Manchester’s Gulf ties deepen as Gaza crisis tests UK foreign policy

Manchester’s Gulf transformation: how the UAE reshaped a British city

Manchester’s skyline has changed dramatically over the past decade, and much of that transformation is tied to money from the United Arab Emirates. Since 2011, Emirati-linked firms have increased their ownership of land in the city by 39%, according to an investigation by The Guardian. The shift began in the aftermath of the Arab Spring, when the UAE’s rulers sought to diversify their investments beyond the Middle East—and found willing partners in a city eager for regeneration.

The most visible symbol of this relationship is the Etihad Campus, home to Manchester City Football Club, which has been owned by Abu Dhabi’s royal family since 2008. But the influence extends far beyond football. Emirati investors now hold stakes in some of the city’s most deprived neighbourhoods, funding housing developments, retail spaces, and even public infrastructure projects. Andy Burnham, the city’s mayor, has defended the partnerships as essential for economic growth. “That’s the way the city works,” he told The Guardian. “We need investment, and if it comes with strings attached, we manage them.”

Yet the arrangement has not been without controversy. Critics argue that the UAE’s human rights record—including its treatment of migrant workers and its role in regional conflicts—should disqualify it from shaping British urban policy. Others point to the irony of a city that once prided itself on its radical, working-class roots now relying on Gulf petrodollars to fund its revival. The debate has taken on new urgency as Labour, which controls both Manchester’s local government and Westminster, faces pressure to reconcile its domestic regeneration agenda with its foreign policy principles.

Gaza’s forgotten crisis: why the UK election could make things worse

As Israel prepares for elections on Tuesday, the humanitarian catastrophe in Gaza has been largely absent from the campaign trail. Nearly 75,000 Palestinians have been killed since the war began, and nearly a million displaced people now face dire sanitary conditions, water shortages, and the constant threat of airstrikes. Yet the two leading candidates—Benjamin Netanyahu and Gadi Eisenkot—have both vowed to continue military operations until Hamas is destroyed, offering little hope for a ceasefire or meaningful aid deliveries.

The UK’s response has been muted. While the government has called for de-escalation, it has stopped short of condemning Israel’s military strategy or pushing for sanctions. Labour’s foreign secretary, David Lammy, has emphasised the need for a “balanced” approach, but critics say this amounts to complicity in Gaza’s suffering. “Gaza’s suffering has become campaign fodder,” a Palestinian aid worker told The Guardian. “No one in power seems to care about the people trapped there.”

The timing could not be worse. With the UK’s own budget negotiations underway, humanitarian aid for Gaza is unlikely to be a priority. Meanwhile, the UAE’s growing influence in British politics—exemplified by its investments in Manchester—raises questions about whether the UK can afford to alienate its Gulf allies by taking a stronger stance on Palestine. For now, the silence from Westminster speaks volumes.

Labour’s budget dilemma: how to fund housing without raising taxes

Chancellor John Healey is under pressure to find new revenue streams ahead of next week’s budget, but Labour has ruled out hiking income tax—a move that would break a key campaign promise. Instead, BBC Verify has identified four potential alternatives, each with its own political risks.

1. Capital gains tax reform: Currently set at 20% for higher-rate taxpayers, aligning it with income tax rates (40-45%) could raise billions. However, this would disproportionately affect small business owners and landlords, a key Labour constituency.
2. Wealth tax: A one-off levy on assets over £3 million could generate £10 billion, but the government has so far resisted calls for such a measure, fearing capital flight.
3. Closing corporate loopholes: Multinational tech firms and private equity groups have long exploited tax havens, and cracking down on these could yield significant revenue. But Labour has been cautious about alienating business leaders, particularly in the City of London.
4. Inheritance tax changes: Reducing exemptions or increasing rates could raise funds, but this would be deeply unpopular with middle-class voters.

The most immediate announcement is likely to be a £1 billion boost for social and affordable housing, bringing total funding for the government’s 10-year programme to over £40 billion. But with public services stretched and the cost of living still high, the chancellor’s options are limited—and every choice carries a political cost.

What this means for the UK

The convergence of these three stories—Manchester’s Gulf ties, Gaza’s humanitarian crisis, and Labour’s budget constraints—highlights the contradictions at the heart of UK foreign and domestic policy. On one hand, the government is eager to attract foreign investment to revive struggling regions, even if it means partnering with regimes with questionable human rights records. On the other, it faces growing pressure to take a moral stance on global conflicts, particularly when British allies are involved.

For Labour, the challenge is twofold. Domestically, it must deliver on its promises of economic renewal without alienating its traditional voter base or spooking business leaders. Internationally, it must navigate a geopolitical landscape where alliances are shifting and public opinion is increasingly polarised. The UAE’s investments in Manchester may have brought jobs and infrastructure, but they have also exposed the limits of ethical foreign policy in an era of economic uncertainty.

As for Gaza, the UK’s silence is deafening. With Israel’s election looming and no end to the war in sight, the humanitarian crisis will only deepen. Whether the UK chooses to act—or remains a bystander—will define its role on the world stage for years to come.