‘Common Sense Thatcherism’: Sunak Vows to Run UK Economy Like ‘Iron Lady’ If He Wins Tory Leadership

Former Chancellor Rishi Sunak is the bookmakers’ favorite among the present eight candidates to take over the Tory leadership after Boris Johnson resigned at the end of a controversy-packed stint at 10 Downing Street.

Rishi Sunak vowed to emulate Margaret Thatcher - the longest-serving British Prime Minister of the 20th century and the first woman to hold that office - if he wins the Tory leadership.

The former chancellor claimed he would model his policies on the Iron Lady’s economic approach, by prioritizing inflation, which hit a 40-year high of 9.1 percent in May, and carrying out responsible tax cuts, as he told The Daily Telegraph in his first campaign interview.

As his Tory leadership rivals launched a tax cuts “bidding war”, with another frontrunner – Foreign Secretary Liz Truss – vowing to slash taxes “from day one”, Sunak stated:

“We will cut taxes and we will do it responsibly. That’s my economic approach. I would describe it as common sense Thatcherism. I believe that’s what she would have done.”

Sunak, who currently boasts the most MP endorsements., including from Dominic Raab, the Deputy Prime Minister, and Grant Shapps, the Transport Secretary, added: “You have to earn what you spend.”

Critics of the 42-year-old British politician have dubbed him the “socialist chancellor” for setting the country’s tax burden to hit a projected 70-year high. However, Sunak dismissed the claims that his stance was un-Conservative.

With inflation projected to hit 11 percent this year, he argued that tackling it was the “number one economic priority.”

“Inflation is the enemy that makes everybody poorer. And if we don’t act to tackle inflation now, it’s going to cost families more in the long run, especially on their mortgage rates,” he stated.

Incidentally, two Tory chancellors from the Thatcher-Major era have already indicated that they endorse Sunak: Lord Lamont of Lerwick and, reportedly, Lord Lawson of Blaby.

Former British Prime Minister Margaret Thatcher

© AP Photo / Suzanne Vlamis

Rishi Sunak, who is of Indian heritage, likened Baroness Thatcher’s upbringing above her father’s grocery shop to his own childhood, when he helped out in his mother’s pharmacy.

“If you read her speeches – and I’ve quoted her and [former Tory chancellor] Nigel Lawson in other lectures I’ve given – her approach to these things was to make sure that as a nation you have to earn what you spend… She talked about the person at home with their family budget. She talked about that really powerfully. That resonated with me, because that’s how I was brought up,” Sunak, son of a pharmacist mother and GP father, said.

Asked if he expected to win a majority resembling that secured by Thatcher if the party picked him, Sunak replied:

“Everyone should be, I think, humble about comparing themselves with Margaret Thatcher. But look, in this particular instance, I do believe I’m best placed to restore trust, to rebuild the economy and reunite the country. I believe I can appeal in the broadest range of places.”

Sunak made no bones about his tax position, slamming the tax cuts promised by rivals as “fairy tales”.

The politician hinted that the corporation tax increase, from 19 percent now to 25 percent next April, would stay in place, as would the National Insurance rise and the 1p cut to the basic income tax due in 2024.

When asked how he would respond to those who, like the Brexit Opportunities minister, Jacob Rees-Mogg, brand him a “socialist chancellor”, Sunak said:

“I’d say I was also the chancellor that had to deal with a once-in-a-century pandemic, where borrowing and debt spiraled up to levels that we haven’t seen since the Second World War. And we should all remember that.”

Offering less clarity on spending, Sunak echoes the other candidates, vowing to shrink the size of the state and find government efficiencies.

“Over time, as we tackle inflation and grow the economy, then we can reduce the size of the state,” he said. Regarding the issue of welfare, Sunak said he hoped to encourage people to move from benefits into work.

Sunak, who has held three ministerial jobs: local government minister from 2018, chief secretary to the Treasury from 2019 and then chancellor from Feb 2020, doubled down on his defense spending stance. He is against an increase beyond the present two percent of GDP policy, which he referred to as a “floor”. His rivals have pledged increases of 2.5 percent, or even three percent.

When asked whether his whole family would be moving back into Downing Street if he wins the Tory leadership, the former chancellor quipped:

“I think that’s jumping ahead a bit!”

After nominations for the first stage on Tuesday, eight contenders have been left who were able to garner the support of at least 20 Tory MPs to make it to the next stage. Rishi Sunak, Penny Mordaunt, Tom Tugendhat, Liz Truss, Suella Braverman, Jeremy Hunt, Kemi Badenoch and Nadhim Zahawi remain in the race to be the next British Prime Minister, competing for the backing of Tory MPs to make the final shortlist of two before 21 July, when the House of Commons goes on summer recess.

These two will proceed to a full ballot of around 160,000 Conservative Party members over the summer, with the final result expected on 5 September.

The UK Prime Minister Margaret Thatcher at a press-conference during the official visit to the USSR

© Sputnik / Sergey Guneev

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Margaret Thatcher, nicknamed the “Iron Lady” in Russia for her perceived toughness, with the name then picked up by her supporters and critics at home, held the post from 1979 until 1990. She came to power when the economy was crippled by high inflation and showed three decades of poor performance relative to other western countries.

Her economic strategy was based on, first, control of inflation rather than the pursuit of full employment. Although Britain's relative decline came to an end, compared with countries such as France and Germany, the high interest rates and tight fiscal policy of the so-called Thatcherite monetarism pushed the economy into a deep recession and rendered more than 3Mln unemployed, analysts claim. She was forced out by a Conservative Party coup after rioting in Trafalgar Square over her unpopular poll tax.