New UK Prime Minister Rishi Sunak warned of spending cuts as he said the country was in an “economic crisis” and pledged to correct the financial “mistakes” made during the disastrous 45-day reign of Liz Truss.
In a speech outside Downing Street after being formally appointed by KIng Charles, Sunak warned there would be “difficult decisions to come” as the nation faces up to a £40bn hole in its finances.
His first task is to appoint a new Cabinet, with his task made easier with the departure of unpopular Business Secretary Jacob Rees-Mogg who was widely tipped for the axe.
Sunak moved to distance himself from the calamitous Truss, whose neoliberal economic policy and plans for unfunded tax cuts hammered financial markets, and the discredited Boris Johnson, thrown out by his own party for mismanagement and scandal.
Sunak said his government would show “integrity, professionalism and accountability”, a stark change in comparison with the previous Tory administrations. While praising Truss, he said “mistakes were made”.
“I will place economic stability and confidence at the heart of this government’s agenda. This will mean difficult decisions to come,” he said.
“The government I lead will not leave the next generation – your children and grandchildren – with a debt to settle that we were too weak to pay ourselves.”
Earlier, Truss delivered a tin-eared and unapologetic resignation speech, defiantly standing by her mini-budget which triggered her humiliating departure after a tenure that lasted less than half as long as her leadership campaign.
Reporting by Frank Prenesti for Sharecast.com
