Political/commercial background

摘要

Rishi Sunak, a former chancellor of the exchequer, became the UK's third prime minister of 2022 on October 25th, replacing Liz Truss, who resigned after only 49 days in office. Mr Sunak was the runner-up in the previous Conservative Party leadership contest, which Ms Truss won on the promise of lower taxes and looser fiscal policy more generally. However, once she took power, Ms Truss's proposals triggered a severe adverse market reaction, lifting borrowing costs sharply and weakening sterling. This eventually forced her to abandon her fiscal programme before resigning. Mr Sunak, having campaigned for party leader on more fiscal restraint, is focusing his premiership on shoring up the public finances. However, the Conservative Party remains divided on other issues, including the treatment of irregular migrants arriving in small boats, energy and climate policy, and managing the fallout from the UK's departure from the EU in 2020. Despite rebounding slightly from its extraordinary lows under Ms Truss, the Conservatives still trail the centre-left opposition Labour Party in the polls. These factors will fuel discontent and division within the Conservatives, limiting Mr Sunak's ability to push significant policy beyond addressing the immediate energy and fiscal crises, despite the party's roughly 80-seat majority in parliament.