LONDON (Reuters) – Rishi Sunak became Britain’s third prime minister in two months on Wednesday and promised to rescue Britain from a deep economic crisis and rebuild confidence in politics.
Sunak quickly reappointed Jeremy Hunt as Chancellor of the Treasury to calm markets hesitant about his predecessor’s debt-backed economic plans.
The former hedge fund boss said he would unite the country, being picked from all branches of the party to end infighting and abrupt policy changes that have terrorized investors and alarmed international allies. He was expected to nominate a cabinet.
Speaking outside his Downing Street residence, Snack praised his predecessor, Liz Truss, for her ambitions to rekindle economic growth, but admitted she was wrong.
“I was elected party leader and prime minister, but also to set them right,” said Sunak, who broke with the tradition of standing by his family and cheering for political supporters.
“I also understand that after all that has happened, there is work to be done to restore trust…”
Sunak said he faces tough decisions as he considers cutting public spending. Hunt, who the truss has appointed to calm a turbulent market in a dash for growth, is preparing a new budget along with borrowing and growth forecasts due Monday, which he said was “going to be tough” on Tuesday. repeated the warning of
The new prime minister also returned Dominic Raab to the position of deputy prime minister, playing the role he lost during Truss’ 44-day tenure, but reappointed James Cleverley as foreign secretary and Ben Wallace to defense.
Penny Mordaunt, who ended his bid to win the leadership contest against Sunak on Monday, also retained his position as leader of the House of Representatives, his role in organizing government affairs in the House of Representatives.
Sources said she wanted to become Minister of Foreign Affairs.
With the new appointment, Mr Sunak appeared to draw ministers from across the Conservative Party and leave others in the post.
tough decision
Sunak, one of the richest people in parliament, is looking to fill an estimated £40bn ($45bn) hole in public finances caused by a slowing economy, rising borrowing costs and energy assistance plans. expected to reduce spending.
He must now review all spending, including politically sensitive areas such as health, education, defense, welfare and pensions. But with his party’s popularity rapidly declining, he will face growing calls for an election if the Conservative Party throws away too many promises to win his 2019 election. .
Economists and investors have welcomed Sunak’s appointment – Ryanair boss Michael O’Leary said an adult was in charge again – but millions of people are battling a cost-of-living crisis. He warns that he has few options for fixing the country’s finances when he is in power.
[1/8] King Charles III welcomed Lisisnak to an audience at Buckingham Palace in London, where he invited the newly elected leader of the Conservative Party to become Prime Minister and form a new government. Photo Date: Tuesday, October 25, 2022.
Sunak, who ran the Ministry of Finance during the COVID-19 pandemic, promised to put economic stability and confidence at the center of the agenda. “This means a difficult decision to make,” he said shortly after accepting King Charles’ request to form a government.
Snack also said he prioritized the needs of the people over politics, recognizing growing anger and ideological struggles against Britain’s political class since the historic Brexit referendum in 2016. I swore.
A worker heading to London’s financial district is Britain’s youngest prime minister in over 200 years, at age 42, and the first leader of a person of color, Sunak looks like the best of the bad bunch.
“I think he was competent, and that’s really what you should expect at this point,” said James Eastbook, 43, a management consultant.
With two prime ministers appointed in two months without a popular vote, some are calling for a general election now, while others want Sunak to stay until the next elections due by January 2025. I was there.
political maneuvering
Sunak, a Goldman Sachs analyst who just joined parliament in 2015, faces the challenge of ending the factional infighting that has brought his party to a standstill. Many Conservatives are angry that he resigned as finance minister in July, sparking a widespread uprising that ended Boris Johnson’s premiership.
Some wonder how billionaires can lead a country when millions are struggling with soaring food and utility costs.
A Conservative MP told Reuters: “I think this decision will sink us as a party in the next election.
Historian and political biographer Anthony Seldon said Mr. Sunak will also be constrained by the mistakes of his predecessor.
“There is no room for him to do anything other than he is very conservative and cautious,” he told Reuters.
Many politicians and officials abroad welcomed Sunak’s appointment as they saw the country, once seen as a pillar of economic and political stability, plunge into brutal infighting.
Sunak, a Hindu, will also become Britain’s first Indian prime minister.
US President Joe Biden described it as a “groundbreaking milestone”, and leaders of India and other countries welcomed the news. Snak’s billionaire father-in-law, NR Narayana Murthy, said he would serve Britain well.
“We are proud of him and wish him every success,” said the founder of software giant Infosys in a statement.
($1 = £0.8864)
Written by Kate Holton and Elizabeth Piper.Editing by Hugh Lawson and John Boyle
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