Skip to content
Search

Latest Stories

Sunak faces daunting task as he becomes UK prime minister

With debt interest costs rising and the outlook for the economy deteriorating, he will need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions.

Sunak faces daunting task as he becomes UK prime minister

Rishi Sunak will face one of the greatest challenges of any new leader when he becomes British prime minister on Tuesday, needing to tackle a mounting economic crisis, a warring political party and a deeply divided country.

The 42-year-old former finance minister becomes Britain's third prime minister in less than two months, after infighting and feuding at Westminster that has horrified investors and alarmed international allies.


The former hedge fund boss - and one of the richest politicians in parliament - will now need to find deep spending cuts to plug a 40 billion pound ($45 billion) hole in the public finances at a time when his party's standing in the country has plummeted.

He warned his Conservative colleagues on Monday that the party faced an "existential crisis" if it did not help to steer the country through what he described as a "profound economic challenge.

"We now need stability and unity, and I will make it my utmost priority to bring our party and our country together," he said.

Sunak, Britain's youngest prime minister for more than 200 years and its first leader of colour, will replace Liz Truss who resigned after 44 days following a "mini budget" that sparked turmoil in financial markets.

With debt interest costs rising and the outlook for the economy deteriorating, he will need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions.

MOUNTING PROBLEMS

His first task, after being appointed by King Charles at Buckingham Palace, will be to select a cabinet of senior ministers that some Conservative lawmakers hope will include politicians from all wings of the party.

He is expected to retain Jeremy Hunt as finance minister after the former foreign and health secretary helped to calm volatile bond markets by ripping up most of Truss's economic programme.

Investors will also want to know if Sunak will stick to a plan to publish a new budget alongside borrowing and growth forecasts on Oct. 31, which would help inform the Bank of England's next move on interest rates on Nov. 3.

Sunak, a Goldman Sachs analyst who only entered parliament in 2015, will also need to unite his party, aware that voters are increasingly angry over the antics of politicians at Westminster as the economy heads for recession, spurred by rising energy and food costs.

Sunak was blamed by many in the party when he quit as finance minister in the summer, triggering a wider rebellion that brought down the-then leader Boris Johnson.

While many expressed relief on Monday that the party had settled on a new leader quickly, a sense of distrust remained among some while others questioned whether struggling families would relate, or ever vote, for a multimillionaire.

"I think this decision sinks us as a party for the next election," one Conservative lawmaker told Reuters on condition of anonymity.

Historian and political biographer Anthony Seldon told Reuters that Sunak had the most difficult economic and political inheritance of any British leader since World War Two, and would be constrained by the mistakes of his predecessor.

"There is no leeway on him being anything other than extraordinarily conservative and cautious," he said.

After politicians and officials in foreign capitals looked on in horror as a country once seen as a pillar of economic and political stability embarked on a bout of brutal infighting, many welcomed Sunak's appointment as a fresh start.

His appointment also marks a first in Britain as Sunak, a Hindu, becomes its first prime minister of Indian origin.

(Reuters)

More For You

Starmer faces revolt as welfare bill vote sparks Labour uproar

Keir Starmer speaks during a reception for public sector workers at 10 Downing Street in London on July 1, 2025. (Photo by CARL COURT/POOL/AFP via Getty Images)

Starmer faces revolt as welfare bill vote sparks Labour uproar

PRIME MINISTER Keir Starmer faced the most serious test of his leadership on Tuesday (1) as his government’s flagship welfare reforms came under fierce attack from within his own party.

The day was marked by emotional speeches, last-minute concessions, and a deep sense of division among Labour MPs, many of whom said the proposed changes would push vulnerable people into poverty

Keep ReadingShow less
Lucy Letby

Letby, from Hereford in western England, was charged in 2020 after a series of deaths in the hospital's neo-natal unit.

Three senior hospital staff arrested in Lucy Letby case probe

POLICE on Tuesday said they had arrested three senior staff members at the hospital where nurse Lucy Letby was found guilty of murdering seven babies. The arrests were made on suspicion of gross negligence manslaughter.

The investigation was launched in 2023 at the Countess of Chester Hospital (CoCH) in northwest England, following Letby’s conviction and life sentence for killings that took place between 2015 and 2016.

Keep ReadingShow less
food-delivery-getty

Uber Eats and Deliveroo will tighten ID checks, including facial verification, to curb illegal migrant work after UK government pressure. (Photo: Getty Images)

Getty Images

Food delivery platforms to step up ID checks after migrant work abuse reports

FOOD delivery companies Deliveroo, Uber Eats and Just Eat have agreed to strengthen security measures, including facial verification checks, to prevent irregular migrants from working through their platforms, following criticism from the UK government.

The announcement came after the Labour government summoned the three firms for a meeting in response to a report by The Sun which exposed how some migrants were bypassing rules and working illegally in the gig economy sector.

Keep ReadingShow less
David Joseph

Joseph has chaired several BRIT Awards shows and was an executive producer of the Oscar and BAFTA-winning 2015 documentary Amy.

David Joseph named new CEO of the RSA

THE ROYAL SOCIETY OF ARTS (RSA) has announced the appointment of David Joseph CBE as its next chief executive officer. He will take over the role in September, succeeding Andy Haldane.

Joseph previously served as chairman and CEO of Universal Music UK for 17 years. During his time at the company, he oversaw its transformation into a global exporter of British music and worked with several major international artists.

Keep ReadingShow less
Labour Rift Deepens as MPs Prepare for Crucial Welfare Bill Vote

People take part in a protest against disability welfare cuts on June 30, 2025 in London. (Photo: Getty Images)

Getty Images

MPs to vote on welfare bill amid Labour divisions

DOZENS of Labour MPs are expected to vote against the government’s welfare reforms despite recent concessions aimed at easing opposition.

The government had initially planned to tighten eligibility for Personal Independence Payment (Pip) but later said the stricter rules would only apply to new claimants from November 2025.

Keep ReadingShow less