Sunak enters 10 Downing Street as the UK’s third prime minister in five months after the resignations of Liz Truss this month and Boris Johnson in July.

The Conservative leadership election process was triggered last Thursday (20th October) after Truss stepped down following immense pressure to do so over the volatile economic conditions created by the introduction of her mini-budget in September.

In his first speech delivered outside Number 10 today (25th October), Sunak said he was elected in part to fix mistakes made by Truss during her tumultuous 44-day stint in office.

“She was not wrong to want to improve growth in this country,” he said.

“I admired her restlessness to create change, but some mistakes were made.”

Sunak said he intended to place economic stability and confidence at the heart of his government's agenda.

“The government I lead will not leave the next generation, your children and grandchildren, with a debt to settle that we were too weak to pay ourselves,” he said.

“This government will have integrity, professionalism and accountability at every level.

“Trust is earned, and I will earn yours.”

Specialist finance industry reacts to new prime minister 

In response to Sunak’s rise to the premiership, figureheads from across the specialist financial services sector echoed one another in identifying the enormity of the task awaiting Sunak as he takes office.

Michael Stratton, founder and CEO of MS Lending Group, said he hopes Sunak harnesses his experience leading the UK through the Covid-19 pandemic and the subsequent furlough scheme to his new role.

“The confirmation of Sunak I hope brings some much-needed stability within the government.

“We need a PM who is relentlessly focused on getting people through what is expected to be some challenging times.”

Stratton continued: “We need more than ever some economic stability in the UK.

“Either way, the past few weeks have prepared us as a business for all situations the government may choose to throw at us, and we continue to offer our customers a great option for their financing needs.”

Ellis Sher, co-founder and CEO of Maslow Capital, expressed a sense of relief at the election of “the only credible candidate with the necessary economic understanding to make the right calls”.

“I am relieved that sense prevailed,” he stated, “anyone other than Sunak at the helm would have caused further chaos in the financial markets — something our country can ill-afford.

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“I hope that his appointment is a sign that the Conservative Party recognise they are on borrowed time and will now start to act in the way that we expect of them and what the country deserves.”

Nick Sanderson, CEO at the Audley Group, identified housing, health and social care as key issues for Sunak to address quickly after they were left at the wayside during the “political turmoil” of the past few months.

“This doesn’t have to mean investment, especially at a time when the government needs to look at cost cutting, but it does require thinking cleverly.

“Planning reform, which mandates for age-specific housing in any new housing scheme, would have the single greatest impact on both the housing market [and] the way we look after ourageing population.

“Importantly, for the new prime minister, this doesn’t need a cash injection from the government coffers.

“Progress has started with the cross departmental Housing with Care Task Force, and this must now be prioritised,” he remarked.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, commented that Sunak would have to take a different approach to his position during the pandemic.

“This isn’t the same Sunak who gave Santa a run for his money during the pandemic.

“He’s going to have an incredibly tight hold on the purse strings.

“Jeremy Hunt is likely to stay at Number 11 with his mantra of tough decisions and spending cuts.

“It means we may not be able to rely on extra help when we’re facing horrific price rises next April.

“It was partly Sunak’s commitment to keeping a lid on spending, and higher levels of taxation that persuaded Conservative Party members that there had to be an easier answer during the last leadership election.

“The short and messy premiership of Liz Truss may well have cemented the opinion that right now there’s no alternative.”

Joshua Ellard, head of bespoke finance at Finanze, said: “As the third PM in seven weeks enters the first of days of his premiership, many will be hoping that the appointment of Sunak will somewhat help to calm the turbulent waters of the UK’s economic and political outlook.

“Much of the recent turmoil across the UK financial markets has been fuelled by uncertainty.

“Early indicators would suggest a shift in the right direction, although there is a long way to go to restore confidence in the government.

“We will likely see a far more restrictive approach to fiscal policy, plunging the UK into a new wave of austerity.

“The country now waits to see whether the Tory party can shift efforts from fighting internally to providing a stable economic solution.”