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UK UPDATE

Sunak sticks with Hunt, keeps Mordaunt in Cabinet

Rishi Sunak after taking office outside 10 Downing Street on 25 October 2022. (Photo: Dan Kitwood / Getty Images)

Rishi Sunak reappointed Jeremy Hunt as UK Chancellor of the Exchequer, keeping a key ally in post who has already begun the work of trying to repair the economic damage caused by Liz Truss’ administration.

Britain’s new leader is setting out the top ministerial team he wants to tackle what he called the “profound economic crisis” facing the UK. James Cleverly stays as Foreign Secretary and Defence Secretary Ben Wallace was also reappointed. In a controversial move, Suella Braverman is back as Home Secretary – days after Truss fired her over a national security breach.

Therese Coffey, a key ally of the ousted premier, stays in the Cabinet, swapping the health brief for the environment one, while Penny Mordaunt, Sunak’s final rival in the race to the top job, retains her post as Leader of the House of Commons.

In appointing his team, Britain’s third prime minister in two months has had to strike a balance between rewarding loyalists who backed his two leadership campaigns this year while ensuring party unity by including figures from across warring factions.

Here are today’s latest developments:

Northern Ireland, Scotland Secretaries Stay in Place

Chris Heaton-Harris will stay on as Northern Ireland Secretary – a role requiring continuity amid delicate negotiations with the European Union over the Northern Ireland Protocol. With parties in the region unable to agree on forming a government, he’s poised to trigger an election on Friday.

A staunch Boris Johnson ally, Heaton-Harris is also former chair of the Tory Party’s Brexit-supporting European Research Group. Keeping an ardent Brexiteer in a role close to the EU talks may help Sunak lower the likelihood of rebellion over any deal that involves compromises.

Alister Jack also retains his post as Scotland Secretary, while David T. C. Davies joins the Cabinet as Welsh Secretary.

Badenoch Stays as Trade Secretary; Gove Back in Cabinet 

Kemi Badenoch, a rising star in the Conservative Party whose endorsement of Sunak helped build momentum for his successful leadership bid, keeps her post as Trade Secretary. She’s also been handed the equalities brief which she previously held for more than two years.

Meanwhile party heavyweight Michael Gove – whose support for Badenoch in the last leadership contest helped raise her profile – is back in the Cabinet. He returns to the post Boris Johnson sacked him from in July – Secretary of State for Levelling Up, Housing and Communities. It’s a role that gives him responsibility for delivering on the Conservative Party’s flagship 2019 election pledge to better spread wealth and opportunity around the UK.

Michelle Donelan, meanwhile, was reappointed Secretary of State for Digital, Culture, Media and Sport.

Sunak Keeps Coffey, Mordaunt in Cabinet roles 

After his early cabinet appointments were mainly men, Sunak has now handed some more roles to prominent women. Therese Coffey swaps the health brief for the environment one. Keeping her in the Cabinet is a reflection of Sunak’s efforts to build party unity, because she was Liz Truss’ closest ally.

After much speculation she’d be rewarded with a promotion – perhaps to the Foreign Office – Sunak’s leadership rival Penny Mordaunt was re-appointed as leader of the House of Commons. She may have paid the price for waiting until the last minute to concede victory to Sunak.

Meanwhile, Gillian Keegan was promoted to the Cabinet for the first time, becoming the fifth Education Secretary in four months. She was previously a junior minister in the same department.

Mel Stride Named Work & Pensions Secretary, Steve Barclay to Health 

Mel Stride, who chaired Parliament’s Treasury Select Committee and ran Sunak’s leadership campaign in Westminster, was rewarded with the position of Work & Pensions Secretary.

He and Sunak face a key early decision on whether to up-rate welfare payments in line with inflation rather than wages. Stride has been on record in recent weeks erring towards making the move – which would be more expensive than the alternative – saying it will be difficult for the government to do otherwise given strong pressure from Conservative backbenchers.

Sunak also appointed Steve Barclay as the new Health Secretary, a return to the role he held for two months until Truss took power. Barclay also served as Sunak’s deputy when he was Chancellor, meaning he’s installed a former Treasury ally who will be tasked with keeping a tight grip on spending in the NHS.

Shapps Moves to Business; Zahawi Tory Chairman 

Grant Shapps has been given the task of guiding the UK through the energy crisis – a key role in Rishi Sunak’s new Cabinet. Shapps, who replaced Braverman just days ago, takes over from Jacob Rees-Mogg as Business and Energy Secretary after the Truss ally quit when Sunak took power on Tuesday.

Shapps was a thorn in Truss’s side, lobbying for her to drop key parts of her failed tax-cutting package and organizing efforts to oust her.

Nadhim Zahawi, meanwhile, has been made Conservative Party Chairman, putting him in charge of preparing them for the upcoming general election due in January 2025 at the latest. It caps an eventful few days for Zahawi, who supported Boris Johnson before the former premier aborted his comeback bid. He’s now tasked with overturning a record deficit in opinion polls.

Braverman Back as Home Secretary Days After Sacking

Sunak appointed Suella Braverman as home secretary, just days after Liz Truss sacked her over a security breach – a move that ultimately contributed to the prime minister’s own demise.

Braverman and Truss fundamentally disagreed on immigration policy. Whereas the former wants to dramatically cut net migration and reduce the amount of visas the UK is handing to foreign workers, Truss had hoped to loosen immigration controls in a bid to grow the economy.

Still, it was a surprise when Braverman backed Sunak in the leadership contest instead of Boris Johnson. Her appointment on Tuesday suggests Sunak is on board with her demands on immigration policy – despite reports that they have frustrated progress on a free-trade deal with India.

Cleverly Keeps Role as UK Foreign Secretary 

James Cleverly, a staunch ally of both Truss and Boris Johnson, is staying as foreign secretary – a sign that some Cabinet minister who didn’t support him will keep their jobs as the prime minister attempts to show a united front.

Cleverly has only been in the role for a few weeks, but has already overseen the re-opening of talks with the European Union on post-Brexit trade rules for Northern Ireland.

But his reappointment will come as a huge blow to Penny Mordaunt, who had been linked to the senior position after dropping out of the leadership contest on Monday – a move that left Sunak unopposed.

Hunt Says ‘Protecting the Vulnerable’ Is Focus 

Chancellor of the Exchequer Jeremy Hunt has tweeted after his reappointment this afternoon.

“It is going to be tough,” he said. “But protecting the vulnerable – and people’s jobs, mortgages and bills – will be at the front of our minds as we work to restore stability, confidence and long-term growth.”

He and Sunak have a major decision looming about whether to raise welfare payments in line with inflation. If they don’t, Britain’s poorest will face an even greater squeeze on their living standards.

Raab Appointed Deputy PM, Hart Is Chief Whip 

Sunak has picked Dominic Raab to be his deputy prime minister and justice secretary. Raab, a big backer of Sunak’s leadership campaign, held both those roles previously under Boris Johnson – indeed Raab was temporarily de facto leader in 2020 when Johnson was hospitalised with coronavirus.

Meanwhile Simon Hart, a former Welsh secretary, told Bloomberg he has been appointed as Sunak’s chief whip, or parliamentary enforcer. Hart is a close ally of former chief whip Gavin Williamson, who played a key role on Sunak’s two leadership campaigns this year.

Sunak Reappoints Jeremy Hunt as Chancellor 

Sunak has announced that he’s keeping Jeremy Hunt – the man who stabilised markets after the economic turmoil caused by Liz Truss – as Chancellor of the Exchequer.

Hunt is due to give a major fiscal statement on October 31 setting out the government’s spending plans. We’re still waiting for Sunak to confirm that the October 31 timetable won’t slip.

Most Britons Think Sunak Is Out of Touch 

A substantial majority of Britons – 68% – think Sunak will do better than his predecessor, Liz Truss, according to a YouGov poll of 1,659 adults. But the picture is less rosy on just how good a prime minister they expect him to be: Just 25% expect him to be great or good, while 29% think he will do a poor job.

The public overwhelmingly want Sunak to prioritize the cost-of-living crisis, though two thirds of people believe he’s out of touch with ordinary people, YouGov found.

Sunak Returns to Downing Street to Start Cabinet Appointments 

Sunak has completed the sackings made from his parliamentary office and is now back in Downing Street, where appointments to his first Cabinet will be made shortly, a spokeswoman said.

The latest to leave their posts are Leveling Up Secretary Simon Clarke and Education Secretary Kit Malthouse. When Malthouse’s replacement is appointed, the UK will have had five different education secretaries since July. Alok Sharma will remain in his United Nations climate talks role as COP26 President, but will no longer attend cabinet.

Buckland, Berry, Jayawardena Join Cabinet Exodus 

Also leaving their posts are Party Chairman Jake Berry, Environment Secretary Ranil Jayawardena and Secretary of State for Wales Robert Buckland. All three men posted their departures on Twitter.

Chloe Smith Departs Cabinet 

Chloe Smith confirms on Twitter that she’s left her role as work and pensions secretary.

Morton Departs Her Role as Chief Whip 

Wendy Morton also confirms her departure from the cabinet on Twitter. As chief whip — in charge of party discipline – she was at the centre of the dramatic fracking vote last week that precipitated Truss’s downfall. Morton had appeared to resign at the time – before Truss’s office said she remained in post.

Rees-Mogg, Lewis Quit Cabinet 

Business Secretary Jacob Rees-Mogg and Justice Secretary Brandon Lewis both quit their cabinet roles on Tuesday as Sunak began an overhaul of his top ministerial team.

Lewis posted his resignation letter on Twitter, while Rees-Mogg’s resignation was confirmed by a person familiar with the matter.

Rees-Mogg was a staunch supporter of both Liz Truss and Boris Johnson and has previously said he wouldn’t serve in Sunak’s Cabinet, criticizing the new premier’s leadership campaign when Sunak stood unsuccessfully against Truss over the summer. He quit his post after he finished taking questions on his department’s work in the House of Commons on Tuesday morning, the person said.

Boris Johnson Says Sunak Deserves Support 

It took a while, but nearly a day after Sunak emerged victorious in the race to succeed Truss, her predecessor, Boris Johnson, has congratulated the new premier, saying he deserves the support of the Conservative Party.

Johnson paved the way for Sunak’s premiership when he dropped out of the leadership race on Sunday, eclipsing any chance of what would have been an extraordinary comeback. There’s a bit of rancor between the two men, with many Johnson supporters blaming Sunak for the former premier’s ouster back in July: It was Sunak’s resignation as Chancellor that sparked the mass exodus from Johnson’s government that brought him down two days later.

Sunak Gives First Speech, Vows to Fix Errors 

Sunak gave his first speech as prime minister, warning of “difficult decisions to come” as he bids to “fix” the errors of Truss’ outgoing administration.

He also said he would restore trust and integrity in government, a subtle jab at Boris Johnson, who resigned as prime minister in disgrace earlier this year.

“I understand too that I have work to do to restore trust after all that has happened,” Sunak said. “All I can say is that I am not daunted.”

Truss Gives Final Speech as Prime Minister 

Liz Truss made her final speech as prime minister outside 10 Downing Street, before heading to see the King to resign. She stuck to her guns in saying the country needs lower taxes and a strategy to take advantage of its Brexit freedoms, despite her plans spectacularly backfiring during her short tenure.

There was also no apology for the economic mistakes that roiled the markets and pushed up borrowing costs for millions of people.

“Our country continues to battle through a storm,” she said, wishing her successor “every success” in the job and pledging to stay on as an MP on the back benches. “I know that brighter days lie ahead.”

Sunak Supporter Says He Wants October 31 Fiscal Statement

Victoria Atkins, a former justice minister and supporter of Rishi Sunak’s leadership campaign, said the incoming premier “very much wants a statement on Oct 31,” referring to the government’s current schedule for announcing its medium-term fiscal plans.

“But decisions need to be made on that,” Atkins said on Sky News. She said Sunak and Hunt will have detailed discussions in the coming days.

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