Sunak, the former Chancellor of the Exchequer, told the paper he feared that unfunded spending commitments would lead to spiraling debt, rising inflation, interest rates and borrowing costs…reports Asian Lite News
Rishi Sunak, the underdog in the Conservative leadership race, has warned that the next prime minister faces the risk of markets losing confidence in Britain’s economy.
Sunak’s opponent, Liz Truss, who is widely expected to win the race to No. 10 next Monday, has said she would swiftly implement a series of tax cuts, as well as some as yet undefined support for households, at an emergency fiscal event in mid-September.
But in an interview with the Financial Times published Tuesday night, Sunak said he “struggled to see” how Truss’s tax and spending commitments “add up,” warning it would be “complacent and irresponsible” for the next prime minister “not to be thinking about the risks to the public finances.”
Looking forward to speaking to thousands of @Conservatives members tonight at the final hustings in London.
I'm so grateful to all the people who turned up, signed up and helped us get our message out.
Sunak, the former Chancellor of the Exchequer, told the paper he feared that unfunded spending commitments would lead to spiraling debt, rising inflation, interest rates and borrowing costs.
Urging Truss to stick to fiscal rules that would see debt falling as a share of GDP within three years, Sunak said: “Ultimately, you have to decide whether you think sustainable rate of borrowing are important or not. I think they are.”
He added: “We have more inflation-linked debt by a margin than any other G7 economy — basically more than double. Because of the structure of QE [quantitative easing], we’re also particularly much more sensitive to an upward rate cycle than we have been.”
Sunak also told the FT that the Bank of England did not need a new mandate, and defended his demand for “call in” powers for ministers over City regulators.
The leadership contest has been dominated by how to respond to Britain’s growing economic woes, with the rival candidates and their camps descending into open political warfare…reports Asian Lite News
The race to become the next prime minister is in its final week, with Liz Truss appeared poised to secure the top job, along with daunting challenges.
Foreign Secretary Truss, 47, has consistently outrun 42-year-old former finance minister Rishi Sunak by wide margins in polls of Conservative party members who will decide the contest, which started in early July.
An estimated 200,000 Tory grassroots have been able to vote since earlier this month for their preferred candidate, before postal and online ballots close on Friday.
The winner will be announced next Monday and replaces outgoing leader Boris Johnson in Downing Street the following day — only to face immediate crises over the spiralling cost of living.
The unenviable job of leading Britain through its highest inflation in 40 years and warnings of an imminent recession arose after Johnson announced in early July that he would be standing down.
Thank you to the thousands of @Conservatives members and #LizForLeader supporters putting trust in me to unite our Party and deliver for the whole United Kingdom.
It followed months of scandals that eventually triggered Sunak and dozens of other ministers to resign from government, forcing his departure.
However, some ministers and MPs — including Truss — remained loyal to the end, arguing Johnson deserved more time to turn around his controversy-tarred three-year tenure.
Nearly 10,000 Tory members are reportedly so angry at his enforced resignation they are pushing the ruling party to allow a vote over whether to accept it.
The Tory hierarchy is resisting the move while Downing Street has distanced itself from the campaign, insisting Johnson will back the winner of the leadership fight.
Whoever that is may struggle to reunite the Conservatives, with the splits worsened by the bitter battle between Truss and Sunak.
Eight Conservative MPs initially qualified to run in the race, before the party’s MPs whittled that number down in five ballots.
Sunak was the early frontrunner, topping all those votes of Conservative MPs while Truss repeatedly finished third.
She scraped into the final pairing on July 20 by just eight votes.
However, once the run-off began she quickly became the frontrunner, winning the endorsements of big hitters in Johnson’s outgoing cabinet and stealing the support of several MPs from her rival’s camp.
Sunak, who has faced a backlash from some Tory members over his part in ousting Johnson, has been relegated to long-shot contender.
Another brilliant week speaking to @Conservatives members across the country.
From Stratford to Southampton, Harrogate to Huntingdon, Bedfordshire to Bury St. Edmunds and beyond, we're getting a great reception.
The two candidates have sparred over their policies and records in several television debates as well as a dozen hustings in front of members — the last of which will be held in London Wednesday evening.
But with surveys showing Truss leading by more than 30 points, the contest seems effectively over.
However, recent polls of the wider electorate show the challenge ahead.
The main opposition Labour party now boasts a double-digit lead over the Conservatives in a deteriorating economic landscape.
The next general election is due by January 2025 at the latest, but could come sooner, with most people expecting it in 2024.
The leadership contest has been dominated by how to respond to Britain’s growing economic woes, with the rival candidates and their camps descending into open political warfare.
Truss has pledged immediate tax cuts and renewed focus on economic growth, while assailing her rival for pushing taxes to record highs and presiding over declining growth.
Sunak has emphasised the need to maintain current taxes — including recent rises — in the short-term, while pledging more targeted support for the most needy during the cost-of-living crisis.
He has argued his finance ministry record during the pandemic shows he can help Britons through the economic woes.
His furlough scheme, which temporarily paid the wages of millions, is credited with staving off mass unemployment.
First elected to parliament in 2015 and a Brexit supporter during the 2016 referendum, Sunak has accused Truss of “fairytale economics” and claimed her tax cuts will worsen inflation.
But analysts say the campaign has shown Truss — first elected an MP in 2010 — possesses superior political experience and skills.
“She was able to communicate effectively,” said polling expert John Curtice, noting Sunak had appeared a “bit brittle.”
Politics professor Tim Bale, of Queen Mary University of London, noted Truss had in some ways defied her own record.
A minister in successive Tory governments for the past decade, who voted to remain in the European Union in 2016, she nonetheless showcased a populist anti-establishment image in the race.
“She’s somehow managed to present herself as more Brexiteer than Rishi Sunak, who actually voted to leave (the EU), which is a remarkable achievement,” said Bale.
Boris Johnson resigned as leader of Britain’s Conservative party on 7 July, after dozens of ministers quit his scandal-hit government…reports Asian Lite News
Liz Truss led Rishi Sunak by 32 points in the latest survey of Tory members by the ConservativeHome website, suggesting she remains on track to win the race to succeed Boris Johnson as prime minister.
Some 60% of the 961 Tory members polled by the influential website said they favored Truss to become the Conservative Party’s new leader, while just 28% backed Sunak, ConservativeHome said on Wednesday. The result is similar to the last ConservativeHome poll of Tory members on Aug. 4, when Truss also enjoyed a 32-point lead.
Truss has enjoyed large leads over Sunak in a succession of polls and surveys since the contest was narrowed down to two candidates last month. With Sunak showing little sign of making inroads, Truss is the hot favorite to become the party’s — and the country’s — next leader. The result is due on Sept. 5, with the winner taking over from Johnson the following day.
ConservativeHome found that just 9% of those surveyed remain undecided. Some 60% said they had already voted, while 40% haven’t. Although surveying Tory members is notoriously difficult, Conservative Home polls have previously produced similar results to YouGov polling.
Boris Johnson resigned as leader of Britain’s Conservative party on 7 July, after dozens of ministers quit his scandal-hit government.
The mass resignations came after accusations made by a senior former civil servant stating that Johnson’s office had given false information about past sexual harassment allegations against lawmaker Christopher Pincher.
In February this year, Johnson had appointed Pincher deputy chief whip, giving him responsibility for the well-being of other Conservative lawmakers
This paved the way for the selection of a new leader of the Tories (Conservative Party) and Britain’s Prime Minister.
Former Chancellor of the Exchequer Rishi Sunak, who was the first one to resign citing ethical grounds and kick-started Johnson’s downfall along with Foreign Secretary Liz Truss, threw their hats in the ring for the chair of British prime minister and leader of the Conservative Party just within few days of Johnson’s resignation.
The Conservative party leadership results are just a few weeks away but it looks like Liz Truss`s victory over Rishi Sunak is imminent. The result of the vote to decide who will replace Boris Johnson as the next British Prime Minister is due on September 5.
Successive polls showed how a significant number of Conservative party members who were polled back Liz Truss against Rishi Sunak.The Opinium research released last week said Liz Truss has gained as many as a 22-point lead over former chancellor Rishi Sunak in the race for becoming the next Prime Minister. Truss received 61 per cent of the vote for the next PM post while Sunak got only 39 per cent, the survey said.
Liz Truss celebrates the suspension of US tariffs. Secretary of State for International Trade Liz Truss in her office inside the Foreign, Commonwealth and Development Office talks with the Acting United States Trade Representative Maria Pagan as they celebrates the suspension of US tariffs on Scottish Whisky. Picture by Andrew Parsons / No 10 Downing Street
Opinium’s detailed questioning also uncovers a striking lack of enthusiasm for either candidate when members are asked whether they would prefer one of them to Johnson to run the party and country…reports Asian Lite News
The prime ministerial race frontrunner, Foreign Secretary Liz Truss, continues to hold on to a commanding 22-point lead over former Chancellor Rishi Sunak in the Conservative Party leadership contest, according to a new survey of Tory members on Sunday.
In an Opinium poll for The Observer’ newspaper of 570 Conservative members with a vote in the election, Truss is on 61 per cent and the British Indian former minister is on 39 per cent. With under three weeks to go before the September 2 deadline for postal and online votes to be cast by the membership to elect a successor to outgoing Prime Minister Boris Johnson, Sunak seems to have closed the gap only slightly in recent days.
From the moment we knew the final two candidates, it has been clear that Truss has had all the momentum, and our latest poll sets out just how large her lead among the party members has become, Chris Curtis of Opinium told the newspaper.
With many members having already returned their ballot papers, it is now very unlikely Truss won’t become Prime Minister in September. It’s clear that Sunak’s biggest problem is trust. While some members respect his economic arguments, this hasn’t been enough to overcome the view among members that he isn’t honest or trustworthy enough for the top job, particularly after he called for Johnson to go, he said.
Opinium’s detailed questioning also uncovers a striking lack of enthusiasm for either candidate when members are asked whether they would prefer one of them to Johnson to run the party and country. When offered the choice of Johnson still being in No. 10 Downing Street, or Truss taking over, around 63 per cent of Tory members polled said they would prefer Johnson to be still in charge against 22 per cent who wanted Truss. On the other side, 68 per cent said they would prefer to still have Johnson than see him replaced by Sunak, who was preferred by just 19 per cent.
The poll also found that almost three in 10 of the Tory electorate (29 per cent) had already voted. Some 47 per cent said they would definitely be voting for the candidate they had opted for. Just 19 per cent said they had yet to make up their mind.
Opinium said that while these findings meant it may still be possible for Sunak to pull off a stunning comeback to enter 10 Downing Street, but to do so he would have to win over almost all the undecideds and convert a sizeable chunk of those not fully behind Truss.
The Foreign Secretary’s support is particularly strong among older Conservative members, while Sunak’s is far higher among younger ones. For Sunak the most cited reason was that he would be better at managing the economy (22 per cent), while 10 per cent said they regarded him as the most competent or intelligent.
A main reason mentioned by people who backed Truss was dislike of Sunak (14 per cent). The same proportion (14 per cent) said the Cabinet minister was more honest and trustworthy, while 10 per cent chose the fact that she had remained loyal to Johnson and not called on him to resign. Around 2 per cent of Tory members cited race or ethnicity as a reason for supporting Truss and not Sunak.
Meanwhile, the bookie’s odds also continue to be firmly in favour of a Truss win at 88 per cent as opposed to 12 per cent for Sunak. Both hopefuls continue to pledge new commitments if elected, with Truss saying she would take on the role of “Minister for the Union” and Sunak promising to introducing legislation to make the UK “energy independent” by 2045 at the latest, as he vowed to ensure there is no repeat of the looming winter crisis.
After voting closes on the evening of September 2, the winner between the two finalists will be declared on September 5 and he or she will take charge as Tory leader and British Prime Minister immediately.
The issue of inflation and how best to curb it has emerged as the main battle line in the race to 10 Downing Street, with both candidates offering different approaches…reports Asian Lite News
The race to elect a new Conservative Party leader, who will take charge as British Prime Minister early next month, heated up on Monday as the two finalists – Rishi Sunak and Liz Truss – clashed over their proposals to tackle the soaring cost-of-living crisis across the country.
The issue of inflation and how best to curb it has emerged as the main battle line in the race to 10 Downing Street, with both candidates offering different approaches. While Truss has pledged immediate tax cuts if elected, Sunak has promised more targeted support for the most vulnerable households and tax cuts further down the line.
A fresh row brewed out over the weekend after Foreign Secretary Liz Truss told ‘The Financial Times’ that her plan to lower taxes rather than offer handouts was more Conservative. This prompted an immediate rebuke from former Chancellor Rishi Sunak that it is “simply wrong to rule out further direct support” for struggling families this winter.
“Families are facing a long, hard winter with rising bills. Yet Liz’s plan to deal with that is to give a big bung to large businesses and the well-off, leaving those who most need help out in the cold,” Sunak writes in ‘The Sun’.
“Worse still, she has said she will not provide direct support payments to those who are feeling the pinch most. We need clear-eyed realism, not starry-eyed boosterism. That means bolder action to protect people from the worst of the winter. I have the right plan and experience to help people through,” he said.
Supporters of Truss hit back to say her remarks over the weekend had been “misinterpreted”.
“What she has, I think, rightly challenged is the wisdom of taking large sums of money out of people’s pockets in tax and then giving some of that back in ever more complicated ways,” said Trade Minister Penny Mordaunt, a supporter of the Foreign Secretary.
“She’s willing to do more to help people but her focus is around doing it in a way that puts more money in people’s pockets, creating a high-growth economy with higher wages, more people in work,” added Northern Ireland Secretary Brandon Lewis, another Truss supporter.
While Truss has pledged a package of tax cuts worth GBP 30 billion, which Sunak has argued would increase inflation and only save lower earners GBP 59 a year. However, both candidates are feeling the heat on the issue as the UK economy is expected to plunge into a year-long recession as inflation goes beyond 13 per cent later this year, according to the Bank of England forecasts from last week.
Former Labour British Prime Minister Gordon Brown, himself an ex-chancellor, warned that the cost-of-living crisis is too serious for things to wait another few weeks until a new Prime Minister is in place.
He is calling for the Cabinet Office Briefing Room A (COBRA) emergency committee to convene in “permanent session” right away and is also calling for Parliament, which is on summer recess, to be recalled as a matter of urgency unless outgoing Prime Minister Boris Johnson and both Tory leadership candidates can agree on an emergency budget in the days to come.
“Even if Boris Johnson has now gone on holiday, his deputies should be negotiating hard to buy new oil and gas supplies from other countries and they should be urgently creating the extra storage capacity that we currently lack,” Brown writes in ‘The Daily Mirror’.
Supporters of the former finance minister in the race are urging Conservative Party members, who will be voting in postal and online ballots during the course of this month, to judge Sunak by his record of supporting families through the COVID pandemic crisis as Chancellor.
Meanwhile, the bookmaker odds continue to hold strongly in favour of Truss, with the bookie odds aggregator Oddschecker showing the Foreign Secretary way ahead at 87 per cent and Sunak at 13 per cent odds of winning.
More than 80 per cent of those who say they will support his rival insist their minds are already made up and they plan to cast their votes for her as soon as possible…reports Asian Lite News
UK Foreign Secretary Liz Truss opened up an astonishing 34-point lead in the latest opinion poll of Conservative members who make up the electorate, suggesting her contender for party leadership and the PM’s post, former Chancellor of the Exchequer, Rishi Sunak has a mountain to climb, media reports said.
Truss and Sunak will face the Tory faithful Wednesday night amid strong signs that the party has already made up its mind who it wants to become its next leader and prime minister, Daily Mail reported.
The survey by YouGov for the Times, UK also pours cold water on the former Chancellor’s hopes of changing their minds, as he prepares for the third hustings in Cardiff.
More than 80 per cent of those who say they will support his rival insist their minds are already made up and they plan to cast their votes for her as soon as possible.
Just 17 per cent say they might still change their mind while 29 per cent of Sunak’s supporters say they might still vote differently, Daily Mail reported.
In another blow, the vote has been hit by a delay after spy chiefs warned that ballots “could be vulnerable to hackers”.
Originally, Conservative party members were going to be given a postal ballot which had a code with it, individual to each voter.
Afterwards, they could then submit their choice by post or online for the first time- and were able to change their decision later in the contest.
But that is no longer possible because of fears that the vote could be manipulated.
Truss, who has for weeks been the favourite to succeed Boris Johnson as Prime Minister, is supported by 60 per cent of Conservative members, Daily Mail reported.
Just 26 per cent said they were backing former chancellor Sunak, who has been launching a policy blitz in a bid to catch up with his rival.
The winner of the party leadership contest will inherit a parliamentary majority and therefore become prime minister…reports Asian Lite News
Former finance minister Rishi Sunak said it was still “early days” in the leadership contest to replace Prime Minister Boris Johnson, a day after an opinion poll showed him trailing rival Liz Truss by 34 points.
The ruling Conservative Party is choosing a new leader after Johnson was forced to announce his resignation when ministers resigned en masse from his government citing a series of scandals and missteps over the last 12 months.
Sunak, whose resignation helped trigger Johnson’s downfall, and Foreign Secretary Truss are the two remaining candidates in the contest. The party’s members will vote by postal ballot over the next few weeks with a winner announced on Sept. 5.
“It’s still early days and I’m looking forward to meeting many more of you in the coming weeks,” Sunak said in a tweet ahead of campaigning among members of the ruling Conservative Party later on Wednesday.
The winner of the party leadership contest will inherit a parliamentary majority and therefore become prime minister.
On Tuesday an opinion poll showed Foreign Secretary Truss held a 34 point lead over Sunak among Conservative Party members, with 86% telling pollster YouGov they had decided how they would vote.
Truss suffered the first major misstep of her campaign on Tuesday when she was forced to backtrack on one of her most striking pledges a day after announcing it following a backlash from fellow Conservatives and opposition parties.
Truss had set out plans to save billions of pounds a year in government spending in a pledge opponents said would require cutting the pay of public sector workers, including nurses and teachers, outside of the wealthy southeast of England.
What a week, and it's only Wednesday!
Straight from the Exeter Hustings I hit the road again meeting members in Totnes, Plympton and North Cornwall.
It's still early days and I'm looking forward to meeting many more of you in the coming weeks.
Sunak has struggled in the race, partly due to his role in Johnson’s resignation and over his record in government.
As finance minister, Sunak implemented tax increases to pay for government support offered during the COVID-19 pandemic and to help Britons subsidise soaring energy bills. That has drawn criticism from many activists in the historically low-tax party.
Sunak has pledged to cut taxes over time to avoid stoking inflation, but Truss has said she would act immediately to lower the tax burden.
Sunak meanwhile has won the support of Damian Green, the veteran Tory MP who served as de facto deputy prime minister under Theresa May, who leads the One Nation group of Conservatives…reports Asian Lite News
Nadhim Zahawi has thrown his weight behind Liz Truss in the Conservative leadership race, as ballots begin to drop on party members’ doorsteps on Monday.
The chancellor praised Truss’s “booster” economic approach while suggesting Rishi Sunak was a “doomster”.
Sunak and Truss take their campaigns to Exeter this evening, where the two rivals will take part in the second hustings of the contest.
Truss is now seen as the clear frontrunner in the race to replace Boris Johnson, and has also picked up the backing of defence secretary Ben Wallace and former leadership contender Tom Tugendhat.
Sunak meanwhile has won the support of Damian Green, the veteran Tory MP who served as de facto deputy prime minister under Theresa May, who leads the One Nation group of Conservatives.
In declaring his support for Truss, Zahawi wrote in The Daily Telegraph: “Liz understands that the status quo isn’t an option in times of crisis. We need a ‘booster’ attitude to the economy, not a ‘doomster’ one, in order to address cost-of-living woes and the challenges on the world stage. Liz will overturn the stale economic orthodoxy and run our economy in a Conservative way.”
When Sunak quit as chancellor Zahawi was handed the job by Johnson. A day after his appointment Zahawi told the prime minister he should resign.
Asked on BBC Radio 4′s Today programme about Zahawi giving his support to Truss, Sunak laughed and said: “As you can tell I find it it rather amusing.”
And he rejected the suggestion Truss had more support from Conservatives in Westminster.
“I did end the parliamentary phase with comfortably the largest number of MPs backing me,” he said.
In total, ten cabinet ministers have decided to back Truss for the leadership while eight are supporting Sunak.
Nadine Dorries, Suella Braverman, Simon Clarke, Jacob Rees-Mogg, Anne-Marie Trevelyan, Kwasi Kwarteng, James Cleverly, Therese Coffey, Wallace and Zahawi are supporting the foreign secretary.
Dominic Raab, Stephen Barclay, Robert Buckland, Grant Shapps, George Eustice, Mark Spencer, Shailesh Vara and Michael Ellis are backing Sunak.
In a last-ditch effort to win over the party faithful before they start voting, Sunak attempted to shake off his image as the tax-hiking former chancellor by promising the “biggest income tax cut since Margaret Thatcher’s government”.
He vowed to slash the basic rate from 20% to 16% within seven years if he becomes prime minister, in a move immediately branded as a “flip-flop” by allies of Truss after weeks of labelling her plans for sweeping tax cuts as “comforting fairy tales”.
Conservative members have the chance to vote as early as this week and have until the beginning of September to cast their ballot, with the winner announced on September 5.
