Sunak's first job: Fixing a flailing economy

Rishi Sunak, one of the richest men in UK parliament and youngest Prime Minister, has rightly vowed to put the public's need above politics. If his first speech is any indication, it appears that he is clear in his mind that he has a daunting task ahead. He has recognised the growing anger at Britain's political class and the ideological battles that have raged ever since the historic 2016 vote to leave the European Union.

He now must come up with a solid roadmap to steer the country through the economic crisis in the shortest possible time. The greatest challenge before this new leader apart from mounting economic crisis is a deeply divided country. It now remains to be seen if Sunak would be moving away from the policy manifesto of 2019 when the then leader Boris Johnson pledged to invest heavily in the country. If he does so, he may be under pressure to go in for fresh elections.

The path ahead is a rough and tough one. Inflation is more than 10 per cent. Food prices and energy tariffs have skyrocketed. Incomes have shrunk and people are going through a nightmare. The first and foremost task before Sunak is to control inflation and recession.

This apparently would mean that he will need to cut down spending in public finances. Millions are battling as cost of living soared and the options he has are not easy ones. His appointment has certainly helped in calming down the markets but debt interest costs are rising and the outlook for the economy is deteriorating. He will need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions.

Sunak in his first address has made it clear that the need of the hour from his colleagues is to help steer the country through growing or shall we say unstoppable inflation and record energy bills which have resulted in cut back in spending by business and households. He also warned them that if they do not cooperate, they may have to face "existential crisis.' This word of caution assumes importance since the next general election is only two years from now.

He will have to control surging inflation and oversee tax hikes and public spending cuts and bring government debt under control. The country had already witnessed strike over pay and walkouts by railway staff, telecom workers, garbage collectors, lawyers and dockworkers and it may once again erupt and spread if he does not take quick measures to tackle this tricky situation. An air of suspicion and distrust is still being felt, analysts say. They question whether struggling families would relate, or ever vote for a multimillionaire.

The Indian government is also eagerly waiting for things to settle down so that it can resolve issues like bilateral trade with UK. The general feeling is that his Indian origin and he being son-in-law of India, he would have some soft corner for India. They feel that even though he is a British citizen, born and brought up there, it would be easy to iron out the minor irritants that had cropped up during the forty-five days of Truss at helm of affairs. One thing is certain that he has started his arduous journey on a positive and confident note and let us all wish him all the best.