The Brief: Rishi Sunak secured the required backing ahead of his rivals to become the UK’s next prime minister, replacing Liz Truss.
Why It Matters: Markets have responded favourably to his appointment. Sunak stands to inherit a battered economy following former Chancellor Kwasi Kwarteng’s mini-Budget that shook markets, and the ongoing global fuel crisis.
Finanze® Foresights: Sunak’s campaign promises when he ran unsuccessfully for Tory leadership against Truss included cutting the basic income tax rate by 20%, blocking inappropriate real estate developments on the Green Belt, accelerating home building with planning permissions, and redeveloping brownfield areas, among others. But after the fiasco in the previous administration, Sunak will need to set his sights first on rebuilding the country’s credibility, especially in the property market. Homebuyers are guaranteed that the stamp duty tax freeze will stay in place since Sunak previously supported the plan. During his stint as chancellor, he pushed for zero VAT on energy-saving measures for up to five years, and reduced fuel duty by 5% — all of which aimed at softening the pressure made by the soaring cost of living in the country. For now, we’re looking into his precise solutions to the millions of potential buyers being priced out of the market and how he can help commercial properties to rebound.
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