Sunak, 42, will become the country’s youngest leader in modern times – and it’s third in less than two months – when he takes office during one of the most chaotic periods in British political history. He succeeds Liz Truss, who served only 44 days before announcing her resignation, citing the need to restore stability to a country reeling from years of political and economic instability and leading a party that has splintered along ideological lines.
Following Several Months of Upheaval, the United Kingdom Has Finally Chosen Rishi Sunak as Its New Prime Minister
Rishi Sunak will become Britain’s first prime minister of color on Tuesday after winning the Conservative Party leadership election. He will be charged with guiding a bitterly divided country through an economic downturn that would leave millions of people impoverished.
On Monday, he told his MPs in parliament that they were in an “existential crisis” and that they needed to “unite or die.” He warned the country that it was facing a “significant economic problem.” Sunak will do his best for Britain, according to his rich father-in-law.
Sunak as Prime Minister must try to maintain the UK competitive globally – HSBC CEO. The UK Financial Conduct Authority has proposed guidelines to combat ‘greenwashing.’ Political unrest pushes British enterprises into a downward spiral – PMIs. “We now require stability and unity, and I will make it my top priority to unite our party and our country,” he stated.
The multi-millionaire former hedge fund manager is likely to undertake severe spending cuts to try to rehabilitate Britain’s fiscal credibility, precisely as the country enters one of the most difficult downturns in decades, exacerbated by rising oil and food prices.
Truss’s recent mini-budget, which precipitated her collapse, increased borrowing costs and mortgage rates while driving investors away. British government bonds surged in the run-up to Sunak’s triumph, and their gains were extended on Monday.
Sunak, who will be chosen prime minister by King Charles on Tuesday, will also have to work hard to keep Britain’s largest political party together after some accused him of betrayal earlier this year when he withdrew from former leader Boris Johnson’s cabinet, precipitating his own demise.
Other Conservatives believe he is too wealthy to comprehend the day-to-day economic strains rising in Britain, and they are skeptical that he can ever win an election for a party that has been in power for 12 years. “I fear this decision destroys us as a party for the next election,” a Conservative MP said on condition of anonymity to Reuters.
Britain has been in a perpetual state of crisis since voting to leave the European Union in 2016, igniting a battle at Westminster over the country’s future that has yet to be settled. Johnson, the Brexit campaign’s face, led his party to a landslide win in 2019, only to be forced out of power less than three years later due to a series of scandals. Truss, his replacement, lasted just over six weeks before being forced out as well.
Sunak, according to historian and political biographer Anthony Seldon, had the most onerous economic and political inheritance of any British leader since World War II and would be limited by the blunders committed by his predecessor Truss.
Rishi Sunak lives in London. Rishi Sunak, the next leader of Britain’s Conservative Party, waves outside the Conservative Campaign Headquarters in London, Britain, on October 24, 2022. AFP/Maja Smiejkowska. There is no room for him to be anything but incredibly conservative and careful,” he remarked.
Sunak, he added, had maintained his cool when he became finance minister just as the COVID-19 pandemic hit Britain. Polls reveal that Britons desire an election in the midst of the upheaval. The Conservatives have till January 2025 to hold one.
The Conservatives, according to Angela Rayner, deputy leader of the opposition Labour Party, “crowned Rishi Sunak as prime minister without him saying a single word about how he would administer the country and without anyone having the chance to vote.”
Since Truss’ budget sent shockwaves through financial markets, Labour has held record leads in opinion polls of more than 25 points. Economists and investors hailed Sunak’s selection but questioned whether he could manage the country’s economy while keeping the party’s feuding sections united.
Many Conservative lawmakers were relieved that the party had rapidly chosen a new leader. Penny Mordaunt, who lost against Sunak, called his victory “historic” and “shows, once again, the diversity and brilliance of our party.” “Rishi has my complete backing.”
Crispin Blunt, a veteran member, told Reuters after Sunak spoke with lawmakers in a parliament chamber: “We will remain together as a party, not least because we don’t have an option. In there, he demonstrated the ability to command the entire party.”
The first true test of unity will come on Oct. 31, when finance minister Jeremy Hunt – the fourth person in the post in four months – is set to propose a budget to plug a black hole in the public finances estimated to be worth up to 40 billion pounds.
The work will be aided by a bond market rebound, with the 30-year gilt, which suffered extraordinary losses following the mini-budget on September 23, now recovering to values near to those reached early that day. Sunak’s appointment marks yet another first for the United Kingdom: he will be the country’s first prime minister of Indian heritage.
His family immigrated to Britain in the 1960s, during an era when many people from Britain’s former colonies came to assist rebuild the country following World War II. Sunak studied at Oxford University and Stanford University, where he met his wife Akshata Murthy, the daughter of Indian billionaire N. R. Narayana Murthy, the founder of outsourcing behemoth Infosys Ltd. Among the many messages of encouragement were “warmest greetings” from Indian Prime Minister Narendra Modi.
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