In the midst of severe economic uncertainty, Mr. Sunak wins
October 25, 2022
Truss’ catastrophic economic policy, characterized by the pound plummeting to a record low value (against the dollar), was followed by her resignation on October 20, 2022. Since, 42-year-old Mr. Sunak has made history as both the first person of color and first Hindu to be chosen as Britain’s prime minister. His victory brought temporary ease to British markets, but Britain’s economic future remains quite dim. On October 31, the U.K. Treasury is expected to define their plan in meeting a 40 billion pound deficit in the public finances. Doing so will require spending cuts and/or tax increases, exacerbating discontent for an already incredibly unpopular Conservative Party—“A recent poll by Opinium has 23% of Britons voting for the Conservatives versus 50% for Labour. Pollsters think the scale of that deficit…is potentially insurmountable” (Colchester and Hannon). Accompanying his unavoidable contractionary fiscal policy is Britain’s severe inflation (a stark 10.1%), rising energy costs (due to the Russo-Ukrainian War), and indications of a recession in the near-future. As Sunak responds to the extensive economic conditions plaguing Britain, it is important to note that the U.K economy has yet to return to its size previous to the pandemic. Ultimately, while Sunak’s scheduled appointment to Prime Minister is certainly cause for hope, a variety of obstacles line his path in leading Britain to economic recovery.