ulez expansion in his area.
Colin Smith, leader of Bromley Council, said the High Court ruling was a “bitter disappointment” for motorists, traders who would have to “consider ceasing business and laying off staff” and people who would not be able “to support vital care networks” in outer London.
'Rishi Sunak must help Londoners with Ulez costs'
Greenpeace UK’s policy director Doug Parr said given that the globe was in the midst of a climate crisis “now is not the time for political point-scoring”.
He claimed Ulez had been a “huge success” in its four years to date and that it could be credited for “almost halving harmful air pollution in central London”.
Mr Parr accused the government of slacking off on climate action and called on Rishi Sunak to “step up” to help Londoners faced with Ulez costs.
"Those who feel that the Ulez expansion is unfair should point the finger squarely at the government,” he said. “Ministers rightly demand that legal limits for air pollution are met but have failed to adequately fund the car scrappage scheme.
“A government committed to solving the problems of air pollution in the capital should work with the mayor to provide proper financial support for working people wanting to get rid of older, more polluting vehicles.
“The Prime Minister should step up to ensure that working families are supported and costs fall on those with the broadest shoulders.”
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
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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.”
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
