Rishi Sunak is Britain’s new Prime Minister and has been named the country’s first leader of people of color.
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Britain’s new prime minister, Rishi Sunak, is due to take office on Tuesday and attempts to steer the country through the existing political and social cost of living crisis, making it one of the most difficult political intraits in Britain’s modern history. One. A discontinuity, and a looming recession.
The former finance minister has been named leader of the Conservative Party and thus the country’s next prime minister.
The 42-year-old was officially appointed by King Charles III and is scheduled to meet at Buckingham Palace on Tuesday morning after outgoing Prime Minister Liz Truss formally tendered her resignation to the king.
Sunak’s appointment is significant in that he is Downing Street’s first prime minister of color and the youngest leader in modern Britain. It is also Prince Charles’ first oath of office into a new government, just seven weeks after his late mother, Queen Elizabeth II, appointed Truss, who resigned 44 days after her.
But it is also because we are coming at a time of deep political and economic crisis for the country, with challenges spanning economic instability, skyrocketing inflation, tight finances, industrial unrest and party politics looming large from the outset. Included in the Sunak tray.
Snack has said little about his plans so far in his tenure, virtually silently taking over the top job after a fast-paced leadership race over the weekend.
But as the former Chancellor of the Exchequer who guided the UK through the Covid-19 pandemic, restoring the country’s standing in the UK’s beleaguered economy and investment community may become a top priority.
In a brief speech on Monday, Sunak said he was determined to overcome the “serious economic challenges” facing the country and promised to bring “stability and unity”.
Sunak is expected to keep current Finance Minister Jeremy Hunt, who is credited with calming markets following the Truss government’s disastrous mini-budget, and the country’s revised fiscal budget on Monday. We are planning to develop a strategy.
Treasury Secretary Jeremy Hunt arrives at the back door of Downing Street in London.
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Economists said it could somehow help reaffirm the stability of the UK economy, but investors will take a close look at the upcoming budget, noting that the pair will hit a gaping 400 in public finances. It added that it would see exactly how it would bury £100m ($45bn).
Ruth Gregory, UK senior economist at Capital Economics, said: “If fiscal rules are too lax or if the policies announced to fill fiscal holes are deemed unattainable, investor confidence will suffer. cannot be reconstructed,” he said.
Rapid Inflation and Industrial Unrest
Still, while Sunak is seen as having a safer fiscal run than its predecessor, investors are skeptical of financial markets as the new government has a long way to go in solving the country’s broader economic problems. He warns that recovery in relief may be short-lived.
The UK is the only G7 economy that has not yet reached pre-pandemic GDP levels by the second quarter of 2022. In fact, the economy shrank by 0.3% in August, according to the National Bureau of Statistics. Government agencies predict the UK is already in a full-year recession.
It comes at a time when Britain faces labor shortages and continued industrial unrest, with widespread strikes among postal workers, rail workers and public barristers leading to months of turmoil.
Meanwhile, UK inflation returned to a 40-year high of 10.1% in September, energy prices continued to rise in the wake of Russia’s war in Ukraine, and some energy suppliers saw their Warning of possible power outages.
“The UK is still facing a storm of economic problems,” Devere Group CEO Nigel Green said in a note Monday. “There is a severe and painful coming recession, soaring energy prices, over 10% inflation, labor shortages, ongoing drama in his supply chain and the Bank of England eager to raise rates.”
unite the divided Conservative Party
Sunak’s mandate as prime minister is further complicated by deep-seated divisions within the ruling Conservative Party.
Despite having significant support from Tories in parliament, Sunak was seen as a divisive figure within the party and was widely criticized for his death after former Prime Minister Boris Johnson resigned as finance minister. .
As Britain’s new Prime Minister, Rishi Sunak has a difficult task: financial crises, political infighting and rising energy prices.
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Sunak’s success will therefore depend closely on his ability to revitalize his party and unite it under his new economic and political vision.
Highlighting over the next few days will be Sunak’s cabinet appointments, which will provide him with an opportunity to overhaul the party’s top ranks and appoint a wide range of ministers from across the Tory faction.
British Foreign Secretary James Cleverley told Sky News on Tuesday that rather than focusing on loyalists, as the Truss has been criticized, the Sunak government should take the best ministers available. rice field.
“We have to have the first 15 on the pitch and I know Rishi understands that,” said Cleverley.