On Tuesday, Prime Minister Rishi Sunak pledged to "fix the mistakes" made by the Truss government and restore the British economic stability, while warning there will be "difficult decisions to come."
Rishi Sunak Wins Mandate to Become New British Prime Minister
"Right now, our country is facing a profound economic crisis," Sunak said in his first address to the nation outside 10 Downing Street. He officially became the prime minister moments ago after King Charles III met him at Buckingham Palace and invited him to form a government.
Former Prime Minister Liz Truss was not wrong to want to improve growth, which was a "noble aim," but "mistakes were made," Sunak said, adding that he had been elected to "fix" those mistakes.
Her attempt of using debt-funded tax cuts to spur economic growth plunged the British pound to a 37-year low against the U.S. dollar, while pushing up the cost of government borrowing and mortgage rates.
"I will place economic stability and confidence at the heart of this government's agenda," he said. "This will mean difficult decisions to come," he added.
Sunak, 42, inherits an economy on the brink of recession, with an energy crisis, cost-of-living crisis and runaway inflation that defy any easy fix.
The prime minister also said he will deliver on the party's manifesto, including a stronger National Health Service (NHS), better schools, safer streets, leveling up and building an economy that embraces the opportunities of Brexit.