Finance industry leaders are looking for an uplift from UK Chancellor Rachel Reeves as she unveils a mini-budget on March 26 against the backdrop of a global trade war started by the US.
Chris Hayward, the policy director of the City of London, which is home to the financial services industry, advised Ms Reeves that with a focus on better investment conditions and relative UK stability the financial statement could be hailed as a success.
"The City of London is being seen as a safe haven for investment at the moment, and it's helped, of course, by having a stable government, the government that's got a large majority for four or five years," Mr Hayward told The National in the run-up to the Chancellor's signature spring statement. "The conditions to invest and the language of the government around it are actually an attraction."
The Labour government is less than a year old, and while proclaiming economic growth as a priority, it has been trapped with a flatlining economy and deteriorating public finances. To Mr Hayward, a necessary message of recovery would go a long way to stop the slide.
"We tend to always be a nation that spends a lot of time apologising or explaining why things can't happen. What we've got to do is take a much more proactively positive approach when we're talking about the opportunities," he said.
One initiative that Ms Reeves is expected to bring forward in a statement that is overtly pro-foreign investment is joining up with the City of London's expertise for a new approach to cultivating foreign investment in the UK.
"She's confirmed that the government is going to tackle foreign direct investment in a much more positive way," he said. "The Treasury is to develop a concierge service for inward investment so that investors have an investment hub."
The move would emulate the efforts of leading rivals for global funds, including Dubai, Ireland and Singapore, in demonstrating the UK is ready to work harder to secure and promote direct foreign investment. "I think we've allowed our competitors to get ahead of us in this area, we haven't made it easy to invest in the United Kingdom."
One of the new government's early ideas was that home-grown pension funds could be encouraged to invest much more in the domestic economy. So far, the efforts to forge consensus with the City fund managers has run up against investment rules and established codes governing investment decisions.
"I'd like to know a little bit more about where they're going to go with pension reforms," Mr Hayward said. "This is a challenging area and I think she needs to be clear about where the government's going to move on that front."
After a summer in which the new government paraded a £20 billion budget black hole as its legacy from the Conservatives, the Reeves budget in October was a belt-tightening exercise that foreshadowed grim winter economic statistics.
"It was a tax-increase budget that has given her a lot of challenges and put a lot of cost on business," Mr Hayward said. "She has made clear there will be no more tax increases and I hope very much she's going stay with that position. If you're trying to talk about economic growth on the one hand and then raise your taxes on the other, it's a bit of a contradiction in terms."
The UK could escape the worst of US President Donald Trump's planned April 2 reciprocal tariff regime with a bilateral trade agreement. For Mr Hayward, the UK's position in the global economy could benefit from the change in US policies.
"The US is a massive growth economy but bringing in these tariffs will be very inflationary for America," he said. "The City of London is in a bit of a sweet spot with appetite from global investors for coming to the City really, really strong."
The Chancellor is set to use announcements on more defence spending, including laser weapons for warships, in a £2.2 billion boost to the military build-up in the UK. Overall, Ms Reeves is expected to announce cuts to public spending as she trims to meet the UK's debt rules.
The government has already announced plans to cut £5 billion with lower support for disabled people and those declared unable to work. Some Labour MPs worry that the government is returning to austerity policies last seen after 2010.
Debt trap
One of the reasons for the tight finances is a jump in interest payments on the national debt, which is now 100 per cent of GDP. The yield on 10-year bonds – effectively the cost of government borrowing – has risen from 4 per cent a year ago to 4.7 per cent, with some blaming domestic factors as well as the global trend.
Forecasts that £105 billion – around 8 per cent of total spending – would be spent on debt interest payments this year, have now risen sharply. The £9.9 billion gap Ms Reeves had in reserve in October has now been eliminated.
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
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%3Cp%3EAriana%E2%80%99s%20Persian%20Kitchen%3Cbr%3EDinner%20by%20Heston%20Blumenthal%3Cbr%3EEstiatorio%20Milos%3Cbr%3EHouse%20of%20Desserts%3Cbr%3EJaleo%20by%20Jose%20Andres%3Cbr%3ELa%20Mar%3Cbr%3ELing%20Ling%3Cbr%3ELittle%20Venice%20Cake%20Company%3Cbr%3EMalibu%2090265%3Cbr%3ENobu%20by%20the%20Beach%3Cbr%3EResonance%20by%20Heston%20Blumenthal%3Cbr%3EThe%20Royal%20Tearoom%C2%A0%3C%2Fp%3E%0A
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Killing of Qassem Suleimani
8 UAE companies helping families reduce their carbon footprint
Greenheart Organic Farms
This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.
www.greenheartuae.com
Modibodi
Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.
www.modibodi.ae
The Good Karma Co
From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes.
www.instagram.com/thegoodkarmaco
Re:told
One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.
www.shopretold.com
Lush
Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store.
www.mena.lush.com
Bubble Bro
Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.
www.bubble-bro.com
Coethical
This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.
www.instagram.com/coethical
Eggs & Soldiers
This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.
www.eggsnsoldiers.com
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
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