Can Rishi Sunak tame the UK economy? - Business Extra

The energy and cost-of-living crises will challenge the new prime minister's plan to soothe troubled markets

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New British Prime Minister Rishi Sunak must tackle what he has called a “profound economic crisis”. He vowed the priority of the government would be to “reduce inflation", describing it as “indeed the enemy”.

Under Mr Sunak's predecessor Liz Truss, the UK government attempted to prioritise populist measures such as tax cuts without reducing spending. This triggered a violent reaction from the bond market. It resulted in Ms Truss stepping down and a third leader for the country this year.

Investors remain nervous about the shape of UK fiscal and economic policy. Will Mr Sunak settle these concerns down and put the country back on a more steady footing, facing down both the energy and cost-of-living crises? Or will circumstances prove beyond his control?

London deputy bureau chief Paul Carey discusses the uncertain outlook with host Mustafa Alrawi.

In this episode:

Has the UK political scene stabilised now? (1m 10s)

UK budget statement delayed (4m)

Challenges facing Rishi Sunak and lowering expectations (6m 18s)

UK’s cost of living problem (7m 29s)

Is the UK public tiring of politicians and politics? (9m 21s)

What’s the outlook for the UK’s economic future? (11m 13s)

More:

Why the UK is facing an energy price crisis

Liz Truss's downfall and the problem with markets dictating government policy

Pound sterling rallies as markets react to Liz Truss's resignation

Updated: October 27, 2022, 6:49 AM