Prime Minister Rishi Sunak gestures as he delivers his first speech outside 10 Downing Street in central London, on October 25, 2022. Photo: Daniel Leal / AFP
Britain's new prime minister, Rishi Sunak, says he will try to fix the mess left by his predecessor, restore faith in politics and tackle a "profound economic crisis" but warned the country there will be difficult decisions.
Standing in front of his new Downing Street office, Sunak paid tribute to Liz Truss, whose economic programme roiled the markets, and all but chided Boris Johnson by saying the mandate the Conservatives were handed at a 2019 election the former prime minister won was not the property of one individual.
King Charles III greets Conservative Party leader and incoming prime minister Rishi Sunak during an audience at Buckingham Palace in London on October 25, 2022, where Sunak was invited to form a government. Photo: Aaron Chown / POOL / AFP
Sunak quickly reappointed Jeremy Hunt as his finance minister in a move designed to calm markets that had balked at his predecessor's debt-fuelled economic plans.
The former hedge fund boss said he would unite the country and was expected to name a cabinet drawn from all wings of the party to end infighting and abrupt policy changes that have horrified investors and alarmed international allies.
Speaking outside his official Downing Street residence, Sunak praised the ambition of his predecessor Liz Truss to reignite economic growth but acknowledged mistakes had been made.
"I have been elected as leader of my party and your prime minister, in part to fix them," said Sunak, who broke with the tradition of standing beside his family and cheering political supporters.
"I understand, too, that I have work to do to restore trust, after all that has happened. All I can say is that I am not daunted. I know the high office I have accepted and I hope to live up to its demands."
Sunak said difficult decisions lay ahead as he looks to cut public spending. Hunt has been preparing a new budget alongside borrowing and growth forecasts due out on Monday, and repeated his warning on Tuesday that "it is going to be tough".
The new prime minister also restored Dominic Raab to the post of deputy prime minister, a role he lost in Truss's 44 days in office, but reappointed James Cleverly as foreign minister and Ben Wallace at defence.
Penny Mordaunt, who ended her bid to win a leadership contest against Sunak on Monday, also retained her position as leader of the House of Commons, a role that organises the government's business in the lower house of parliament.
Sources had said she wanted to become foreign minister.
With his new appointments, Sunak was seen to be drawing ministers from across the Conservative Party while leaving others in post - a move that should ease concerns that Sunak might appoint loyalists rather than try to unify the party.
Tough decisions
Sunak, one of the richest men in parliament, is expected to slash spending to plug an estimated £40 billion hole in the public finances created by an economic slowdown, higher borrowing costs and an energy support scheme.
He will now need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions. But with his party's popularity in freefall, he will face growing calls for an election if he ditches too many of the promises that the Conservatives win election in 2019.
Economists and investors have welcomed Sunak's appointment - Ryanair boss Michael O'Leary said the adults had taken charge again - but they warn he has few options to fix the country's finances when millions are battling a cost of living crunch.
Sunak, who ran the Treasury during the Covid-19 pandemic, promised to put economic stability and confidence at the heart of the agenda. "This will mean difficult decisions to come," he said, shortly after he accepted King Charles's request to form a government.
Sunak also vowed to put the public's need above politics, in recognition of the growing anger at Britain's political class and the ideological battles that have raged ever since the historic 2016 vote to leave the European Union.
Sunak, a Goldman Sachs analyst who only entered parliament in 2015, faces a challenge ending the factional infighting that has brought his party low. Many Conservatives remain angry with him for quitting as finance minister in July and triggering a wider rebellion that ended Boris Johnson's premiership.
Others question how a multi millionaire can lead the country when millions of people are struggling with surging food and energy bills.
"I think this decision sinks us as a party for the next election," one Conservative lawmaker told Reuters.
Historian and political biographer Anthony Seldon said Sunak would also be constrained by the mistakes of his immediate predecessor.
"There is no leeway on him being anything other than extraordinarily conservative and cautious," he told Reuters.
- Reuters