Rishi Sunak, a former Goldman Sachs (GS) investment banker and hedge fund manager, has
been named England’s new prime minister.
The previous finance minister who steered the British economy through the pandemic, Sunak
was named leader of England’s Conservative Party, making him the country’s next prime
minister, after his only competitor, Penny Mordaunt, pulled out of the leadership race.
The 42-year-old Sunak will be officially installed as prime minister by King Charles III, whom he
will meet at Buckingham Palace later today (October 25).
Sunak’s swearing in ceremony is the first by King Charles’ and comes just seven weeks after
his late mother, Queen Elizabeth II, appointed former Prime Minister Liz Truss, who resigned 44
days later after introducing a disastrous tax cut plan.
Sunak assumes office during a political and economic crisis in the United Kingdom that includes
economic instability, record inflation, weak public finances, and labour unrest.
Sunak has provided little details of his plans once in office. However, as a former finance
minister, reviving the U.K.’s economy and the country’s status among financial markets are sure
to be top priorities.
It is expected that Sunak will retain current Finance Minister Jeremy Hunt, who is credited with
calming markets following the Truss government’s mini-budget, and who is due to set out the
country’s revised fiscal plan in coming days.
Sunak was one of the first politicians to publicly raise concerns about the Truss government’s
proposed tax cuts, which were unfunded and caused turmoil in the U.K. bond market.
England is the only G7 country that has not retained its pre-pandemic GDP level. The nation’s
economy shrank by 0.3% in August, according to the Office for National Statistics, and some
ratings agencies are forecasting that Britain is already in a recession.
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