Sky's EdConwaySky takes a look at the economic challenges the incoming PM faces 👇
For if there is one thing that really decides the fate of new prime ministers - more than poll ratings or party support or indeed whether GDP is going up or down - it is the support of investors.Yet if market confidence evaporates, then they, and we, would end up in real trouble. This country, like it or not, relies on what Mark Carney once called the"kindness of strangers" - those faceless international investors who finance our enormous budget and current account deficits.
That's fine as long as they're happy to keep on putting money into the UK, but much less fine if they suddenly change their minds. All of which explains why the likely new chancellor, Kwasi Kwarteng, wrote in the investors' in-house journal, the Financial Times, today that the new administration would act in a"fiscally responsible way".
As an economic historian, he is well aware that Britain's post-war economic disease has been repeated sterling crises: from 1931 to 1949 to 1967 and 1992, there have been recurrent episodes when the country has lost the faith of international investors and been forced into embarrassing and painful economic adjustments.
The current challenges facing Ms Truss's administration are about as serious as any her predecessors faced. How she deals with them will define her tenancy in Number 10.
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