by Arkansas Rep. Rick Crawford and Barron’s European Bureau Chief Rupert Steiner discuss Liz Truss’s resignation and President Biden’s stance on inflation in ‘The Evening Edit.’
Leading a country is a tough job under any circumstances, but taking the helm when a nation is in the throes of a financial crisis adds layers of pressure and scrutiny to an already challenging task.
But that is what the UK’s new prime minister, Rishi Sunak, contemplates as he emerges into the international spotlight, with experts saying his next steps must focus on restoring the faith of the British people and the nation’s economy after weeks of of chaos under his predecessor. , the also conservative Liz Truss.
Former Chancellor Rishi Sunak speaks during the Tory Leadership Final Campaign at Wembley Arena on August 31, 2022 in London, England. (Dan Kitwood/Getty Images/Getty Images)
“Britain is really at a crossroads, and it’s been a perfect storm between the dissolution of the government and the passing of the Queen,” says Evan Nierman, chief executive of global public relations firm Red Banyon. “It’s a series of hits that happen in a whirlwind.”
Nierman says he believes “what Britons are looking for at the moment is a sense of that calm, unflinching determination that was Britain’s hallmark during the tumultuous [times in the] past: ‘Keep calm and carry on'”.
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Sunak seems to be off to a good start. In his first address to the nation after being named Truss’s replacement on Monday, he told the British people: “The UK is a great country. But there is no doubt that we face a profound economic challenge. We now need stability and unity.” … and I will make it my top priority to bring our party and our country together.”
Rishi Sunak, the UK’s incoming Prime Minister, leaves the Conservative campaign headquarters in London, UK, on Monday, October 24, 2022. (Chris J. Ratcliffe/Bloomberg via Getty Images/Getty Images)
Sterling rose and gold yields fell in reaction to the anticipated rise of Sunak, a former finance minister, as the nation’s new leader.
“At least future prime minister Rishi Sunak knows he has the markets on his side,” AJ Bell financial analyst Danni Hewson said Monday. “Investors clearly expect Sunak to stabilize the economy and the political situation, although it is difficult to determine at this point what the more difficult task is.”
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, offered predictions about what Sunak is expected to do in terms of policies to lead the country out of turmoil.
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“Gone are the days when Rishi Sunak was prepared to open government coffers to help the UK through a crisis,” Streeter wrote. “The pandemic spending spree is over and the former chancellor will take over the top job in the guise of a strict and austere director.”
As chancellor, Sunak unveiled a “mini-budget” last spring that raised the income threshold before workers must pay national insurance, cut the fuel tax and doubled the family support fund.
UK-based analyst Streeter said Sunak “will be determined never to see the bond market run amok again”, adding that he “will also want to show that he is cooperating with the Bank of England by being fiscally ultra-conservative.” in an attempt to tame high inflation.
Rishi Sunak is greeted by supporters as he arrives at the Conservative Party campaign headquarters after being announced as the winner of the Conservative Party leadership contest in London, Britain, on October 24, 2022. (Wiktor Szymanowicz/Anadolu Agency via Getty Images/Getty Images)
As for the political climate, Nierman says the UK faces some of the same divisive and polarizing issues as the US, and that may be a challenge Sunak can’t control.
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“To get through it, you’re really going to need to have people with different opinions coming together to find common ground, not just the opposing political parties, but even within the Conservative party itself,” he told FOX Business. “This is a time for Conservatives to put aside political differences and even policy differences for the sake of creating a stable government that can guide the country through this time.”
