New UK finance minister to promise to control inflation

• Nadhim Zahawi takes over as Chancellor of the Exchequer after Rishi Sunak’s resignation.
• Zahawi pledges to “control inflation, boost private sector recovery and deliver a post-Brexit vision for financial services”.
• Comments will fuel fears of showdown with Bank of England.

New UK Finance Minister Nadhim Zahawi will outline his plans to control inflation and “seize the opportunities of Brexit” on Tuesday, Despite concerns that London is going too far in deregulation.

In the midst of a tumultuous political period in Britain, Zahawi, who took over as Chancellor of the Exchequer after Rishi Sunak resigned earlier this month, will lay out his vision in his first speech as Chancellor of the Exchequer at London’s Mansion House.

Sunak’s departure alongside other government figures led to Prime Minister Boris Johnson’s resignation and now a bitter fight is playing out to become the next leader.

Zahawi will hope to push that all aside when he addresses London’s business representatives, promising to “control inflation, boost private sector recovery and deliver a post-Brexit vision for financial services”, the finance ministry said.

The minister will commit to “repeal hundreds of pieces of retained EU law and replacing them with a coherent and agile approach to financial regulation that is right for us” in Britain, the ministry added in a statement.

Zahawi subscribes to the same view as his predecessor, Sunak — a candidate running to take over from Johnson — who had promised a new “Big Bang” in the finance sector after the deregulation of the 1980s.

The statements will fuel fears of a showdown with the Bank of England, while some media reports say the government will seek to reduce regulators’ powers.

Bank of England officials including governor Andrew Bailey have defended the institution’s independence after criticism over being too timid in the fight against inflation.

UK inflation spiked in May to a 40-year peak of 9.1 percent, a level set to hit double figures this year.

In June, a parliamentary report warned against “any inappropriate weakening of the United Kingdom’s strong regulatory standards,” which could “reduce the financial resilience of the United Kingdom’s financial system and undermine international confidence in that system.”

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