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Rishi Sunak became Britain’s third prime minister in two months on Tuesday, tasked with tackling a deepening economic crisis, warring parties and a deeply divided country, the biggest challenge any new leader will face. one of the challenges.
Sunak said he was not intimidated by the scale of the challenge, promising to lead the country through the economic crisis and rebuild trust in politics.
The 42-year-old former hedge fund boss, who has only been in elected politics for seven years, is tasked with ending the political infighting and radical changes in policy that have alarmed investors and international allies.
He warned that tough decisions lie ahead as he looks to cut public spending and correct “mistakes” made by Liz Truss during her short and chaotic tenure in Downing Street, at a time when the country is in recession.
The economy is in trouble
Sunak, one of the richest men in parliament, will have to seek deep spending cuts to fill the public coffers of around £40bn (£45bn) due to a slowing economy, rising borrowing costs and a six-month support package. dollars) for people’s energy bills.
With his party’s popularity in free fall, Sunak will also face mounting electoral calls if he falls far short of the Conservatives’ policy manifesto for the 2019 election, with then-leader Boris Boris Johnson has pledged to invest heavily in the country.
Economists and investors said Sunak’s appointment would calm markets, but warned he had few easy options as millions struggled with the cost of living.
“With a recession in 2023 increasingly likely and the next general election only two years away, Rishi Sunak can look forward to a challenging premiership,” Scope ratings agency Eiko Sievert told Reuters.
Economists and investors have welcomed Sunak’s appointment – Ryanair boss Michael O’Leary says adults are back in power – but warn that this comes at a time when millions are battling a cost of living crisis At the time, he had little solution to the country’s financial problems.
Sunak warned his colleagues that they would face an “existential crisis” if they didn’t help guide the country through soaring inflation and record energy bills that forced many households and businesses to cut back on spending.
“We need stability and unity now, and I will make it my priority to bring our party and our country together,” he said when he was elected by lawmakers on Monday.
spending plan
Sunak, Britain’s youngest prime minister in more than 200 years and the first leader of colour, succeeds Liz Truss, who resigned 44 days after a “mini-budget” that roiled financial markets.
Sunak, who ran the Finance Ministry during the Covid-19 pandemic, pledged to put economic stability and confidence at the heart of the agenda. “That means making tough decisions,” he said shortly after accepting King Charles’ request to form a government.
Sunak also vowed to put the needs of the public above politics, in recognition of growing anger at Britain’s political class and the ideological battle that has raged since the historic vote to leave the European Union in 2016.
With interest costs on debt rising and the economic outlook worsening, he now needs to review all spending, including those in politically sensitive areas such as health, education, defence, welfare and pensions.
He will have to oversee tax hikes and cuts in public spending as he tries to rein in inflation and government debt. A wave of wage strikes that has already led to strikes by railroad workers, telecom workers, garbage collectors, lawyers and dockworkers is likely to spread.
political intrigue
Goldman Sachs analyst Sunak, who only entered parliament in 2015, had to unite his party, realizing voters were growing increasingly angry at Westminster’s antics as the economy headed toward recession.
When he resigned as finance minister in the summer, he was blamed by many in his party for sparking a wider rebellion that led to the ouster of Boris Johnson.
While many expressed relief that the party had quickly identified a new leader, some remained distrustful, while others questioned whether struggling families would contact or vote for a multi-millionaire. “I think this decision makes us the party for the next election,” a Conservative MP told Reuters on condition of anonymity.
Historian and political biographer Anthony Selden told Reuters that Sunak would also be limited by his predecessor’s mistakes.
“He has no room for anything other than being very conservative and cautious,” he said.
Sunak was elected leader of the Conservative Party after becoming the only candidate to contest an in-party election through 100 candidates nominated by other MPs.
In addition to stabilizing the UK economy, Sunak must also work to unite a ruling party that has been mired in bitter debate as polling ratings plummeted.
Conservative MP Victoria Atkins, an ally of Sunak, said the party would “settle down” under Sunak. “We all understand that we really have to support Rishi right now – and, to be fair, that’s exactly what the party does,” she told radio station LBC.
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