The ones that is rising up in hopes and grabbing their chair of joy. I would say your turning the tables a bit to fast. People should remember the time that Rishi Sunak, one of the wealthiest men in the United Kingdom was the Chancellor. He held that role for some time and had the ability to shift economic policies. That’s why this period has to be considered now that his officially the new Prime Minister of the United Kingdom.
I don’t want any ill for the man. This is his moment of prestige and prominence. He is taking over from a hectic turmoil of Truss and the falling pendulum of Boris Johnson. All the things that the Tories has done for 12 years and the shifts of policies are now rearing it’s ugly head. That’s not Sunak’s fault, but he was a part of it. He had plenty of time to make a difference, but he chose to align and work within those perimeters.
That’s why as his becoming the Leader of the Conservative Party and the Prime Minister. This is happening with the blessing of the Tories MPs and not the electorate. His the third PM of the 2022. Previously in the year he lost the campaign to Truss and now he succeeded the second time. Meaning his resilience and will to get there pushed him over the finish-line.
Because of that backdrop, I dropping a few breadcrumbs from the outlook on his term. The people he picks or appoints in cabinet will be detrimental and show his real alliances. Just like Truss chose to be aligned with ERG group of MPs. The same will be important to follow with Rishi.
That’s why these texts are important!
“When it comes to tax and spend, Rishi Sunak is proposing nothing beyond current government policy in the short term – unsurprisingly, given that he set these policies as Chancellor. We therefore know a lot about what we would get under his premiership, at least initially, without his having to say much. We would have tax heading towards its highest sustained level in 70 years as a share of national income, though with an intention to bring taxes down once he has ‘gripped inflation’” (…) “There would be some headroom against the government’s fiscal targets – including the target of taxes covering all day-to-day spending by 2024-25 – though not enough to allow the Chancellor to rest easy, given the degree of economic turbulence and uncertainty. In the longer term, Mr Sunak has been clear that he does wish to cut taxes, but not until inflation has fallen back” (Stuart Adam Robert Joyce Isabel Stockton Tom Waters and Ben Zaranko – ‘ Tax and spending policies of Conservative leadership contenders’ 21.07.2022, The Institute for Fiscal Studies (IFS)).
“The hike and the controversial loan-not-loan to deal with rising energy prices is “Treasury’s revenge for profligacy,” said another senior MP. But for many, it also highlights the line between good politics and good economics. If you hurt people in their pocket, it’s unlikely they are going to reward you at the polls. “The economic problems are starting to stick to him,” says another senior backbencher. “I think we are past peak Rishi.”” (Catherine Neilan – ‘’Past peak Rishi’: Why Conservative support is ebbing from Sunak as favourite to replace Boris Johnson’ 14.02.2022, Business Insider).
“Whether Sunak has penned a note for his successor quipping that the money is all gone remains to be seen. He undoubtedly should. The Chancellor leaves a worse legacy than perhaps any predecessor of modern times. Inflation is running at nine per cent. The trade deficit has blown out to a mind-boggling eight per cent of GDP. The pound is tanking on the currency markets, real wages are collapsing, strikes are rampant, and the economy is heading for a recession. It is possible that Tony Barber, Edward Heath’s Chancellor of the early 1970s, left the nation’s finances in a worse state. But even that is debatable” (Matthew Lynn – ‘Rishi Sunak won’t be missed as Chancellor’ 05.07.2022, The Spectator).
There are certain aspects here that will key for the future. It is not like Sunak isn’t in favour of tax-cuts as well. That was the downfall of Truss and Kwateng. Certainly and hopefully he doesn’t usher in another “biscotti”. Who knows if his naive enough to do so?
What is striking is that his time as a Chancellor bought him enough peace in Westminster, but not across the Kingdom. Neither does he have the confidence or the grand support as other Prime Ministers. There is already calling for a snap election or a General Election. Since, the coronation of Sunak will be questioned. He don’t have a mandate or a popular vote behind him. His just a MP crowned because the two previous PM’s failed miserably.
Now as PM Rishi Sunak has not only to prove himself and his worth. Truss has broken the economy and the financial market. The Truss cabinet created worse for pensioners, gilt-markets and the mortgages, as the energy crisis is growing ahead of winter. Therefore, the Prime Minister has to stand tall and isn’t having it easy. That with the costs and burdens of Brexit will be put on him. The ramifications of that in combination of the downturn after the lockdowns and the biscotti “mini-budget” will linger over his head. There is no soft landing or time for a waiting period. He has to carry the weight and pick the right aides to find a way out of this.
As PM Sunak will not have the time or the ability to fail. We see how that cost Truss. He cannot do the same and risk it on the altar of financial speculations. That would again create prolonged agony and further the downfall of the financial market. The Tories has already shown how arrogant or ignorant of the plights of the general public. Now, one of the wealthiest men of the Kingdom has to prove that he cares and have the answers.
Time will tell if he does. It won’t be easy and he has to chose wisely. In the beginning he cannot risk or take gamble. If he does… he can easily follow Truss and be a short-term PM without a legacy worth clinging on too. Peace.