In her winning speech from the Queen Elizabeth II Centre auditorium, the new British Prime Minister Mary Elizabeth Truss said it was one of the longest job interviews in history. But, now as she has won the polls, will the road be easy ahead! The answer is definitely a NO.
Truss is the third woman to ever to occupy the seat after Margaret Thatcher and Teresa May. She is also the youngest woman too, and if we see the similarities between the woman leaders of the UK, all arrived at a time when the country was in deep stress.
As Thatcher (53) became the British PM when the UK was on the brink of financial ruin, for May (59), it was the time when the nation was voting for Brexit. And now Truss (50) arrived after post-COVID pandemic. Not only the energy supply demand is on peak, but the economic inflation too may rise in upcoming winter.
ALSO READ: UK and India in ‘sweet spot’: When PM-elect Liz Truss said this about UK-India ties
Lets see what challenges are waiting for Liz Truss:
Annual inflation: As per the latest stats by Goldman Sachs, the annual inflation is running over 10 per cent and may break a 20 per cent barrier for the first time since 1974. So bring the inflation under control should be the first priority of the new British PM, else the entire economy may collapse.
According to Bank of England, the inflation will jump to 13% as the energy crisis intensifies, while Citigroup estimates inflation in the United Kingdom could peak at 18% in early 2023 and Goldman Sachs opines it may breach 20% if current natural gas prices remains on rise.
Minimise soaring energy bills: Considering the energy expenditure, the bills for households will rise 80% to an average of £3,549 ($4,106) a year from October, says CNN. Few analysts even assume that the energy bills may breach £5,000 ($5,785) in January and jump above £6,000 in April ($6,942).
So, providing the energy to every household adequately and at an affordable rate will be a challenge for Liz Truss.
Diminishing pound value: The pound value which sometime ago crossed ₹95 in Indian currency, is now hovering around ₹91 and has been on the decline mode since past few weeks. It will be a challenge for the new government to make pound a leading currency in the global market.
ALSO READ: Liz Truss: An heir to Margaret Thatcher intent on shaking up Britain
Jobs: Coming to this aspect, the Office for National Statistics say currently around 3,17,000 fewer EU nationals were living in the United Kingdom in 2021 than in 2019. Since the country voted to leave the European Union, workers to fill open roles has been a particular challenge in the United Kingdom.
The Brexit has also affected trade with its partners for the UK and in the long run both exports and imports will be about 15% lower, projects the Office for Budget Responsibility.
Foreign policy: Though Truss has served as the Secretary of State for Foreign, Commonwealth and Development Affairs since 2021, the one aspect she will have to give extra focus is towards maintaining its foreign policies.
Considering her previous quotes on Russia and China, her take on maintaining their trust will be an important factor. However, the closeness with India may help in maintaining the trade flow.
As the International Trade Secretary, Liz Truss had signed off on the India-UK Enhanced Trade Partnership (ETP) for the Boris Johnson-led government in May 2021. She had also visited India and held virtual talks with Piyush Goyal and described India as a “big, major opportunity”.
But, just relying on India may not suffice to bring the trade into a healthy condition. So, she will have to move a step ahead and think out of the box.
Download The Mint News App to get Daily Market Updates.
More
Less
For all the latest world News Click Here
