On Tuesday, Rishi Sunak became Britain’s third prime minister in two months, entrusted with confronting a looming economic catastrophe, a feuding political party, and a bitterly divided population in one of the most difficult situations faced by any new leader.
King Charles requested the former hedge fund boss, 42, to form a government. He will work to put a stop to the squabbling and infighting at Westminster, which has frightened investors and scared foreign allies.
Following his speech from Downing Street, he will begin assembling his cabinet of senior ministers.
Because of the downturn in the economy, rising borrowing prices, and a six-month initiative to help people with their energy bills, Sunak, one of the richest parliamentarians, will need to make significant spending cutbacks to close a shortfall in the state finances estimated to be worth $40 billion.
If Sunak deviates too far from the policy maifesto that helped the Conservative Party win the general election in 2019, when Boris Johnson promised to make significant investments in the nation, his party’s popularity is in free decline and there are mounting demands for an election.
Sunak’s appointment, according to economists and investors, will calm the markets, but they warn that he has few alternatives when millions of people are struggling with cost of living.
“With a recession in 2023 now increasingly likely, and the next general election in only two years’ time, Rishi Sunak can expect a challenging premiership,” Eiko Sievert at the Scope ratings agency told Reuters.
Sunak has warned his coworkers that they will experience an “existential crisis” if they do not work to lead the nation through the escalating inflation and skyrocketing energy prices that are causing many people and companies to cut spending.
“We now need stability and unity, and I will make it my utmost priority to bring our party and our country together,” he said as he was elected by his lawmakers on Monday.
Sunak, Britain’s youngest prime minister for more than 200 years and its first leader of colour, replaced Liz Truss who resigned after 44 days following a “mini budget” that sparked turmoil in financial markets.