Liz Truss, who had to resign in disgrace after her tax-cutting ideas backfired, is replaced by Rishi Sunak.
In a remarkable shift of power during an economic crisis, Rishi Sunak will be named today as the first British Prime Minister of Indian descent.
The following are the story’s top 10 points:
1. Yesterday, Mr. Sunak succeeded Boris Johnson as the leader of the Conservative Party after the latter withdrew his bid for a comeback and his rival Penny Mordaunt failed to get enough support from Conservative MPs.
2. Mr. Sunak will be the country’s youngest prime minister in more than 200 years at the age of 42. He replaces Liz Truss, who was forced to quit in disgrace after her attempts to lower taxes failed after only two months.
3. Even before Truss’s tax-cutting budget sent shockwaves through the market and caused the pound to plummet, the economy he inherited was on the verge of entering a recession.
4. The first prime minister to be chosen by King Charles after the passing of Queen Elizabeth is Mr. Sunak, who is currently meeting with him at Buckingham Palace. Two days prior to the Queen’s passing on September 8, Truss was chosen by her.
5. After her final cabinet meeting at 10 Downing Street around 09:15 GMT (2:45 PM IST), Truss, the British prime minister with the shortest tenure, will give a final speech. Over an hour later, Mr. Sunak probably will speak.
6. Yesterday, Mr. Sunak vowed “stability and togetherness” while bringing the party and the nation together in his speech to the public.
7. Before he faces the first round of “Prime Minister’s Questions” in the Parliament on Monday, Mr. Sunak will first need to assemble his top staff after giving his first speech from the steps of 10 Downing Street.
8. Boris Johnson might not be given a place in his cabinet after being forced to resign as prime minister, in part because Mr. Sunak resigned as Chancellor.
9. Mr. Sunak’s parents, who are of Indian heritage, crossed the East African coast to enter the UK in the 1960s. He is married to Akshata Murty, a Narayana Murthy, the founder of Infosys, descendant.
10. On Monday, Rishi Sunak received warmest greetings from Prime Minister Narendra Modi. As we implement Roadmap 2030 on global challenges, I am looking forward to working closely with you as UK PM. Happy Diwali to the living bridge of Indians in the UK as we forge ahead with our contemporary partnership Tweeted he.
What caused the crisis?
• On September 23, Britain’s financial markets were shaken as then-new Finance Minister Kwasi Kwarteng revealed billions of pounds in unfunded tax cuts.
• In order to stop a serious sell-off in the $2.3 trillion market for British government bonds that threatened to collapse the pension system and raise the likelihood of a recession, the Bank of England was forced to make emergency asset purchases.
• A substitute for Kwarteng to try to regain investor confidence, Jeremy Hunt made a historic U-turn on Monday and cancelled almost all of the economic strategy and reduced back the extensive energy support programme started by Truss in September.
• The BoE actions have drawn attention to a developing area of liability-driven investment in the British pensions sector.
Meets King Charles; Soon to Be UK PM, Rishi Sunak: 10 Points
