Key Points
- Britain's third prime minister in seven weeks is making history on a number fronts.
- Rishi Sunak is the first person of colour to be UK Prime Minister.
Australian Treasurer Jim Chalmers has lauded the significance of Britain being about to have its first prime minister of Asian descent.
Rishi Sunak has been named leader of the Conservative Party after Liz Truss resigned from the prime ministership, paving the way for him to take the nation's top job.
Mr Chalmers called Mr Sunak a great friend of Australia and congratulated him.
"I don't think it's insignificant a country like the United Kingdom has its first prime minister of colour," he said on Tuesday.
"The UK, like Australia, has no shortage of challenges and no shortage of economic challenges.
"So, we wish Rishi Sunak well. I personally look forward to working with whoever he names as chancellor of the exchequer."
Mr Chalmers said he exchanged messages with the incoming prime minister after he was unsuccessful in the last leadership ballot against Ms Truss.
"It says something about his commitment and his persistence, the way that he conducted himself in the interim," Mr Chalmers said.
Rishi Sunak vows to fix 'mistakes' of Liz Truss
Rishi Sunak is Britain's third prime minister this year and the first person of colour to lead the former imperial power.
In his first speech as the country's new leader, he vowed to overcome economic crisis provoked by the "mistakes" of Liz Truss's calamitous 49-day tenure.
In his first order of business, Mr Sunak retained Jeremy Hunt as chancellor of the exchequer, bidding to keep financial markets on side after Truss's budget plans shocked investors, and also retained her foreign and defence ministers.
Mr Sunak, a practising Hindu who at 42 is Britain's youngest leader since 1812, became the ruling Conservatives' new leader on Monday after a prior stint as chancellor himself.
Addressing the nation in Downing Street on Tuesday shortly after his appointment by King Charles III, Mr Sunak said the country faced "profound economic crisis".
"I will unite our country - not with words, but with action," Mr Sunak said, capping the latest extraordinary twist in UK politics following Boris Johnson's demise in July.
Departing shortly before, Ms Truss wished him "every success" - and said she remained "more convinced than ever" that Britain needed to be "bold" in confronting the challenges it faced.
Mr Sunak countered that though she was motivated by a well-intentioned desire to kick-start growth, her tax-cutting measures were "mistakes nonetheless".
"And I have been elected as leader of my party and your prime minister in part to fix them," he said.
"And that work begins immediately. I will place economic stability and confidence at the heart of this government's agenda," he added, helping to drive the pound more than one percent higher against the dollar.
New cabinet appointed
Mr Sunak also issued a coded reminder of the many scandals that brought former prime minister Boris Johnson down, vowing his own premiership would offer "integrity, professionalism and accountability at every level".
In other cabinet designations, Mr Sunak retained James Cleverly as foreign secretary and Ben Wallace in the defence brief, underscoring stability along with Hunt's re-appointment.
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Just days after she was forced out of Ms Truss's cabinet, hardline right-winger Suella Braverman was re-appointed as interior minister, in charge of policing and immigration control.
Grant Shapps, who had briefly replaced Braverman at the Home Office, was named business secretary with partial oversight of climate policy, instead of Johnson loyalist Jacob Rees-Mogg.
Mr Sunak brought close ally Dominic Raab back as deputy prime minister and justice secretary.
'Groundbreaking'
In his Downing Street speech, Mr Sunak pledged unstinting support for Ukraine even while warning of "difficult" budget choices ahead.
US President Joe Biden called the appointment of the first British-Indian prime minister "groundbreaking" and "pretty outstanding".
"Together, I look forward to enhancing our cooperation on issues critical to global security and prosperity, including continuing our strong support for Ukraine," Mr Biden said in a tweet.
European leaders offered their own congratulations, while Irish premier Micheal Martin reminded Mr Sunak of their "shared responsibility" to safeguard peace in Northern Ireland following tensions under Johnson and Truss.
Labour leader Keir Starmer praised Mr Sunak on "making history as the first British-Asian PM".
But he added: "The Tories have crashed the economy, with low wages, high prices and a cost-of-living crisis. The public needs a fresh start and a say on Britain's future."
Mr Sunak has rebuffed opposition calls for a snap general election after becoming the latest leader who lacks a direct mandate from the electorate, but he promised to govern on the basis of the 2019 manifesto.
Congratulations was also forthcoming from the leaders of Nigeria and India.
Nigerian President Muhammadu Buhari said that with Mr Sunak "as the first Prime Minister of British-Asian descent and the youngest in about 200 years, these milestones will be especially inspiring for young people" in the Commonwealth, the association mostly of former British colonies.
"We seek to deepen our partnership with Britain" to address challenges including terrorism, food insecurity, energy and climate change, Mr Buhari added.
Indian Prime Minister Narendra Modi did not wait for Sunak to be officially appointed, sending congratulations via Twitter on Monday.
"As you become UK PM, I look forward to working closely together on global issues," Mr Modi wrote.
"Special Diwali wishes to the 'living bridge' of UK Indians, as we transform our historic ties into a modern partnership," he added.
Mr Sunak is married to an Indian, Akshata Murty, the daughter of the co-founder of IT giant Infosys.
