Rishi Sunak formally took up the office of prime minister at around midday on Tuesday 25 October, after an effective coronation by Conservative party MPs. The former chancellor’s rise follows rapidly on from Liz Truss’s resignation on Thursday 20 October.
Mr Sunak was the only candidate as the deadline for nominations closed at 2pm on Monday 2 October, following the withdrawal of Penny Mordaunt and Boris Johnson.
In his first comments as prime minister, Mr Sunak acknowledged that the government under Liz Truss had made a number of mistakes which he now had a duty to fix. Economic stability and confidence would be placed at the heart of his government, he said, and one of his first actions was to reappoint Jeremy Hunt as chancellor. Although tough economic decisions are to follow, Mr Sunak pledged to govern with compassion and unite the country ‘not with words but with action’.
The prime minister reconfirmed his commitment to delivering promises in the Conservative party 2019 election manifesto, including protection of the environment, levelling up (with the return of Michael Gove) and building an economy in which businesses are able to ‘invest and create jobs’.
Sunak also acknowledged that there is work to be done to restore trust in government ‘after all that has happened’.
Opposition parties across the UK have continued their calls for a general election, citing the uncertainty in recent weeks following the fallout from the mini-Budget.
Alongside Chancellor Hunt, other key government appointments include the following:
Dominic Raab rejoins the front bench as deputy PM and justice secretary (positions he held under Prime Minister Johnson);
Suella Braverman returns as home secretary;
Grant Shapps becomes business secretary;
Mel Stride becomes work and pensions secretary; and
John Glen becomes chief secretary to the Treasury (having been economic secretary until 6 July 2022).
Commenting on the news of Hunt’s reappointment as chancellor, Charlotte Sallabank, partner at Katten UK, noted: ‘The measures that Jeremy Hunt announced, where he reversed most of the September “mini-budget”, are in line with the fiscal policy that Rishi Sunak himself adopted when he was chancellor. It is unlikely that Rishi Sunak and Jeremy Hunt will announce any tax cuts, although they may set a date for the reduction of income tax basic rate to 19% – Sunak had set it to reduce in 2024 and again further in potentially 2029.
‘Furthermore, if the new PM and chancellor are able to bring stability to the market, this should allow the Treasury and HMRC to concentrate on some of the other tax issues that were in focus before Liz Truss became PM and whilst Rishi was chancellor (e.g. re-domiciliation of companies, changes to the investment manager exemption to encompass crypto assets and various other consultations that have lost airtime in all the upheavals),’ Sallabank added.
As Tax Journal went to press, it was announced that the medium-term fiscal plan that was scheduled for Monday 31 October is to be cancelled and replaced by a full Autumn Statement on Thursday 17 November 2022. The statement will be accompanied by forecasts from the Office for Budget Responsibility.
Rishi Sunak formally took up the office of prime minister at around midday on Tuesday 25 October, after an effective coronation by Conservative party MPs. The former chancellor’s rise follows rapidly on from Liz Truss’s resignation on Thursday 20 October.
Mr Sunak was the only candidate as the deadline for nominations closed at 2pm on Monday 2 October, following the withdrawal of Penny Mordaunt and Boris Johnson.
In his first comments as prime minister, Mr Sunak acknowledged that the government under Liz Truss had made a number of mistakes which he now had a duty to fix. Economic stability and confidence would be placed at the heart of his government, he said, and one of his first actions was to reappoint Jeremy Hunt as chancellor. Although tough economic decisions are to follow, Mr Sunak pledged to govern with compassion and unite the country ‘not with words but with action’.
The prime minister reconfirmed his commitment to delivering promises in the Conservative party 2019 election manifesto, including protection of the environment, levelling up (with the return of Michael Gove) and building an economy in which businesses are able to ‘invest and create jobs’.
Sunak also acknowledged that there is work to be done to restore trust in government ‘after all that has happened’.
Opposition parties across the UK have continued their calls for a general election, citing the uncertainty in recent weeks following the fallout from the mini-Budget.
Alongside Chancellor Hunt, other key government appointments include the following:
Dominic Raab rejoins the front bench as deputy PM and justice secretary (positions he held under Prime Minister Johnson);
Suella Braverman returns as home secretary;
Grant Shapps becomes business secretary;
Mel Stride becomes work and pensions secretary; and
John Glen becomes chief secretary to the Treasury (having been economic secretary until 6 July 2022).
Commenting on the news of Hunt’s reappointment as chancellor, Charlotte Sallabank, partner at Katten UK, noted: ‘The measures that Jeremy Hunt announced, where he reversed most of the September “mini-budget”, are in line with the fiscal policy that Rishi Sunak himself adopted when he was chancellor. It is unlikely that Rishi Sunak and Jeremy Hunt will announce any tax cuts, although they may set a date for the reduction of income tax basic rate to 19% – Sunak had set it to reduce in 2024 and again further in potentially 2029.
‘Furthermore, if the new PM and chancellor are able to bring stability to the market, this should allow the Treasury and HMRC to concentrate on some of the other tax issues that were in focus before Liz Truss became PM and whilst Rishi was chancellor (e.g. re-domiciliation of companies, changes to the investment manager exemption to encompass crypto assets and various other consultations that have lost airtime in all the upheavals),’ Sallabank added.
As Tax Journal went to press, it was announced that the medium-term fiscal plan that was scheduled for Monday 31 October is to be cancelled and replaced by a full Autumn Statement on Thursday 17 November 2022. The statement will be accompanied by forecasts from the Office for Budget Responsibility.
