This was in contrast with Truss’s term, whose sweeping tax cut plan raised fears about the country’s fiscal health, triggering a crash in markets and the pound…reports Asian Lite News
Rishi Sunak on Wednesday defended the reappointment of party colleague Suella Braverman as the home secretary, ruled out an early election, and indicated “difficult decisions” will be taken soon for the economy, deflecting attacks from the Opposition in parliament on his first full day as premier.
Sunak and his Conservative Party have been under pressure to call general elections, not due until 2024, as Britain got its third PM in less than two months, with each taking significantly different policy lines than their predecessor.
Chancellor of the Exchequer Jeremy Hunt – retained in Sunak’s cabinet along with several other senior ministers – said that Monday’s planned “medium-term fiscal statement” was no longer so pressing.
Instead, there will be a full budget statement on November 17 to lay out the new government’s tax and spending plans, Hunt told reporters. Markets were unperturbed by the postponement, suggesting Hunt and Sunak have successfully calmed investors’ nerves.
This was in contrast with Truss’s term, whose sweeping tax cut plan raised fears about the country’s fiscal health, triggering a crash in markets and the pound.
In addition to the economic challenge that Sunak’s administration faces, he will also need to balance internal party politics and the international commitments. The key concern here stems from his induction of Braverman in one of the top four ministerial posts.
Braverman, 42, resigned from the cabinet of former prime minister Truss last week, having breached the ministerial code by sending secure information from her private email. Starmer asked Sunak: “Was the home secretary right to resign last week for a breach of security?” He noted that Sunak has promised to govern with “integrity, professionalism and accountability”, but points out that he has put in charge of the Home Office a woman forced to leave her job just a week ago.
“Have officials raised concerns about his decision to appoint her?” Starmer asked Sunak. On the issue of the reappointment of Braverman, Sunak said she made “an error of judgement,” but she had recognised the “mistake”.
Countering the Labour leader, Sunak said Braverman will be focused on “cracking down on criminals” and “defending borders”, while the party in opposition (Labour) remains “soft on crime” and in favour of “unlimited immigration”. A second complication with Braverman is her stance on UK’s trade deals with India. The UK is in talks with India over whether to increase the number of business visas to Indian nationals as part of a potential free trade agreement, a stance that risks causing friction with Braverman.
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