Prime Minister Rishi Sunak visits Jaguar Land Rover as the company announces it plans to build a new electric car battery gigafactory plant in Somerset. Photo: No 10 Downing Street
Prime Minister Rishi Sunak visits Jaguar Land Rover as the company announces it plans to build a new electric car battery gigafactory plant in Somerset. Photo: No 10 Downing Street
Prime Minister Rishi Sunak visits Jaguar Land Rover as the company announces it plans to build a new electric car battery gigafactory plant in Somerset. Photo: No 10 Downing Street
Prime Minister Rishi Sunak visits Jaguar Land Rover as the company announces it plans to build a new electric car battery gigafactory plant in Somerset. Photo: No 10 Downing Street

Rishi Sunak insists UK can hit net zero targets despite softening rules


Gillian Duncan
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Rishi Sunak has insisted Britain will hit its green targets, despite his pushback on the UK’s net-zero carbon pledges.

On Thursday, the Prime Minister said the UK had “consistently over-delivered in all our previous carbon budget” and the plans he had set out represent a road map that will have “broad consent”.

He reiterated he is “absolutely not slowing down” efforts to combat climate change.

Meanwhile, Energy Minister Graham Stuart announced at the UN Climate Ambitions Summit in New York that the government would provide £160 million towards developing nations’ net-zero efforts.

The Department for Energy Security and Net Zero said the money would assist developing nations to speed up the creation and deployment of new green technologies designed to reduce emissions and drive down costs.

Back in the UK, Mr Sunak carried out a series of media appearances following a speech on Wednesday in which he announced a rewrite of a host of pledges designed to help the country achieve a net-zero carbon emission economy by 2050.

Mr Sunak repeated his denial that his move was about playing politics, despite being widely interpreted as an attempt to draw a clear dividing line between his Conservative Party and Labour ahead of a likely general election next year.

The policy overhaul included pushing back the ban on new petrol and diesel cars by five years to 2035.

He watered down the plan to phase out gas boilers by 2035, creating an exemption for a fifth of households to potentially never make the change to alternatives such as heat pumps.

Mr Sunak also shrugged off suggestions he is not listening to the Climate Change Committee, an independent, statutory body which advises the UK on emissions targets, saying “we are on track to hit all our targets”.

He said: “For those who disagree with me … the questions for them, they should explain to the country why they think it's right that ordinary families up and down the country should have to fork out five, ten, £15,000 to make the transition earlier than is necessary.”

He dismissed a backlash from the car industry, after Ford warned that delaying the ban on new petrol and diesel vehicles would “undermine” its needs for “ambition, commitment, and consistency” from the Government.

He said: “They made those comments before I’d actually stood up and made a speech based on speculation and since then what you’ve had are multiple other car manufacturers, including Toyota last night, welcome what I said.”

He added: “What it does is provide certainty that we're going to get to net zero in a sensible way, the worst thing for businesses, as you can see in other countries around the world, if you go too far too fast and crucially you don't bring the public with you, and then being forced to change down the track, that's no good for business.”

On fears that people will now be less likely to buy new cars and that manufacturers will thus not have incentive to invest, the Prime Minister said the UK's target of 2035 “is completely aligned with pretty much every other major economy”.

A man plugs in a Vauxhall electric car at a Pod Point electric vehicle rapid charging station in Wallasey. Reuters
A man plugs in a Vauxhall electric car at a Pod Point electric vehicle rapid charging station in Wallasey. Reuters

“So in an industry that is global and integrated it's very hard to argue that somehow we'll be at a disadvantage when we're aligning our date with that of pretty much every other major country,” he added.

Mike Hawes, The Society of Motor Manufacturers & Traders (SMMT) Chief Executive, told The National electric vehicle sales remain “the single most important mechanism to deliver the UK’s Net Zero commitment”.

He added: “While the UK’s end of sale date for new conventional petrol and diesel vehicles has now been pushed back, regulation compelling the sale of EVs is still expected to be published imminently and to take effect in just over 100 days.

“This remains the single most important mechanism to deliver the UK’s Net Zero commitment.

“However, while manufacturers have invested billions to bring a growing choice of models to market, now more than ever consumers must be encouraged to make the switch. This will require a package of incentives for private buyers that complements those on offer to businesses, as well as measures to accelerate the rollout of charge points.”

But vehicle finance expert Graham Hill told The National the changes mean the UK will no longer be at the forefront of the electric car technological rollout.

“We may be the second largest auto market in Europe but in 2019 we sold 2.3 million cars in the UK compared to 13.5 left-hand drive cars in Europe,” he said.

“Instead of leading the way we'll simply become an afterthought. A modified Euro-Car market.”

'More ideological zeal'

Mr Sunak has said people with “more ideological zeal” about climate change “just don’t care about the impact on families”.

Asked what measures would be introduced to help the Government reach its net zero target, he told reporters on a visit to a college in Essex: “Lots of people have lots of different views on this. We’ve been through the numbers, we’re confident that we are on track to deliver all our targets.

“As I said yesterday … it gets polarised between extremes. There are people who just want to deny climate change is happening – they’re wrong – and on the other side there are people who approach this with more ideological zeal where they just don’t care about the impact on families.”

The change in approach has been met with scepticism among industry.

Stephanie Pfeifer, of The Institutional Investors Group on Climate Change (IIGCC) said the transition of the UK economy to net zero represents a “significant economic opportunity”.

But she said the UK’s long-term legally binding net zero commitments are not enough to provide investors with confidence if they are not supported by “credible short- and medium-term policies” to deliver on them.

“The government’s mixed signals on issues like electric vehicles and gas boilers create uncertainty that makes it harder for investors to factor climate considerations into their long-term investment decisions,” he said.

Many businesses also agree.

Sam Kirk, the managing director of J-Flex Rubber Products based in Retford, England told The National the sector has been “crying out for certainty and stability” following global events over the last few years, but yesterday's announcement was “yet more policy flip-flopping”.

“How are businesses meant to plan for anything meaningful if the goalposts are going to be shifted every year or so?” he said.

An expert in small businesses said some of them are making their own arrangements.

“They're not waiting for some arbitrary target more than two decades (or longer) away,” John Lamerton, the author of three bestselling business books including Big Ideas … for Small Businesses told The National.

“They're taking action now – from the school wall art company planting a tree for each ream of paper they use, to the food delivery company committing to a 100 per cent electric fleet and compostable materials.

“The accountant who refuses to fly to conferences, and the law firm building wells in Kenya. Small business owners understand: 'If it's to be, it's up to me.'”

SERIE A FIXTURES

Saturday

AC Milan v Sampdoria (2.30pm kick-off UAE)

Atalanta v Udinese (5pm)

Benevento v Parma (5pm)

Cagliari v Hellas Verona (5pm)

Genoa v Fiorentina (5pm)

Lazio v Spezia (5pm)

Napoli v Crotone (5pm)

Sassuolo v Roma (5pm)

Torino v Juventus (8pm)

Bologna v Inter Milan (10.45pm)

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 Old Slave and the Mastiff

Patrick Chamoiseau

Translated from the French and Creole by Linda Coverdale

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Terror attacks in Paris, November 13, 2015

- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France

Ticket prices

General admission Dh295 (under-three free)

Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free

Buy tickets at: wbworldabudhabi.com/en/tickets

ABU%20DHABI%20CARD
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Updated: September 22, 2023, 6:49 AM