Liz Truss Congratulates Incoming UK PM Rishi Sunak, Assures Full Support in Addressing Massive Economic, Political Challenges

Rishi Sunak is positioned to become the first British Asian prime minister after his last opponent in the Tory leadership race backed out. The former chancellor has the support of around 200 Conservative MPs just in time for Monday's nomination deadline. After failing to win over enough lawmakers, Commons Leader Penny Mordaunt withdrew, according to BBC.

This implies that Sunak will replace Liz Truss as Prime Minister and become the youngest leader in that position in over two centuries. Now that the conclusion of the Tory leadership battle is known, Sunak, a 42-year-old practicing Hindu, is poised to enter office in the coming days.

After Sir Graham Brady, head of the 1922 committee of backbench Conservatives, revealed the outcome, Sunak spoke to the party's parliamentary members. In a private address, MP Simon Hoare reported that Sunak warned them of a difficult time ahead and dismissed the possibility of an early general election.

The King will choose Rishi Sunak to replace Truss, who quit 45 days after she took office because of a myriad of troubles.

Following losing to Liz Truss in the most recent leadership election during the summer, Rishi Sunak has made a quick political recovery, which is effectively capped by his installation as the head of the Conservative Party.

Liz Truss Congratulates Former Rival Rishi Sunak

Less than two months after Liz Truss was beaten in the first Conservative leadership challenge of the year, the outgoing prime minister congratulated Rishi Sunak on becoming the next PM of Britain.

On Twitter, Truss declared her "full support" for Sunak.

In his first address to the Conservative Party as its leader, Rishi Sunak expressed his gratitude for the members' confidence in him, calling himself "humbled and honored" to have their backing, according to CNN.

The incoming UK prime minister paid tribute to the outgoing PM Liz Truss in guiding the party with "dignity and grace" amid the significant challenges.

Sunak added that it is the "greatest privilege" of his life to serve the party he loves and to "give back" to the country he "owes so much to."

Sunak To Face Daunting Challenges

As the UK sinks into a recession, pulled down by the increasing cost of oil and food, the multi-millionaire former hedge fund CEO will be expected to begin significant expenditure cutbacks to recover Britain's economic credibility, as per a report from Reuters.

After a time of unprecedented political and economic crisis, Rishi Sunak will confront the monumental challenge of portraying stability. But he also has the onerous responsibility of leading the country through a recession.

At one point on Monday, the pound was worth more than the dollar due to Sunak's challenger Boris Johnson stepping down, but it has since lost ground and is now worth less than $1.128. UK benchmark 10-year bond yields dropped to 3.82% as prices rose.

For much of the summer, Sunak campaigned for this position on a platform of assisting families in dealing with the growing cost of living, a factor that is prompting many to cut down on discretionary expenditure. When asked about tax cuts, he suggested they would be implemented until inflationary pressures subsided.

However, since then, the economic picture has worsened dramatically, in no little part due to the market turbulence caused by Truss's now-defunct proposal to cut taxes as quickly as possible and increase government borrowing.

A widely followed economic indicator hit a 21-month low in October. If these numbers hold, it will be conclusive evidence that the UK is indeed experiencing a recession, according to the data's keeper, S&P Global.

Rishi Sunak acknowledged that the UK faces a "profound economic challenge." Hence he called for "stability and unity," which goes with a promise to make his "utmost priority" to unite the party and the nation.

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United kingdom, Politics