# Factbox-What is Rishi Sunak’s solution to Britain’s problems? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-24 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Rishi Sunak: Economic and Political Policy Plans Revealed Meta Description: Discover how frontrunner Rishi Sunak's economic policies and strategies may impact Britain's economic and political landscape as he vies for the role URL: https://financedigest.com/factbox-what-is-rishi-sunaks-solution-to-britains-problemshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-24t122141z2lynxmpei9n0f1rtroptp4britain-politics-sunak-policy-1736814985812-compressed.jpg) LONDON (Reuters) – Since entering the contest to be British prime minister, frontrunner Rishi [Sunak](https://www.financedigest.com/britains-prime-minister-sunak-congratulates-erdogan-on-election-win.html) has said little publicly about how he intends to run the country and how he would address multiple economic and political crises. Sunak ran unsuccessfully to be prime minister earlier this year, setting out a full policy platform. Although some of the challenges have changed since then, what does that campaign tell us about how he would govern? ECONOMIC CHALLENGES Britain is facing an [economically toxic combination of recession and rising](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high") interest rates. The [Bank of England is trying to tame double-digit inflation while consumers face rising](https://www.financedigest.com/sterling-rises-as-receding-bank-sector-worries-lift-sentiment.html "Sterling rises as receding bank sector worries lift sentiment") costs and falling real incomes. Britain has to restore its [international financial](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") credibility after outgoing leader Liz Truss’s plan for unfunded tax cuts and a costly energy price guarantee spooked the bond market last month and forced the Bank of England to intervene. To balance a budget shortfall made worse by the [rising borrowing costs that the crisis](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") caused, the next prime minister will most probably have to oversee spending cuts and tax rises. A fiscal statement addressing this is due on Oct. 31. That comes as the government [faces pressure to help vulnerable households through a painful financial](https://www.financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies.html "Disconnected customers are one of the biggest problems facing financial companies") squeeze, with a jump in mortgage costs adding to rising food, heating and fuel prices caused by the war in Ukraine and other global factors. ECONOMIC POLICIES In a statement issued on Sunday announcing his candidacy, Sunak said the country faced a “profound [economic crisis”](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief"). As finance minister between February 2020 and July 2022, he [set Britain](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators") on course to have its biggest tax burden since the 1950s. He also [set out higher](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher") public spending but simultaneously promised more discipline and to cut waste. During the summer leadership campaign he criticised Truss’s tax-cutting agenda, [saying he would instead only cut](https://www.financedigest.com/amazon-ceo-says-job-cuts-to-exceed-18000-roles.html "Amazon CEO says job cuts to exceed 18,000 roles") taxes once inflation had been brought under control. At the time he outlined a [plan to cut income tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") from 20% to 16% by 2029. Sunak has backed the independence of the [Bank of England and stressed the importance of government policy working alongside the central bank to tame inflation](https://www.financedigest.com/be-really-really-careful-on-inflation-bank-of-englands-haskel.html "Be ‘really, really careful’ on inflation – Bank of England’s Haskel"), not exacerbating it. POLITICAL CHALLENGES One of Sunak’s first challenges will be to show he can control a Conservative Party that has a large majority in parliament but is riven with factions that differ on key issues like [Brexit and immigration as well as economic](https://www.financedigest.com/the-politics-economics-and-investment-implications-of-brexit.html "The politics, economics and investment implications of Brexit") management. Higher taxes will be strongly opposed by some in the party; others will oppose [spending cuts](https://www.financedigest.com/uk-maps-out-return-to-higher-foreign-aid-spending-after-covid-cuts.html "UK maps out return to higher foreign aid spending after COVID cuts") in key areas like health and defence. Winning the [leadership contest would be only the first step in uniting a party that has ousted its last two leaders](https://www.financedigest.com/young-leaders-forum-paul-forkans-leadership-thoughts.html "Young Leaders Forum: Paul Forkan’s leadership thoughts") over internal differences, and spent years arguing with itself over how to leave the European Union. Sunak supported Brexit in the 2016 referendum but is still seen by some on the right of the party as too sympathetic to the EU. The key issue of trade with [Northern Ireland](https://www.financedigest.com/exclusive-new-frontiers-collection-launch-to-capitalize-on-northern-ireland-housing-supply-shortfall.html "Exclusive new Frontiers’ Collection launch to capitalize on Northern Ireland housing supply shortfall") is still being negotiated with Brussels. Sunak would face pressure to get a deal that rewrites parts of the initial exit agreement without conceding to a lasting EU [say over trade between Britain](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") and Northern Ireland. He will also face calls to follow through on government promises to control immigration into the country, an issue which many Conservative lawmakers [see as critical to winning over voters at the next](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") election. POLITICAL POLICIES Sunak’s [campaign launch](https://www.financedigest.com/seenthis-launches-emissions-dashboard-to-enable-advertisers-to-analyse-data-reduction-and-emission-savings-on-campaigns.html "SeenThis launches Emissions Dashboard to enable advertisers to analyse data reduction and emission savings on campaigns") statement on Sunday said he wanted to “fix our economy, unite our party and deliver for our country. On Northern Ireland, Sunak previously said he would push on with legislation designed to unilaterally overrule the [Brexit deal while still trying to negotiate](https://www.financedigest.com/small-businesses-can-learn-brexit-negotiations.html "What small businesses can learn from the Brexit negotiations") with the EU. The bill, currently in parliament, has been heavily criticised by the EU. On [Brexit more broadly, in August he promised to “keep Brexit safe” and set up a new governmental unit to review EU regulations that still apply in British](https://www.financedigest.com/what-brexit-mean-for-british-buyers-in-spain.html "WHAT BREXIT MEAN FOR BRITISH BUYERS IN SPAIN") law. In the summer leadership contest, he said he was proud to come from a family of immigrants but he believed [Britain must](https://www.financedigest.com/britain-eu-must-use-caution-in-new-online-rules-un.html "Britain, EU must use caution in new online rules – UN") control its borders, and would retain a plan to deport asylum seekers to Rwanda. He also refused to [rule out Britain’s](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") withdrawal from the European Court of Human Rights. (Reporting by [William James Editing by Elizabeth Piper and Mark Potter)](https://www.financedigest.com/youre-a-woman-harry-brits-back-game-of-thrones-maisie-williams-to-play-potter.html "You’re a woman, Harry! Brits back Game of Thrones’ Maisie Williams to play Potter") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---