The finance minister’s appointment has stirred speculation about the country’s economic future. With inflation now heading for double digits, the country is suffering from a lack of momentum. Unlike other large industrialised economies, the UK is also struggling to regulate life after Brexit. However, Zahawi has promised to take a holistic approach to the country’s economic recovery.
The new British finance minister, Nadhim Zahawi, has pledged to revive the country’s faltering economy. He said he would look at all options, including tax cuts, to boost the economy. While the economy has shown signs of slowdown in recent years, inflation is forecast to hit double digits this year, and the UK is struggling to adapt to life after Brexit.
He also pledged to improve the nation’s public finances and fight inflation. However, the new minister also said that “2023 will be a very tough year.” He hinted at easing taxes for individuals and reconsidering corporate taxes. Some Conservative MPs have been calling for a tax cut, but Sunak has tried to find ways to boost business investment.
The UK’s markets have been braced for more political unrest, as investors wait to see whether the new finance minister will loosen the purse strings. With Johnson’s resignation, the future of Johnson’s premiership is still in doubt. On Wednesday, the new team may unveil populist spending measures aimed at boosting the economy. With no clear answer yet, investors expect sterling to struggle in the short term.
Amid these challenges, Zahawi is preparing a speech on the economic outlook, laying out his priorities to stimulate the economy. He replaced Rishi Sunak, who was sacked as finance minister in 2015.