Rishi Sunak to become Britain's new PM, warns of 'profound economic challenge’

Britain faces serious economic challenges and needs stability and unity, Rishi Sunak said on Monday, in his first public speech after being declared leader of the governing Conservative Party and soon-to-be prime minister.

"There is no doubt we face a profound economic challenge," Sunak said. "We now need stability and unity, and I will make it my utmost priority to bring our party and our country together."

The 42-year old will become the country's third prime minister in less than two months, after his predecessor, Liz Truss, was brought down after just six weeks in office by an economic programme that roiled markets.

However Sunak’s premiership unfolds, there are likely to be more difficult times ahead for the UK economy as it grapples its way out of a worsening downturn and even the prospect of a general election – upheaval which could derail the markets further.

UK government borrowing surged and retail sales slumped in September, official data showed on Friday, while the British pound sank against the US dollar on political uncertainty after the resignation of Liz Truss.

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