As widely predicted by the pollsters, Liz Truss has beaten Rishi Sunak to become the new leader of the Conservative party. This also sets her up to take over as Prime Minister from Boris Johnson, loyalty to whom was a key factor why the Tories went with her rather than Sunak, perceived as having stabbed Johnson in the back.
Following in Johnson’s footsteps, it is expected that the Ukrainian capital will be one of Truss’s first foreign ports of call as PM. But even as she pens her support package for Kyiv the impact of events there on prices back home will be her key challenge. The UK energy regulator has cited the war and reduction in supplies from Russia to raise its cap on home-energy prices such that these are set to rise by 80% in October. Inflation is already in double digits. Overall, her campaign proposals to tackle what may end up being the worst cost-of-living crisis in generations, has left experts pessimistic.
In India commerce secretary BVR Subrahmanyam has said that the India-UK FTA negotiations are at the last stage, with 19 out of 26 chapters closed, and a Diwali deadline nearing. But whether the deadline given by Johnson will be upheld by Truss is uncertain, as increasing domestic economic turmoil may reset her priorities and even politics.
Also read: All you need to know about UK’s next PM
Truss has modeled herself on Margaret Thatcher, who also came to power in a great Winter of Discontent. In her victory speech today she has pledged a “bold” cut to taxes plus that she will “deliver” on the rising energy bills plus grow the economy. How all these hold together remains to be seen and it certainly won’t be a cakewalk.
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