There was a time when political parties, going into an election, used to promise tax cuts, not increases, and then not deliver them.
The late John Smith has gone down in history as the British shadow chancellor, or finance minister, who wiped out the Labour Party’s comfortable lead in 1992 by threatening to increase the top rate of income tax from 40 per cent to 50 per cent and let John Major, then the Conservative leader, take power.
Labour’s Denis Healey’s promise to squeeze the rich “until the pips squeak” was followed by 10 years of leadership by the Conservative prime minister Margaret Thatcher who promised to cut taxes – and did.
Three weeks from the UK election on June 8, there is not a promise of a tax cut in sight – quite the opposite. Both major parties are almost competing to see which of them can be the least business friendly. The Labour leader today, Jeremy Corbyn, proposes to increase the rate of corporation tax, which the former Conservative chancellor George Osborne had cut to 18 per cent, to 26 per cent or even more.
He is also promising a “fat cat” tax on banks, businesses (and football clubs) who pay their executives more than £300,000 (Dh1.4 million) a year, and a levy of 5 per cent for anything over £500,000.
For the record, the bosses of Britain’s FTSE 100 companies are paid an average of £5.5m each a year.
Mr Corbyn also says he will bring another million “rich” middle-class people into the top rate of tax by cutting the starting figure for the 45 per cent top rate to £80,000 a year (from £150,000) and put the money raised into the National Health Service.
He can of course threaten – or promise – what he likes. He is running so far behind in the polls that the only question is how big the Conservative Tory landslide will be.
On the other hand, the current prime minister, Theresa May, is running so far ahead that she doesn’t much care what she promises either. On Monday, she astonished the business community by proposing the “greatest extension of rights and protections for employees by any Conservative government in history”.
Her manifesto, which will be published over the next few days, will commit to more rights for “gig economy” workers (those not on fixed hours), and promise employees up to a year off to care for a family member or in cases of child bereavement.
"The Conservative Party has always been the true party of those workers," she wrote in the Financial Times, causing old Thatcherites such as the former Tory chancellor Nigel Lawson to gasp in astonishment. There was a time when the Tories were the voice of business. Now, says Mrs May, they are "the unashamed voice of ordinary working people once again". Economic historians are still ploughing through the records to discover when the last time was: a professor at the University of London, Tim Bale, reckoned it might have been the second administration of Benjamin Disraeli in the 1870s.
Mr Lawson, who cut the top rate of tax from over 70 per cent under the Wilson and Callaghan governments to 40 per cent, welcomed Brexit as “the chance to finish the job that Margaret Thatcher started”. Mrs May doesn’t see it like that. She proposes to guarantee all the protections that workers currently enjoy under EU rules. The manifesto will also include a pledge that the minimum wage, which many businesses hate, will increase in line with inflation and require worker representation on company boards.
Senior company executives this week complained bitterly about her “business-bashing” attitude, including her implicit accusation that employers are to blame for what she calls the “injustice of racial pay disparities”. The manifesto is expected to include a pledge to broaden disclosure rules on the gender pay gap to include information on ethnicity – yet another pointless regulation.
No matter. Big business may not like her, but the markets do.
The FTSE 100 index hit a new all-time high this week, keeping pace with international markets that are shrugging off cyber-attacks, North Korean missile launches, scepticism over the US Trump government’s fiscal policy and an ominous slowdown in Chinese economic growth.
“The continued success of British business in dependent on a strong economy,” says Mrs May, “which the strong and stable leadership of a Conservative government can provide.”
It is also dependent on companies being allowed to incentivise their top managers, control their costs and enjoy more, not less, freedom from red tape and unnecessary regulations.
“Mayism” is proving very different to “Thatcherism”.
Ivan Fallon is a former business editor of The Sunday Times and the author of Black Horse Ride: The Inside Story of Lloyds and the Financial Crisis.
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Kibsons%20Cares
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Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Sonchiriya
Director: Abhishek Chaubey
Producer: RSVP Movies, Azure Entertainment
Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey
Rating: 3/5
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Dengue%20fever%20symptoms
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The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
UAE SQUAD
Khalid Essa (Al Ain), Ali Khaseif (Al Jazira), Adel Al Hosani (Sharjah), Mahmoud Khamis (Al Nasr), Yousef Jaber (Shabab Al Ahli Dubai), Khalifa Al Hammadi (Jazira), Salem Rashid (Jazira), Shaheen Abdelrahman (Sharjah), Faris Juma (Al Wahda), Mohammed Shaker (Al Ain), Mohammed Barghash (Wahda), Abdulaziz Haikal (Shabab Al Ahli), Ahmed Barman (Al Ain), Khamis Esmail (Wahda), Khaled Bawazir (Sharjah), Majed Surour (Sharjah), Abdullah Ramadan (Jazira), Mohammed Al Attas (Jazira), Fabio De Lima (Al Wasl), Bandar Al Ahbabi (Al Ain), Khalfan Mubarak (Jazira), Habib Fardan (Nasr), Khalil Ibrahim (Wahda), Ali Mabkhout (Jazira), Ali Saleh (Wasl), Caio (Al Ain), Sebastian Tagliabue (Nasr).
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia