After Boris Johnson withdrew from the race on Sunday night, Sunak is expected to succeed Johnson and the markets breathed a sigh of relief, Rishi Sunak, a former chancellor, was on track to become the new prime minister of Britain on Monday.
After the likelihood of further imminent political and financial unrest decreased, the value of the pound increased on Monday. Johnson, who was having trouble gaining support, acknowledged that due to divisions among Tory MPs, even if he had won, he could not have ruled “effectively.”
Penny Mordaunt, the lone contender, is said to have less than 30 MPs on her side. To enter the race, a candidate must receive nominations from at least 100 MPs.
To let party members know which of the two options they want to win the race, MPs will hold an “indicative vote” later on Monday if Mordaunt crosses the necessary threshold. After that, party members would cast their votes online, and the outcome would be made public on Friday.
When returning from vacation in the Caribbean, Johnson hurried home to try to win the support of 100 lawmakers so that he could run against Truss, who succeeded him in September after he was forced to resign due to a series of scandals.
He claimed late on Sunday that he could have been “back in Downing Street” after winning the support of 102 lawmakers, but that he was unable to persuade Sunak or the other candidate, Mordaunt, to work together “for the national good.”
Johnson remarked, “I believe I have a lot to offer, but I’m afraid this simply isn’t the right time.”
By Sunday, the former prime minister had won the support of slightly under 60 Conservative lawmakers.
The support of two top Tories, including former skilling secretary Michael Gove and former home minister Priti Patel, helped Sunak’s campaign on Monday morning.
The leveling up secretary Simon Clarke and Welsh secretary Robert Buckland both backed the former chancellor.
Sunak is anticipated to be summoned by King Charles to form a government later on Monday if he ends up being the sole contender with 100 nominations, taking Liz Truss’ place in Number 10.
That sparked worries that Johnson could retake Downing Street with the support of party members rather than a majority of parliamentarians, further dividing the party. Late on Sunday, Hunt formally endorsed Sunak.
“I’ve never known this sort of rancor and division and it is very destabilizing,” stated Daniel Kawczynski, a Conservative lawmaker. “It is destabilizing for the party, and destabilizing for the country.”
A general election, according to seasoned Tory and Johnson supporter Sir Christopher Chope, is now the “sole solution” to regaining political credibility.
He said on Radio 4’s Today program: “The party is ungovernable in the House of Commons, so we’re going to have continual rebellions as we try to modify policies and so on.”
Although Jeremy Hunt, the incoming chancellor, is expected to present a fresh debt-cutting plan on October 31, Sunak is viewed by the markets as being more devoted to prudent economic management and more likely to oversee improved ties with the EU than Johnson.
After Johnson withdrew from the competition, Sterling made a solid start to the week. In early London trading, the pound rose 0.3 percent versus the dollar to hit $1.1336 and 0.6 percent against the euro to hit €1.1525.
Johnson’s departure, according to Ulrich Leuchtmann, head of currency research at Commerzbank, eliminated one of the political dangers that had been looming over the value of the pound sterling. He claimed that Johnson’s election as prime minister again may have led to an increase in hostilities with Europe over post-Brexit deals.
“In addition to all the monetary and fiscal policy risks of the past weeks the one major factor still putting pressure on sterling remains Brexit and its consequences,” Leuchtmann added.
Johnson asserted that had he appealed to the party membership, he could have won the election but chose to abstain in the greatest advantage of the Conservative party and the country.
He claimed: “There is a very good chance that I would be successful in the election with Conservative party members — and that I could indeed be back in Downing Street on Friday.
“But in the course of the last days, I have sadly come to the conclusion that this would simply not be the right thing to do. You can’t govern effectively unless you have a united party in parliament.”