Wednesday, June 7, 2023
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UK political turmoil: what you need to know

LONDON (Reuters) – Boris Johnson is struggling to garner enough support for a shock return as British prime minister after prominent figures from the Conservative party’s right wing gathered around Rishi Sunak, who was once accused of betraying him.

Here are the latest events, comments and background:


Johnson and his former finance minister Sunak are leading A contender to become the next prime minister after Liz Truss resigned after six weeks in office.

Sunak’s resignation in July sparked Johnson’s ouster, vowing to respond to the country’s “serious economic crisis” with “integrity, professionalism and responsibility”.

Truss has been dragged down by an economic plan that roiled financial markets, pushed up the cost of living for voters and angered much of her party.

CANDIDATE Support from Conservative lawmakers is being sought to fast-track party leader and prime minister cked race.

Johnson, who was ousted by lawmakers in July but remains popular with party members, aims to In an extraordinary political comeback.

Former Defense Minister Penny Mordaunt also entered the race to become the country’s fifth Prime Minister in six years.

Leader elections will be completed on Friday to replace Truss, the shortest-serving prime minister in British history. The first results will be announced on Monday GMT 1700.

The national election doesn’t need to be held for another two years, but the Opposition says voters should now have a say. Labour leader Keir Starmer says the battle at the top of the Conservative Party is a “ridiculous, chaotic circus”

Labour leads the government by more than 30 points in some opinion polls.

The economy

UK shoppers slashed spending in September while public borrowing rose more than expected, underscoring the challenges facing new finance minister Jeremy Hunt and his successor Truss as prime minister.

Hunter reiterated on Friday that the government will take “all necessary measures” to reduce debt over the medium term.


Economically driven Sterling fell on Friday, dragged down by political uncertainty and political uncertainty. Analysts believe it will take some time for the market to fully shake off the political risk premium that has built up in recent weeks.

What is behind the crisis?

UK financial markets plunged into turmoil in September after then-new Finance Minister Kwasi Kwarteng announced billions of pounds of unfunded tax cuts 23 .

The Bank of England was forced into emergency bond purchases to stem a massive sell-off in the UK’s $2.3 trillion government bond market, which threatens to wreak havoc on the pensions industry and increase recession risk.

Kwarteng’s successor, Jeremy Hunt, on Monday scrapped “almost all” economic plans and scaled back Truss’s massive energy support package announced in September in a historic U-turn in an attempt to recover Investor confidence.

Bank of England intervention highlights a growing part of Britain’s pensions sector – debt-driven investment.

Chart: UK market turmoil (



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