Rishi Sunak

Rishi Sunak Background

Rishi Sunak was born in Southampton on the 12th of May, 1980. His grandparents emigrated from Punjab, India, to East Africa (Kenya and Tanzania), where both his parents met. They married and moved to Southampton in the 1960s.

Sunak's parents were medical professionals, his father working as an NHS General Practitioner (family doctor), and his mother running a pharmacy. He sometimes helped his mother with the company books, which helped develop his interest in economic management.

Rishi Sunak Education

Sunak attended the private Winchester College (a boarding school which has produced six British chancellors), where he edited the school newspaper.

He went to Oxford University (Lincoln College), studying Philosophy, Politics, and Economics. Here, he continued to pursue his interests in economics, chairing the 'Trading & Investment Society'. The society taught students about trading and financial markets and organised events such as competitions and face-to-face meetings with bankers.¹ During his time at university, Sunak participated in an internship scheme at the Conservative Party HQ.

He graduated in 2001 and worked at the investment bank Goldman Sachs until 2004. He then studied for a Master's in Business Administration at Stanford University after gaining a Fulbright scholarship - a prestigious academic scholarship. Sunak met his wife, Akshata Murthy, whilst studying at Stanford.

Rishi Sunak Early Career

Sunak began working with the 'Children's Investment Fund Management', in 2006, later becoming a junior partner (a role of responsibility within the fund). He joined another hedge fund in 2009, Theleme Partners, and also directed Catamaran Ventures, a company owned by his father in Law.

Rishi Sunak married Akshata Murthy in 2009, and they now have two daughters. Murthy owns significant shares in Infosys, a company run by her billionaire father, Narayana Murthy. They are believed to have a combined wealth exceeding £730 million, making Sunak Britain's richest-ever Prime Minister.

Rishi Sunak Political Career

Sunak began working with the Conservative Party again in 2010 and, by 2014, had been selected to represent the parliamentary seat of Richmond in North Yorkshire. The Conservatives have held the seat since 1910, and it was previously occupied by William Hague, who led the Conservative Party from 1997 to 2001.

Before becoming an MP, Sunak worked with the Policy Exchange think tank, where he co-produced A Portrait of Modern Britain (2014), a publication discussing BME (Black and Minority Ethnic) communities in Britain.

The Rt Hon Rishi Sunak MP

In the 2015 General Election, Sunak was elected MP for Richmond after gaining over 50% of the votes in the constituency, followed by UKIP and Labour (who each gained only around 15%).

From June 2017, he worked as a Parliamentary Private Secretary (an assistant to a minister) for the Department for Business, Energy and Industrial Strategy. He also carried out several other roles, including the Chief Secretary to the Treasury from 2019 until 2020 under PM Johnson.

Chancellor of the Exchequer

Rishi Sunak was appointed Chancellor on the 13th of February 2020 after a cabinet reshuffle by Boris Johnson. Sajid Javid, the previous Chancellor, resigned earlier that day and was under increasing pressure from the Prime Minister. In particular, Javid did not wish to give the PM and his advisors more control over the budget.

Sunak had backed Johnson's leadership move in 2019 and had even represented him during the televised leadership debate on ITV, where seven parties were represented for the 2019 December General Election.

Not long after Sunak was appointed Chancellor, the COVID-19 pandemic prompted the government to announce lockdown measures, and Sunak soon found himself at the forefront of British politics. As Chancellor, he implemented various significant economic support measures, including the furlough scheme, where the government provided businesses with assistance to pay employees during the lockdown. Another well-known intervention was the 'Eat Out to Help Out' scheme, a voucher scheme to encourage people to dine out, support the service and catering industries, and boost the economy.

Sunak became a popular and respected figure during this time, mainly due to his professional speeches throughout the pandemic and his largely successful economic policies.

He continued as Chancellor under Boris Johnson until 5th July 2022, when he resigned at the same time as a number of his cabinet colleagues. These defections eventually pressured Boris Johnson to resign as Prime Minister on July 7th after several months of controversies and scandals.

Rishi Sunak Controversies

Sunak came under pressure after being associated with 'partygate'. It was a political scandal during the COVID-19 pandemic where Johnson, alongside government members including Sunak, was found to have breached lockdown rules and attended parties.

Later in April 2022, it emerged that Sunak's wife, Akshata Murthy, had avoided up to £20 million in tax. This was because she was living in the UK as a non-domicile (i.e., non-resident), meaning she paid taxes in her permanent home state instead (in India). This placed further pressure on Sunak, even after his wife agreed to begin paying UK taxes.

Rishi Sunak Voting Record

Sunak's general parliamentary voting history is typical of other Conservative MPs, and he has never been recorded as having voted against the Whip (ordered voting by the party).

Rishi Sunak and the Brexit

Sunak supported Britain's exit from the EU in the 2016 referendum and backed many pro-Brexit policies in Parliament. This included backing Theresa May on several occasions in passing her withdrawal deal. He saw Brexit as an opportunity for economic and political freedom. However, he has since conceded that it was inevitable that there would be an impact on trade with the rest of Europe.

Business and Taxation

As an MP, Sunak has consistently voted in favour of reducing the rate of corporation tax and against increasing taxes for banks. He has also supported raising the tax threshold, meaning people must earn a higher amount before paying taxes.² Nevertheless, as PM, he has committed to increasing some taxes in the context of growing government debt and the cost of living crisis.

Welfare

Like many other Conservative MPs, he has often voted against increasing welfare benefits for those unable to work and supported general welfare decreases.

Foreign Policy of Sunak

Sunak supported using military force against ISIS in 2015 and vocally supported Ukraine throughout the Ukraine conflict.

Sunak and the Environment

In Parliament, he has voted consistently against measures seeking to prevent climate change. As Chancellor, he stayed relatively quiet on the issue, particularly in the context of backbencher contention.³

Rishi Sunak Prime Minister

Fig. 2 - Rishi Sunak addressing the nation during his first speech as Prime Minister, 25/10/2022.

After winning the Conservative Party leadership race, Rishi Sunak became British Prime Minister on October 25, 2022. The previous Prime Minister, Liz Truss, resigned on the 20th of October after pressure surrounding her economic policies.

Rishi Sunak was not elected through a General or snap election but was selected by Conservative MPs during a leadership contest to replace Truss. The last British parliamentary election took place in 2019, and the next general election is not due until January 2025.

Rishi Sunak became the first British Asian, as well as the first Hindu, to hold the office of Prime Minister. At 42, he is one of the youngest PMs in history, as well as the wealthiest.

He made new cabinet appointments from day one of his premiership, reappointing key figures such as Jeremy Hunt (Chancellor), Suella Braverman (Home Secretary), and Dominic Raab (Deputy PM and Secretary of State for Justice).

Rishi Sunak Policies

His first promises were to re-establish economic stability after Truss's radical policies of tax cuts led investors to lose confidence in the UK. The pound had even plummeted to its lowest-ever value against the pound.

He admitted that there were tough decisions to make, particularly around taxation and reducing debt.

Sunak and Chancellor Hunt have been looking at ways of reducing debt, such as tax increases and spending cuts to save billions a year.

Policies since in power

Sunak has made a variety of changes and u-turns (rejecting previous policies) and may divert from some of his pledges made during the summer contest. Nevertheless, he has committed to promises from the 2019 Conservative manifesto, such as levelling up (addressing economic imbalances across the UK).

Some of his first policies included re-establishing the fracking ban, as promised in the manifesto, and increasing a range of taxes. His first budget statement was scheduled for the 17th of November, 2022.

Rishi Sunak Leadership

Although Sunak has strengthened the relationship between No. 10 and the Conservative Parliamentary party, his early days have not been trouble-free.

Sunak has faced criticism over two of his cabinet appointments, Suella Braverman and Gavin Williamson. Braverman resigned from her previous position after breaking the ministerial code (by sending a classified document from her personal email). Some critics feel civil servants and the secret service may not trust her. Gavin Williamson is the subject of an inquiry after bullying allegations against him.

Finally, Sunak was criticised for first saying he would not attend COP27 in Egypt as he wished to focus on the budget. After public pressure, he later changed his mind and participated in the event.

Rishi Sunak Ideology Summary

Sunak is seen to be on the centre-right of politics. Although he considers himself a Thatcherite, he opposed the radical economic policies announced by Liz Truss. He supports Britain's relationship with Ukraine and Saudi Arabia and has spoken out against China's expansion, seeing it as a threat to global peace. He is also critical of China's human rights record.