King Charles III officially appointed Rishi Sunak as Prime Minister of Britain, is the third British Prime Minister in two months and the youngest in more than two centuries. Britain's new Prime Minister Rishi Sunak said on Tuesday he would try to clean up the mess left by his predecessor, restore confidence in politics and tackle a "deep economic crisis" but warned the country would face difficult choices.
The 42-year-old former hedge fund boss has been tasked with forming a government by King Charles III in and will seek to end the power struggles and bickering at Westminster that have appalled investors and alarmed international allies.
Standing outside his Downing Street office, Sunak paid tribute to Liz Truss, whose economic program unsettled markets, saying the mistakes she made "were not the result of ill will or intent". Some mistakes were made. Not born of ill will or bad intentions. But on the contrary i will fix it.
And that work begins immediately. I will put economic stability and confidence at the heart of this administration's agenda. This means difficult decisions are made. Difficult things were for many. "All I can say is that I'm not intimidated.
I know the high office I have accepted and I look forward to fulfilling its requirements," he said. “So here I stand before you, ready to lead our country into the future. Put your needs ahead of politics to achieve and build a government that represents the best traditions of my party. Together we can achieve incredible things. Sunak, one of the richest men in Parliament, must find deep spending cuts to plug a hole in public finances caused by an economic slowdown, higher borrowing costs and a six-month utility bill bailout.
With his party's popularity in freefall, Sunak will also face growing calls for an election if he strays too far from the political manifesto that elected the Conservative Party in 2019, when then-leader Boris Johnson promised invest heavily in the country. Targeting Boris Johnson in his speech, he said the mandate given to the Conservatives in the 2019 election won by the former Prime Minister did not belong to any one individual and that he would be guided by his promises.
Economists and investors have said Sunak's appointment will calm markets but warn he has few easy options as millions grapple with a cost-of-living crisis.
With a recession in 2023 now increasingly likely and the next general election just two years away, Rishi Sunak can look forward to a challenging term in office," rating agency Scope's Eiko Sievert told Reuters. Sunak had warned his colleagues they face an "existential crisis" if they don't help guide the country through soaring inflation and record-high energy bills that are forcing many households and businesses to cut spending.
Now we need stability and unity, and I will make my top priority to unite our party and our country, he said when he was elected by his lawmakers on Monday. FINANCIAL TURBULENCE Sunak, Britain's youngest prime minister in over 200 years and first British-Asian leader, replaced Liz Truss, who resigned after 44 years. Days after a "mini-budget" that caused turbulence in the financial markets.
As the interest cost of debt rises and the economic outlook worsens, you now need to review all spending, even in politically sensitive areas like health, education, defense, welfare and pensions. This year's British politicians, politicians, journalists and photographers thronged Downing Street again on Tuesday to hear a farewell speech from Truss. Seven weeks after arriving as Prime Minister,
Truss made no apologies for her short tenure and said she knew Britain was ready for better days. During his tenure, the pound hit an all-time low against the dollar, borrowing costs and mortgage rates rose, and the Bank of England had to step in to keep pension funds from collapsing. Sunak is now beginning to assemble his cabinet, and some Conservative lawmakers are hoping it will include politicians from all wings of the party.
He is expected to retain Jeremy Hunt as Treasury Secretary after the former Secretary of State and Health helped calm volatile bond markets by scrapping most of Truss' economic agenda. Investors will also want to know if Sunak still plans to release a new budget on Oct. 31 along with borrowing and growth forecasts, which would help inform the Bank of England's Nov. 3 interest rate decision. POLITICAL MACHINES Sunak, a Goldman Sachs analyst who only entered Parliament in 2015, needs to win
for his party, aware that voters are growing increasingly angry at Westminster antics as the economy heads into recession. Many in the party blamed him when he resigned as Treasury Secretary over the summer, sparking a wider rebellion that toppled Johnson.
While many expressed relief that the party had quickly settled on a new leader, a sense of suspicion lingered for some, while others questioned whether struggling families ever identify with, or for, a billionaire vote for him." This decision sinks us as a party into the next election," a Conservative lawmaker told Reuters on condition of anonymity. Political historian and biographer Anthony Seldon told Reuters that Sunak would also be hampered by his predecessor's mistakes.
"By no means is he anything but extraordinarily conservative and cautious," he said. Many politicians and officials abroad, who have seen a country once seen as the pillar of political and economic stability plunge into brutal power struggles, welcomed Sunak's appointment. Sunak, a Hindu, also becomes Britain's first prime minister of Indian descent. US President N.R. Narayana Murthy said it would serve the UK well.
"We are proud of him and wish him every success," the founder of software giant Infosys said in a statement.