New PM Sunak vows to lead Britain out of economic crisis

Sunak formally became Britain’s new prime minister after meeting King Charles at Buckingham Palace. He is tasked with tackling a mounting economic crisis, a warring political party and a deeply divided country in one of the greatest challenges to confront any new leader.

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.

Sunak, one of the richest men in parliament, will have to find deep spending cuts to plug an estimated 40 billion pound (1.73 trillion baht) hole in the public finances due to an economic slowdown, higher borrowing costs and a six-month programme of support for people’s energy bills.

After a tumultuous period in British politics, he was met with both cheers and jeers as he arrived at Downing Street.

The former hedge fund boss said he would unite the country and has set out to end infighting within the ruling Conservative Party.

Sunak has praised the ambition of his predecessor, Liz Truss, to reignite economic growth but acknowledged mistakes had been made.

Some of Truss’s economic plans horrified investors and alarmed international allies, ultimately helping to end her tenure after only 44 days.

Sunak’s appointment was met with optimism for future cooperation by China, but the Russian government said it saw little sign of improving strained relations that have only soured further during Moscow’s conflict with Ukraine.

European Commission President Ursula von der Leyen and Belgian Prime Minister Alexander de Croo were among the European leaders to offer their best wishes to the new PM.

As the first British PM of Indian heritage, Prime Minister Narendra Modi also sent his congratulations, while Britain’s high commissioner to its former colony said Sunak’s appointment was indicative of the cultural changes that have occurred in the UK.

“This is a sign of a different United Kingdom which there is today compared to the country which I grew up in,” said British High Commissioner to India Alex Ellis.

“They [British] have outgrown their racism, shown a tremendous willingness to absorb and admit people of other religious faiths and on top of that, they have looked at merit and not age or experience in deciding that he was the right man in the time of an economic crisis,” said Indian politician Shashi Tharoor.

Renowned sand artist Sudarsan Pattnaik also congratulated Sunak with a sand sculpture.

New cabinet

Sunak meanwhile appointed key ministers to his government.

With his new appointments, Sunak was seen to be drawing ministers from across the Conservative Party while leaving others in their posts – a move that should ease concerns that he might appoint loyalists rather than try to unify the party.

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 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 as defence.

Suella Braverman was reappointed as interior minister, less than a week after she resigned from the role for breaching government rules.

Braverman replaced Grant Shapps, who held the post for less than a week and was appointed business minister in Sunak’s government, taking over from Jacob Rees-Mogg.

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.

Michael Gove was appointed as the country’s levelling-up minister, a role he previously served between September 2021 and July 2022.

Gove, an influential figure in British politics for more than a decade, replaced Simon Clarke, who resigned earlier in the day after Sunak officially took office.

Kemi Badenoch has been re-appointed as trade minister, as was Chris Heaton-Harris as Northern Ireland minister and Michelle Donelan as culture secretary.

Therese Coffey, the outgoing deputy prime minister, became environment minister as Steve Barclay took over from her as health minister.

Nadhim Zahawi was named the Conservative Party’s new chairman as well as minister without portfolio.

Zahawi was finance minister for a brief period from July to September under Boris Johnson after Sunak resigned that role, triggering a rebellion against the former prime minister.

Gillian Keegan replaced Kit Malthouse as education secretary and Mark Harper took over from Anne-Marie Trevelyan as transport minister.

John Glen was appointed as chief secretary to the Treasury, replacing Edward Argar.

The role is one of the most senior ministerial positions within the finance ministry and carries responsibility for organising government departmental spending.

Simon Hart was appointed chief whip – the government role in charge of discipline within the Conservative Party – replacing Wendy Morton.

Reuters