Rishi Sunak Will Not Be in Liz Truss’s New Cabinet: Report

Within hours of Truss being named winner of the contest, Priti Patel said she would step down as home secretary.

London: Liz Truss, who is set to take over as Britain’s Prime Minister, will not offer former finance minister and her leadership contest rival Rishi Sunak a role in her cabinet, the Guardian reported on Monday.

Sunak said earlier in the day that he would not accept a ministerial job from Truss, reiterating a suggestion he has made during the Conservative Party leadership campaign that kicked off in July when Johnson was forced to step down from the role.

“It is just not something I’m thinking about,” Sunak told the BBC when asked if he would accept a ministerial job from Truss, who had a smaller margin of victory in the contest than any of her predecessors.

The Guardian report, which cited sources close to Truss, also said that Thérèse Coffey, the current work and pensions minister, was expected to become the country’s Health Secretary in Truss’s new government.

Within hours of Truss being named winner of the contest, Priti Patel said she would step down as home secretary. A lawmaker belonging to the Conservative Party told Reuters that Suella Braverman, currently the government’s attorney-general, was likely to be promoted to Patel’s role.

(Reuters)

As Forecast Lately, Liz Truss Beats Rishi Sunak To Be Britain’s PM – But Not by Huge Majority

The former chancellor was more specific in providing economic solutions but his privileged background and his weak political team were handicaps.

Rishi Sunak has been beaten – more narrowly than many had expected – by Liz Truss to become leader of Britain’s Conservative Party and the country’s fourth prime minister in six years. 

Truss won 81,326 votes against Sunak’s 60,399, a majority of approximately 21,000, which is less of a landslide than recent media commentary has suggested. It means that she has less authority over MPs, who originally backed Sunak, and less support among party members than she would have wished. 

The fact that only about 11,000 voters need to have switched sides to make Sunak the winner reflects the result of five televised “hustings” where he clearly won over the audiences with his willingness and ability to give clear-cut answers. Truss kept her replies vague and did not develop her ideas. 

It is fair to conclude that if more party members had known more about Sunak when they voted over the past month, the result might have been different.

It looks likely that there will be an historic mix of ethnic backgrounds in Truss’s cabinet. If media forecasts are correct, the three top Cabinet posts will go to Kwasi Kwarteng, whose parents come from Ghana, as chancellor of the exchequer; James Cleverly with a British father and Sierra Leone mother as foreign secretary; and Suella Braverman with Kenyan Indian and Mauritian parents as home secretary. 

Also probably included will be Nadhim Zahawi, the current (temporary) Iraqi-origin chancellor, who may go back to his old role as health secretary. There might also be a job for Pakistan-origin Sajid Javed, one-time chancellor and later health secretary, who triggered Boris Johnson’s exit as prime minister when he resigned in July, quickly followed by Sunak. 

Rishi Sunak and Liz Truss stand on the stage before taking part in the BBC Conservative party leadership debate at Victoria Hall in Hanley, Stoke-on-Trent, Britain, July 25, 2022. Photo: Jacob King/Pool via Reuters

The expected ethnic aspect at the top of the Cabinet reflects the growing social mix of British society. It far exceeds the 15% of the UK population who come from a minority ethnic background, while in parliament there are currently 65 MPs from those backgrounds, just 10% of the total (an increase of 25% over the 2017 general election).  

There will always be suggestions that Sunak lost because of his Indian origins, and there may be something in that because Conservative Party traditionalist members are almost certainly less likely to want a non-white person as prime minister than the general electorate. 

The main reason however is that Truss’s unwavering true blue tax-cutting rhetoric, and developing a right-wing image as an experienced politician, appealed in the tortuous month-long election campaign to more grassroots party members.

Sunak appeared as a super-efficient well-groomed policy manager. He knew exactly how to run the country during an economic crisis and had an answer to every contingency, something Truss carefully avoided. He shunned quick popular tax cuts.

It all seemed rather unreal because, while Britain faced news of escalating crises with rocketing energy prices and inflation, plus a drought and the prospect of water shortages, the two contestants fought over their primary differences – Truss’s tax cuts that in reality will worsen inflation and scarcely help the poorest and most destitute, while Sunak condemned that as lunacy and proposed interventionist policies that Truss will now be forced to adopt.

Meanwhile, the government became sterile and Johnson enjoyed his final weeks in power with jaunts that included flying in a jet fighter, joining a dawn police raid, and announcing distant nuclear power plans. He even suggested people should buy a new £20 efficient kitchen kettle to save £10 a year on their electricity bills. That was his solution for families facing rocketing energy bills that have just risen from an average of around £2,000 a year to over £3,400 and are then forecast to nearly double to more than £6,000 in six months’ time.

Sunak’s defeat compares with the voting among Conservative MPs in July where he led Truss with 137 votes to her 113. Those figures probably reflected Truss’s lack of popularity among MPs, many of whom will have welcomed Sunak’s role in triggering the 50 or so Cabinet resignations that led to Boris Johnson’s downfall. 

The grassroots party members knew him less well and only gradually realised his potential. Nearly half of them wish Johnson was still prime minister according to opinion polls, so will have resented Sunak’s role. At the start of the campaign, his position was undermined by heavy criticism from Truss’s supporters for being ‘disloyal’ to Johnson – he replied that policy and other differences became too great for him to remain in the cabinet.

Then there was the issue of his immense family wealth totalling some £730m, mainly stemming from his wife Akshata – daughter of Narayana Murthy, co-founder of Infosys, one of India’s three leading IT companies. Akshata, who was little known before the campaign started, had retained non-domicile status and used it to escape some £20 million in taxes to the UK. During the campaign, however, she emerged as a visible and enthusiastic supporter.

Truss had traditional Conservative support

Sunak also had a much weaker political and policy team around him than Truss, who managed to garner traditional Conservative support, though that seemed less evident in the more prosperous south of the country than in the north. She quite quickly gained personal confidence, keeping the debate focussed on her popular tax cuts and rejecting interventionist policies that she is now likely to announce.

She traded heavily on her apparently poor northern childhood roots in order to distinguish herself both from Sunak’s childhood in Hampshire, a well-off county in the south, and from his immense wealth. In fact, they both come from professional middle-class families – Truss’s father was a mathematics professor at Leeds University and her mother was a nurse and teacher, while Sunak’s East African Indian-origin father was a doctor and mother a pharmacist.

Truss now faces a series of crises that need immediate attention. They will test her reputation for abrasiveness and whether she is uncharacteristically willing to consult and be flexible. 

On the economy, there is double-digit inflation and a cost of living crisis with public finances heavily stretched, rising debt and a prospect of a long recession. That worsened this morning with gas prices rising sharply after Russia banned supplies to Europe.

Foreign policy issues include Ukraine, where Johnson – backed by Truss as foreign secretary – led the toughest response to the Russian invasion, and the West’s simmering confrontation with China. Unresolved problems stemming from Brexit are led by a confrontation with the European Union over trade barriers that threaten stability in Northern Ireland, and there is the question of Scotland’s independence that would cripple the United Kingdom. On all of these issues, Truss has till now struck confrontational stances that would not ease the crises.

Boris Johnson looks on during a visit with members of the Thames Valley Police, at Milton Keynes Police Station in Milton Keynes, Britain, August 31, 2022. Photo: Reuters/Andrew Boyers/Pool

A rash of trade union strikes

But the subject that scarcely figured in the leadership election debates is serious labour unrest that looks like leading to the worst rash of trade union strikes since the 1970s. The railways are being hit with a series of crippling one-day stoppages that have also hit bus services and the country’s largest port. Other groups threatening action include teachers, lawyers, ambulance drivers, refuse collectors, and telecommunication and airport workers.

Both Truss and Sunak have aired confrontational policies to restrict public service workers’ freedom to strike. If Truss stays on that track, without introducing attempts at labour conciliation that have been absent under Johnson, she could face an early showdown with the unions this winter. Co-ordinated action is due to be debated at the annual Trades Union Congress next week.

Meanwhile, Johnson still harbours hopes of returning as prime minister. There are even reports that MPs who support him are thinking of triggering a new leadership crisis before the end of the year.

Sunak of course must be regretting today that it is Truss who will be visiting the Queen on Tuesday to be invited to form a new government. But, given the scale of the immediate crises, he can console himself with the thought that the prime minister’s post might be up for grabs again in two years’ time.

Liz Truss Named as Britain’s Next Prime Minister

After weeks of an often bad-tempered and divisive leadership contest, Truss came out on top in a vote of Conservative Party members. She received 81,326 votes to Rishi Sunak’s 60,399.

London: Liz Truss was named as Britain’s next prime minister on Monday, winning a leadership race for the governing Conservative party at a time when the country faces a cost of living crisis, industrial unrest and a recession.

After weeks of an often bad-tempered and divisive leadership contest that saw the foreign minister face off against former finance minister Rishi Sunak, Truss came out on top in a vote of Conservative Party members, winning by 81,326 votes to 60,399.

“We need to show that we will deliver over the next two years. I will deliver a bold plan to cut taxes and grow our economy,” Truss said after the result was announced.

“I will deliver on the energy crisis, dealing with people’s energy bills, but also dealing with the long-term issues we have on energy supply.”

The announcement triggers the start of a handover from Boris Johnson, who was forced to announce his resignation in July after months of scandal saw support for his administration drain away.

He will travel to Scotland to meet Queen Elizabeth on Tuesday to officially tender his resignation. Truss will follow him and be asked to form a government by the monarch.

Long the front-runner in the race to replace Johnson, Truss will become the Conservatives’ fourth prime minister since a 2015 election. Over that period the country has been buffeted from crisis to crisis, and now faces what is forecast to be a long recession triggered by sky-rocketing inflation which hit 10.1% in July.

Foreign minister under Boris Johnson, Truss, 47, has promised to act quickly to tackle Britain’s cost of living crisis, saying that within a week she will come up with a plan to tackle rising energy bills and securing future fuel supplies.

Truss has signalled during her leadership campaign she would challenge convention by scrapping tax increases and cutting other levies in a move some economists say would fuel inflation.

That, plus a pledge to review the remit of the Bank of England while protecting its independence, has prompted some investors to dump the pound and government bonds.

Kwasi Kwarteng, widely tipped to be her finance minister, sought to calm markets on Monday, by saying in an article in the Financial Times newspaper that under Truss there would need to be “some fiscal loosening” but that her administration would act in “a fiscally responsible way”.

Truss faces a long, costly and difficult to-do list, which opposition lawmakers say is the result of 12 years of poor Conservative government. Several have called for an early election – something Truss has said she will not allow.

Veteran Conservative lawmaker David Davis described the challenges she would take on as prime minister as “probably the second most difficult brief of post-war prime ministers” after Conservative Margaret Thatcher in 1979.

“I actually don’t think any of the candidates, not one of them going through it, really knows quite how big this is going to be,” he said, adding that costs could run into tens of billions of pounds.

Truss has said she will appoint a strong cabinet, dispensing with what one source close to her called a “presidential-style” of governing, and she will have to work hard to win over some lawmakers in her party who had backed Sunak in the race.

The Institute for Government think-tank said Truss would have a weaker starting point than any of her predecessors, because she was not the most popular choice among her party’s lawmakers.

First, she will turn to the urgent issue of surging energy prices. Average annual household utility bills are set to jump by 80% in October to 3,549 pounds, before an expected rise to 6,000 pounds in 2023, decimating personal finances.

Britain has lagged other major European countries in its offer of support for consumer energy bills, which opposition lawmakers blame on a “zombie” government unable to act while the Conservatives ran their leadership contest.

In May, the government set out a 15 billion-pound support package to help households with energy bills as part of its 37 billion-pound cost-of-living support scheme.

Italy has budgeted over 52 billion euros ($51.75 billion) so far this year to help its people. In France, increases in electricity bills are capped at 4% and Germany said on Sunday it would spend at least 65 billion euros shielding consumers and businesses from rising inflation.