Sunak to Retain Chancellor Hunt... Aiming to Stabilize Financial Markets

Rishi Sunak, the newly appointed Prime Minister of the United Kingdom
[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bloomberg News reported on the 24th (local time) that Rishi Sunak, the newly appointed UK Prime Minister, is likely to retain current Chancellor of the Exchequer Jeremy Hunt.

A source close to Prime Minister Sunak said that Sunak may keep Chancellor Hunt in office to maintain financial market stability. Given that the Treasury is scheduled to announce its fiscal plan on the 31st, replacing the head could cause turmoil in the financial markets, which adds weight to the possibility of Hunt’s retention.

The source also said that Sunak promised fellow lawmakers that he would form a cabinet composed of capable individuals. Since Sunak emphasizes unity, it is expected that his cabinet will include people with diverse political orientations.

Sunak’s close aides told The Telegraph that Sunak would not repeat the mistake of former Prime Minister Liz Truss, who filled her cabinet solely with her own supporters.

With speculation about Chancellor Hunt’s retention, Mel Stride and Steve Barclay, long-time supporters of Sunak and mentioned as candidates for Chancellor, are expected to take on other positions. Stride is likely to become Chief Secretary to the Treasury, and Barclay is expected to return as Health Secretary.

Penny Mordaunt, who initially ran for Conservative Party leader and Prime Minister but withdrew at the last minute to endorse Sunak, is reportedly hoping for the Foreign Secretary position. There is also speculation that current Foreign Secretary James Cleverly may be retained. Although Cleverly supported former Prime Minister Boris Johnson, Sunak may keep him in office regardless of his support, judging him to be capable.

The Times noted that although it is highly likely that Truss would refuse, bringing her back as Foreign Secretary would send a very strong message of unity. Truss was Foreign Secretary before becoming Prime Minister.

For the Defense Secretary position, it is expected that someone more accepting of austerity measures may be chosen over Ben Wallace, who has strongly advocated raising defense spending to 3% of GDP.

Wallace expressed full support for Sunak on Twitter but is originally a Johnson supporter. Some speculate that if Sunak opposes the 3% defense spending increase, Wallace might resign; however, Wallace’s camp has stated that he will remain in office even if the 3% increase is rejected.

Suella Braverman, former Home Secretary and the first major minister to resign from Truss’s cabinet before supporting Sunak, is reportedly seeking to return to office. Grant Shapps, former Transport Secretary, was nominated on the 19th as Braverman’s successor and is reportedly hoping to remain Home Secretary.

Sajid Javid, who resigned as Chancellor in July after Sunak stepped down and briefly served as Chancellor before stepping down again when Truss’s cabinet was formed, is said to be willing to return only if offered a senior job.

Kemi Badenoch, Minister for International Trade and a leading figure of the Conservative Party’s right wing and a Sunak supporter, is also attracting attention as she may be given a higher position. Although Truss appointed her as International Trade Minister, Badenoch is reportedly dissatisfied with the role.

This content was produced with the assistance of AI translation services.