Nadhim Zahawi, UK chancellor vows to fight inflation

• Nadhim Zahawi, UK chancellor vows to reduce inflation and rule out borrowing for tax cuts.
• Zahawi will also embrace Sunak’s idea for a fundamental revamp of post-Brexit financial regulation.
• New prime minister likely to install their own pick as chancellor on September 5.

The new  UK chancellor, Nadhim Zahawi, will vow to reduce inflation and rule out borrowing for tax cuts on Tuesday, indicating that he will continue the fiscal policies of his predecessor, Rishi Sunak.

In his first speech since being appointed, Zahawi will also embrace Sunak’s idea for a fundamental revamp of post-Brexit financial regulation to guarantee that Britain remains “one of the world’s most dynamic financial centres.”

Sunak resigned earlier this month in protest of the leadership style of departing prime minister Boris Johnson and over differences in economic strategy, particularly Johnson’s emphasis on tax cuts.

Zahawi was immediately appointed to replace Sunak, but the new chancellor will emphasise in his Mansion House speech in the City of London that combating inflation remains the government’s top goal.

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“The country should feel confident that we can, and we will, get inflation back under control,” he will say.

“That means delivering sound public finances to avoid pushing up demand still further, providing help for households as they deal with the worst price rises in over a generation.”

Zahawi’s stint as chancellor may be brief; a new prime minister will likely install their own pick as chancellor on September 5.

In the meanwhile, Zahawi’s Mansion House address will show that Sunak’s policies will continue, not only with regard to combating inflation but also with regard to revamping City regulation.