Rishi Sunak: The Conservative Party has chosen Rishi Sunak as their candidate to become the country’s first prime minister of Indian descent. His tenure in office won’t be simple, though. The challenges he has faced since taking office are listed below.
The first Prime Minister of the United Kingdom of Indian descent will be Rishi Sunak. After failing to garner the backing of the necessary number of MPs to continue competing for the top government position, Conservative MP Penny Mordaunt withdrew from the campaign.
Rishi Sunak, however, finds the road ahead to be challenging. With the economy in freefall, the political landscape in disarray, a lack of energy following the Russia-Ukraine war, and soaring household power costs, Sunak will be closely scrutinized from the moment he takes office.
The following are the principal difficulties he would encounter as soon as he becomes Prime Minister of the UK:
POLITICAL STABILITY ENSURED
The fifth UK prime minister in six years will need to be kept in mind when Conservative MP Rishi Sunak meets with King Charles at Buckingham Palace tomorrow to lay a claim to lead the country’s government. He will be the second PM in as many months out of the five.
Therefore, in order to steer the administration and avoid any internal strife, he must avoid the errors made by his predecessor, Liz Truss, and maintain his party’s MPs.
A STALLED ECONOMY’S REVIVAL
Rishi Sunak will be required to revive the economy after the Pound Sterling’s recent record low against the US Dollar. The Bank of England intervened and purchased government debt worth £65 billion to prevent some of the country’s pension funds from failing after his predecessor Liz Truss’ £45 billion tax-cut proposal drove the markets into a frenzy and caused widespread selling.
The effects of the program even caused the British pound to drop to a record low in relation to the US dollar. The policy’s announcement caused the pound to trade at $1.1289 at the time. The Pound must strengthen, and Rishi Sunak must make sure that markets that went on a selling binge return to normal.
REINING IN LIVING COST
Under Liz Truss and Boris Johnson, UK inflation reached 40-year highs as people struggled to keep up with rising living expenses. The Office for National Statistics reports that in September, the consumer price index increased to 10.1%. The amount matched the CPI amount from July, when Boris Johnson was in charge. In August, the CPI decreased slightly to 9.9%, but Liz Truss was unable to keep things moving in the right direction.
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In order to restore public confidence in his party and administration, Sunak, as PM, must take steps to reduce household expenses and lower the costs faced by the average person.
MANAGEMENT OF LONG-TERM Illness
While the number of people without a job in Britain has reached a 50-year low, this number has climbed due to “long-term sickness.” From June to August, the country’s jobless rate decreased to 3.5%, according to a study by The Guardian. The previous low point was in February 1974.
But the proportion of “economically inactive” working-age adults increased significantly. This indicated that neither they nor they were seeking employment. “Although there are almost 1.2 million unemployed individuals, the three-month inactivity rate increased by 0.6 percentage points to 21.7%, with nearly 9 million persons aged 16 to 64 being economically inactive. Students and long-term illness, which reached a record high, were the main contributors to the hike, with 16 to 24 year olds and people in their 50s and 60s experiencing the highest rises in inactivity rates. According to the research, statistics from the Office for National Statistics showed that about 2.5 million people were not active due of ongoing health issues.
Rishi Sunak needs to address this and increase active employment while bringing down the number of “long-term sick” people.
