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

‘Wolf of Wall Street’ Jordan Belfort breaks silence on Trump’s tariffs

Published

1 hour ago

April 11, 2025

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'Wolf of Wall Street' Jordan Belfort breaks silence on Trump's tariffs

‘Wolf of Wall Street’ Jordan Belfort has told Sky News there’s “no way” Donald Trump is guilty of insider trading or market manipulation.

Opponents say the president has questions to answer after he said it was a “great time to buy” shares – four hours before the stock market surged on Wednesday when he paused tariffs.

Mr Belfort told Gillian Joseph the fact Mr Trump made the statement on social media meant it was public, rather than him tipping off a few people.

Tariffs latest: Trump – ‘everything will be beautiful in the end’

Speaking on The World programme, Mr Belfort said: “I personally don’t find it overly suspicious. Especially since he’s told it to everybody at once.

“If he hadn’t said anything and told five of his best friends ‘I’m gonna ease this tariff situation – you should be buying’, that would be illegal.”

Insider trading is when people take advantage of non-public information to buy or sell shares and make a gain.

The former stockbroker was famously played by Leonardo DiCaprio in the film about his early life and admitted crimes related to stock manipulation.

Mr Belfort said Mr Trump’s post was just repeating what the president had said previously, and that buying when share prices plunge is a well-known investment move.

“He had been saying that all along [to buy], it wasn’t the only time he’d said that,” said Mr Belfort.

“[Treasury] Secretary Bessent had been saying that too. It’s a really basic piece of advice.”

Stock markets around the world plunged dramatically on Monday due to the start of America’s wide-ranging tariffs on imports from around the world.

The world economy was rattled again just two days later when the president said nearly all of the taxes would go on hold for 90 days.

The key S&P 500 index jumped nearly 10% – a huge daily increase.

Rival Democrat politicians say Mr Trump‘s encouragement to buy raises “grave ethics concerns”.

Some are calling for an urgent inquiry into whether any of his family or administration officials benefited by dealing in the stock market ahead of time.

The White House said the president’s post was simply reassuring Americans “about their economic security in the face of nonstop media fearmongering”.

Mr Belfort accused Democrat figures of trying to “earn brownie points with the media and their party”.

‘Not gonna be pretty’

Despite the mid-week surge, turbulence in stock markets appears far from over – chiefly because China and the US remain locked in a tariffs stare down.

American indexes closed down again on Thursday, Japan’s Nikkei fell about 5% early on Friday, and Hong Kong stocks are heading for their worst week since 2008.

Gold meanwhile, considered a “safe haven” asset, has climbed to a record price and earlier today passed the $3,200/oz level for the first time.

Mr Belfort told Sky News that while he was against tariffs generally, President Trump’s dramatic intervention was necessary as the US has an “insane” trade imbalance and imports far more than it exports.

“The United States has been drained of its wealth, drained of its factories,” he said.

“It’s not gonna be pretty,” added Mr Belfort. “There’s going to be pain – but the path we were on before is simply unsustainable. It had to change.”

He said he was sceptical over fears the tariffs will hit US consumers hard, with some predicting goods – including popular items such as the iPhone – could jump in price if costs are passed on.

The former trader said he believes firms would shift production from China, which is subject to a tariff of more than 100%, to places such as India, and that exemptions would eventually be agreed.

He also gave the thumbs up to Elon Musk‘s controversial government efficiency role which has forced thousands of jobs cut.

“I love what is being done because the amount of abuse and waste and fraud, it’s absolutely insane,” said Mr Belfort.

“It’s a great thing that’s happening. Obama talked about doing it, Clinton tried it; this is not a new idea to try to make the government more efficient.”

If Mr Musk leaves or quits in the near future, as is rumoured, Mr Belfort said the world’s richest man has installed “some very seasoned business people that really care about the country”.

World

Day 82: Stock market whiplash – did Trump’s friends get richer?

Published

1 hour ago

April 11, 2025

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Day 82: Stock market whiplash - did Trump's friends get richer?

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With markets tumbling again, President Trump has been meeting his cabinet – where more questions were put to him over his turbulent tariff plan. On Day 82, US correspondents Mark Stone and James Matthews discuss what happened.

Plus, Mark has been on the road in Wisconsin and Minnesota, speaking to people caught up in the crossfire of the trade war.

If you’ve got a question you’d like James, Martha, and Mark to answer, you can email it to trump100@sky.uk.

Don’t forget, you can also watch all episodes on our YouTube channel.

World

How Trump changed his mind on tariffs

Published

16 hours ago

April 10, 2025

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“Liberation Day” just gave way to Capitulation Day.

US President Donald Trump pulled back on Wednesday on a series of harsh tariffs targeting friends and foes alike in an audacious bid to remake the global economic order.

Mr Trump’s early afternoon announcement followed a harrowing week in which Republican lawmakers and confidants privately warned him that the tariffs could wreck the economy.

His own aides had quietly raised alarms about the financial markets before he suspended a tariff regime that he had unveiled with a flourish just one week earlier in a Rose Garden ceremony.

Tariffs latest: Beijing takes fight to Trump

The stock market rose immediately after the about-face, ending days of losses that have forced older Americans who’ve been sinking their savings into 401(k)s to rethink their retirement plans.

Ahead of Mr Trump’s announcement, some of his advisers had been in a near panic about the bond markets, a senior administration official told Sky News’ US partner network NBC News.

Interest rates on 10-year Treasury bonds had been rising, contrary to what normally happens when stock prices fall and investors seek safety in treasuries.

The unusual dynamic meant that at the same time the tariffs could push up prices, people would be paying more to buy homes or pay off credit card debt because of higher interest rates. Businesses looking to expand would pay more for new loans.

Two of Mr Trump’s most senior advisers, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, presented a united front on Wednesday, urging him to suspend the tariffs in light of the bond market, the administration official said.

In a social media post, Mr Trump announced a 90-day pause that he said he’ll use to negotiate deals with dozens of countries that have expressed openness to revising trade terms that he contends exploit American businesses and workers.

One exception is China. Mr Trump upped the tariff on the country’s biggest geopolitical rival to 125%, part of a tit-for-tat escalation in an evolving trade war.

Mr Trump reversed course one week after he appeared in the Rose Garden and unveiled his plan to bring jobs back to the United States. Displaying a chart showing the new, elevated tariffs that countries would face, Mr Trump proclaimed: “My fellow Americans, this is Liberation Day.”

It proved short-lived. Markets plunged in anticipation of heightened trade wars, wiping out trillions of dollars in wealth.

Democrats seized on the issue, looking to undercut a source of Mr Trump’s popular appeal: the view that he can be trusted to steer the nation’s economy.

“Donald Trump’s market crash has vaporised a whopping $104,000 from the average retirement account,” Senate Minority Leader Chuck Schumer, said on Wednesday on the Senate floor, hours before the president’s reversal.

The episode laid bare the rifts within Mr Trump’s team of senior advisers as the White House struggled to offer a clear, consistent argument about the duration of the tariffs.

While Mr Bessent seemed open to negotiations, Peter Navarro, a senior trade adviser, appeared to take a more hard-line posture.

Elon Musk, the billionaire Tesla chief executive who has been advising Mr Trump on the government workforce, called Navarro “dumber than a sack of bricks,” while Mr Navarro described Mr Musk as someone who is merely “a car assembler, in many cases”.

But the weeklong drama also underscored the peril of a policymaking process that is often tied to the wishes and vagaries of one man: Donald Trump.

Asked about the dust-up between Mr Musk and Mr Navarro, Republican Senator Lindsey Graham, a golf partner of Mr Trump’s, said: “I don’t think it matters. The only one who matters is Trump.”

Markets tend to favour predictability, as do business leaders deciding where to build new plants. When Mr Trump sets a course, however, there are bound to be detours.

A friend of his who spoke to him in recent days said Mr Trump gave no sign he was about to “back down quickly on this stuff”.

Mr Trump believes other countries trade unfairly and sees tariffs as a tool to make the United States more competitive, the person said.

“He’s very confident it’s going to work for him,” the person added, speaking on condition of anonymity.

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And yet in the run-up to Wednesday’s announcement, Mr Trump and his aides were also hearing from GOP lawmakers and outside allies urging an alternative path.

One was Larry Kudlow, who hosts a show on Fox Business Network and was a senior economic adviser in Mr Trump’s first term.

Mr Kudlow told NBC News that he has had “ongoing” talks with friends in the West Wing about the need to negotiate with other countries before the United States slaps them with tariffs that stand in perpetuity.

Describing Mr Trump’s move Wednesday as “fabulous,” Mr Kudlow added: “Dealmaking is the best thing to do. In the last 48 hours, Trump has gone from non-negotiating to negotiating.

“It’s very clear that Bessent is now the point man on trade. Very clear.”

Anxious GOP lawmakers also weighed in.

Mr Graham said he spoke to Mr Trump at length on Tuesday night and told him he had been hearing from car manufacturers who are worried about how the tariffs would affect their business. BMW operates a plant in Mr Graham’s home state and is one of the companies he said he had spoken to.

Senator John Kennedy, a Republican lawmaker who was also in touch with the administration, said on Tuesday that he planned to have lunch with Mr Bessent. On Wednesday, he told NBC News he was also talking to the White House.

Mr Kennedy likened Mr Trump to the “pit bull who caught the car”. Now, he said, the question becomes: “What are you going to do with the car?”

After more market losses this week, and with pressure mounting from Republicans on Capitol Hill, Mr Trump began having second thoughts.

In his first term, he often viewed the ups and downs of the stock market as a kind of report card on his presidency, celebrating its rise. The downturn had got his attention.

“People were getting a little queasy,” he acknowledged Wednesday on an event with NASCAR racing champions.

“Over the last few days” he began to more seriously consider pausing the additional tariffs, he told reporters later in the day in an Oval Office appearance.

One prospect that intrigued him was personally negotiating new trade deals with the countries looking to get out from under the tariffs, the senior administration official said.

He’d made up his mind. Sitting with Mr Bessent and Mr Lutnick, he crafted the note announcing the 90-day postponement and ending, for the time being, the biggest economic crisis of his young presidency.

“We wrote it from our hearts, right?” Mr Trump said. “It was written as something that I think was very positive for the world and for us, and we don’t want to hurt countries that don’t need to be hurt, and they all want to negotiate.”

The day closed with the Dow Jones Industrial Average up nearly 8%, erasing some – but not all – of the “post-Liberation Day” losses.

Messy as it all may have seemed, his administration insisted that all is unfolding as planned.

“You have been watching the greatest economic master strategy from an American president in history,” White House deputy chief of staff Stephen Miller posted on Wednesday afternoon.