The invisible prime minister with the dullness dividend: Why Sunak’s keeping a low profile

Published

2 years ago

December 10, 2022

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He’s done it! It was a low bar to jump over but at least Rishi Sunak has lasted longer as prime minister than Liz Truss.

The nation can be reassured that there will not be a fourth prime minister this year, or even a general election before Christmas, as Boris Johnson subjected the country to in 2019.

This week Sunak passed the new shortest record set by Truss by serving in Number 10 for more than 44 days without resigning.

After the political turmoil brought on by two “disrupter” prime ministers, the public seems pleased by the period of calm which the diligent Sunak has brought with him. In opinion polls he is personally much more popular than his party and about on a par with the leader of the opposition, although Sir Keir Starmer’s Labour is way ahead of the Conservatives.

The people who seem least content, least respectful, and least inclined to give the new prime minister a break are on his own side. He is finding it next to impossible to please the country and the Conservatives at the same time.

Faced with these difficulties Sunak has opted to keep a low profile. Beyond a list of unmissable prime ministerial engagements at home and abroad, he has scarcely been seen in public or on social media. Tory voices have joined his opponents attacking him as an “invisible prime minister”.

Sunak’s ‘dullness dividend’

The circumstances in which he came to power meant that Sunak had no chance of a honeymoon period: a bold 100 days in which he could “hit the ground running” and “come up with fresh ideas”.

Liz Truss had just tried that and crashed the economy.

Sunak and Jeremy Hunt, the chancellor who had already been chosen for him, faced an immediate crisis and a repair job to restore confidence. On the financial front Sunak has achieved what was asked of him.

There has been a “dullness dividend”. Britain’s economic standing is now no worse than it was before the shock of the Truss/Kwarteng mini-budget, interest rate rises are similar to those in equivalent economies, and normal service has resumed on debt markets.

Sunak has kept his head down, moving surreptitiously, because many of his measures – such as putting up taxes and trying to maintain public spending – are “unTory”, according to critics on his own side.

But then Conservative activists never wanted him as leader – after all they rejected him this summer in favour of Truss when they had the chance to vote for him.

Sunak’s paid a price for becoming PM

Sunak was once the rising star of the party. Back then he hired experts to run a slick personal publicity campaign, including videos and postings of his activities as chancellor branded with his signature.

This self-promotion backfired as his relationship with the then prime minister Johnson soured and as their policy differences widened.

Earlier this year “Rishi” was tarnished by being fined along with Johnson for breaking COVID party rules. Around the same time his public image as a future UK prime minister was shattered when the media were pointed towards his wife’s non-dom tax status and his own possession of a US green card.

Tory MPs installed Sunak as party leader and prime minister because the wider public, rather than Tory activists, saw no credible alternative if a general election was to be avoided.

The MPs knew that they had to prevent another ballot of the party membership which would probably have re-imposed the disgraced Johnson on the nation.

Sunak also had to pay a price to get to the top. He was effectively blackmailed into giving key jobs in the cabinet to people who would otherwise have thrown their weight behind another membership ballot, which was the last thing the national interest needed and which he might have lost.

Suella Braverman and Gavin Williamson, who had both previously been sacked from government for misconduct, were the most prominent of these compromise appointments.

They have got in the way of Sunak delivering his promise that “the government will have integrity, professionalism and accountability”.

Williamson has already had to resign for bullying, Braverman is under investigation for similar offences, as is Dominic Raab, whose previous track record barely justified his reappointment as deputy prime minister.

Meanwhile Sunak was unable to find a place in government for his closest ally at Westminster, and former boss, Sajid Javid, who announced this week that he is standing down as an MP.

Beware the Tory man-eating tigers

Sunak has had to strike similar compromises with the broader range of Conservatives in parliament.

Tory MPs have tasted blood so often in ousting four PMs – Cameron, May, Johnson and Truss – that they are the political equivalent of man-eating tigers, unable to stop.

Some of them are already predicting that next spring’s local election results will be so bad that they will have a chance then to get rid of “Rishi” and perhaps replace him with “Boris”. Many have already abandoned hope that the Conservatives can win the next general election and are thinking only of their own skins.

For more than a dozen MPs so far that means not standing for re-election. Quitter Matt Hancock epitomized the prevalent mood of self-interest this week when he lectured the prime minister that he was going because “the Conservative Party must now reconnect with the public we serve.”

Others are trying to bend the government to policies which will go down well with voters in their constituencies even if they are not necessarily in the national interest.

Sunak has little appetite to fight ideological battles

In spite of the notional Conservative majority in the Commons, Sunak’s programme is constantly vulnerable to rebellion and potential defeat.

Shire Tories don’t want house building in their back yard, so this week Sunak U-turned on house building.

Landowners and the construction industry like on-shore wind farms so Sunak U-turned to favour them.

Campaigners in the North East want the jobs generated by a new coal mine in Cumbria, so the government has given it the green light, overruling its own environmental advisors.

Sunak has little appetite to fight ideological battles with his own side in parliament, continuing instead to concentrate on practical problems, away from parliamentary scrutiny where possible.

Business managers have dropped the Schools Bill, pleading pressure of parliamentary time, even though the House is actually sitting for fewer hours than usual, and often goes home at teatime on Wednesday.

Raab’s plans for a British Bill of Rights are set to be shelved, in favour of practical measures on strikes and small boat migrants.

The avoidance of hard hats

Chancellors of the Exchequer concentrate on one big thing, surfacing rarely to go public. Gordon Brown was shocked how constant the demands on him were when he became prime minister.

Former Chancellor Sunak is also finding out the hard way – as was shown by his initial decision, quickly reversed, not to attend the COP 27 meeting in Egypt. Since then he has only been out and about when he can’t avoid it, at the G20, Remembrance Day, and the Lord Mayor’s banquet.

Stung by missteps of his predecessors and his former self, Sunak has let it be known that he will not be donning hard hats and high vis jackets for what have become standard photo opportunities.

He will be hoping that trying to do the right thing, slowly and cautiously, will have political dividends over time, rather than being merely its own reward. As yet there is little sign that his low profile is paying off for the Conservatives.

Sunak’s absence of PR bluster has upset Tory cheerleaders who have come to expect the swagger of a Cameron, Johnson or Truss. But then, in the long run, such overconfident celebrity behaviour did neither them nor the UK much good.

World

Court confirms sacking of South Korean president who declared martial law

Published

12 hours ago

April 4, 2025

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

World

Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Published

13 hours ago

April 4, 2025

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.

The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.

While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.

Trump tariffs latest: US stock markets tumble

All three of the US’s major markets opened to sharp losses on Thursday morning.

By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.

Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.

Worst one-day losses since COVID

As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.

The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.

It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.

‘Trust in President Trump’

White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.

“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”

Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.

Economist warns of ‘spiral of doom’

The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.

He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.

Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.

He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”

It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.

Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.

Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.

It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.

He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”

World

Donald Trump announces sweeping global trade tariffs – including 10% on UK imports

Published

2 days ago

April 3, 2025

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Donald Trump announces sweeping global trade tariffs - including 10% on UK imports

Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.

Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.

“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.

Follow live: Trump tariffs latest

He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.

The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.

It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.

The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.

The UK government signalled there would be no immediate retaliation.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.

“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.

“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.

“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

The EU has pledged to retaliate, which is a problem for Northern Ireland.

Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.

It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.

The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.

Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.

The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.

The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.

A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.

But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.

He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.

“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”