United Kingdom’s new prime minister Rishi Sunak and his wife Akshata Murty have a combined fortune of $823 million, according to Sunday Times Rich List and are wealthier than King Charles. But the question on everyone’s mind is whether Sunak’s extensive financial background will be a boon or bane for the UK’s middle class struggling with soaring inflation
By Link News Network
The South Asian community of UK got its best Diwali gift. This year, the holiday aligned with Rishi Sunak, 42, becoming Britain’s first prime minister of Indian descent as they celebrated the festival of lights.
Sunak comes with many firsts. He is Britain’s first prime minister of color, first Indian-origin person to lead the country, the first person to lead the UK who professes a faith other than Christianity, the first person of Hindu religion and the youngest prime minister to take power in more than 200 years.
But Sunak’s most discussed trait is that he is the wealthiest person to ever become the Prime Minister of the UK. Britain has been ruled by rich people, as quoted in Washington Post recently, “Boris Johnson was about as elite as they come — but Sunak is not just rich, he is super rich, which has prompted some to ask whether his vast fortune makes him too rich to be prime minister.”
A survey published, this week, by political researchers Savanta ComRes asked voters to describe Rishi Sunak in one word, and the word RICH was the most common choice.
If we talk about his wealth and fortune, Sunak, is a former banker, and his wife, Akshata Murty, is the daughter of India’s tech giant, the owner and founder of Infosys Narayan Murthy. According to the Sunday Times Rich List they have an estimated fortune of about 730 million pounds ($830 million). The 2022 list, which was published before the death of Queen Elizabeth II estimated her fortune at 370 million pounds ($420 million).
The story of Sunak’s journey towards acquiring this massive fortune is interesting, as unlike his wife, he does not come from a wealthy background.
He was born in Southampton, a small port city on the south coast of England, to parents of Indian descent Yashvir and Usha Sunak, who migrated to Britain from East Africa in the 1960s. His father was a family GP and mother ran her own local chemist shop. He was educated at Winchester College, the at Lincoln College, Oxford, and earned an MBA from Stanford University as a Fulbright Scholar.
It was at Stanford, he met his future wife Akshata Murty. Sunak worked for Goldman Sachs and later as a partner at the hedge fund firms The Children’s Investment Fund Management and Theleme Partners.
He arrived at Britain’s political scene in 2015 from North Yorkshire seat of Richmond and then was re elected in 2017 and 2019. In July 2019 he was appointed Chief Secretary to the Treasury and in February 2020, he was appointed Chancellor of the Exchequer, a position he held until July 2022.
This week, Sunak won the race to become PM after Britain’s shortest serving Prime Minister Liz Truss resigned and Penny Mordaunt withdrew from the Conservative Party leadership contest having failed to gain the backing of enough MPs to stand against him.
Sunak’s appointment at the top post in UK have invoked mixed emotions across the world and especially in UK. On one hand Indian diaspora is celebrating his victory but many are questioning whether Sunak can justify the job he has been appointed to?
He is facing challenges over his elite background. If some think that he being a trade man, the one who knows how to earn money, can save UK’s economy which is edging towards recession with his policies. Some feel, that him being rich places him at a position where he is completely out of sync and will not be able to relate with the struggles of the UK’s middle class.
Sunak is known for his wealth, expensive education and elite taste in fashion. Sunak has also been scrutinized over the tax arrangements of his wife Akshata Murthy.
Althouh Sunak has stressed that he was not born rich. As a youth, he delivered medicines from his mother’s pharmacy and worked as a waiter in an Indian restaurant. “My parents sacrificed a great deal so I could attend good schools. I was lucky to study at Winchester College, Oxford University and Stanford University. That experience changed my life and as a result I am passionate about ensuring everybody has access to a great education.”
He worked his way up to earn money and knows how it is done. “I have been fortunate to enjoy a successful business career. I co-founded a large investment firm, working with companies from Silicon Valley to Bangalore. Then I used that experience to help small and entrepreneurial British companies grow successfully. From working in my mum’s tiny chemist shop to my experience building large businesses, I have seen first-hand how politicians should support free enterprise and innovation to ensure our future prosperity,” he said on his website.
Sunak gained public popularity during the pandemic, when as Treasury chief he spent billions helping laid-off workers and shuttered businesses stay afloat. “During the pandemic, Sunak put in place measures worth £400 billion ($452 billion) aimed at boosting the economy, including a generous furlough scheme, business loans and discounts on eating in restaurants. But that stimulus came at a huge cost and left the government scrambling to find savings,” according to CNN.
The CNN also reported that Sunak was an early critic of Truss’ economic plan, which was panned by investors, the International Monetary Fund and credit ratings agencies. While he also advocated for lower taxes, he said tax could only be cut once inflation is brought under control, which could take several years.
“His warning over the summer that Truss’ unfunded tax cuts could spark panic in the financial markets turned out to be true. The British pound crashed to a record low against the US dollar when Truss and her Chancellor Kwasi Kwarteng unveiled their plan. Prices of UK government bonds rose at the fastest pace ever, sending borrowing costs skyrocketing.”
Speaking after being declared the new Conservative leader, Sunak said he was “honored and humbled” to become the next prime minister.
“It is the greatest privilege of my life to be able to serve the party I love, and to be able to give back to the country I owe so much to,” Sunak said.
“The United Kingdom is a great country, but there is no doubt we face a profound economic challenge,” he added. “We need stability and unity, and I will make it my utmost priority to bring our party and our country together.”
Sunak faces an enormous task. The UK is in the midst of a deep cost-of-living crisis and soaring inequality. Financial markets are still spooked after Truss’ disastrous economic policy missteps, CNN mentions.
