‘No shortage of challenges’ awaiting new British Prime Minister Rishi Sunak

The Australian government has welcomed new UK Prime Minister Rishi Sunak but warned he faces “no shortage of challenges”.

The Australian government has hailed the significance of Rishi Sunak’s ascension to the British prime ministership following his “commitment” and “persistence” to obtain the role.

Mr Sunak won the UK Conservative Party‘s leadership overnight and will become the country’s first prime minister of Indian descent after his predecessor Liz Truss resigned following a disastrous 45-day term.

Ahead of Labor handing down its first budget in almost a decade, Australian Treasurer Jim Chalmers specifically mentioned Mr Sunak in his last public appearance before his budget speech.

“Rishi Sunak is a friend of Australia as the UK is a friend of Australia. We congratulate him on his elevation to the Prime Ministership,” he said on Tuesday.

New Conservative Party leader and incoming prime minister Rishi Sunak. Picture: Jeff J Mitchell/Getty Images

“The UK, like Australia, has no shortage of challenges and no shortage of economic challenges, so we wish Rishi Sunak well.”

Mr Chalmers spoke positively of his previous interactions with Mr Sunak after he missed out on the Conservative Party’s leadership to Ms Truss.

“Some of us had the opportunity to work with him briefly when we first came to government. I was able to exchange messages with him when he was unsuccessful in the last leadership ballot,” he said.

“I think it says something about his commitment and his persistence the way that he conducted himself in the interim.”

He also acknowledged the significance of Mr Sunak being Britain’s first prime minister of colour, while Mr Chalmers, 44, marvelled at the 42-year-old’s quick rise to power.

“I don’t think it’s insignificant that a country like the UK has its first prime minister of colour,” he said.

Treasurer Jim Chalmers praised Rishi Sunak’s “commitment” and “persistence”. Picture: NCA NewsWire / Gary Ramage

“For those of us who are used to being at the younger end of the spectrum, his age is also quite a thing.”

Mr Chalmers added he was “personally look forward to working with” whoever was named as chancellor of the exchequer.

Jeremy Hunt, the current UK chancellor, took on the role after Kwasi Kwarteng was forced to resign following a catastrophic mini-budget that plunged the country’s economy and government into chaos.

On the budget the Australian government will be handing own on Tuesday, Mr Chalmers said inflation would be the “primary influence”.

“Inflation will be the primary influence on the budget I hand down tonight,” he said.

“The budget has three objectives: responsible cost of living relief, strengthening the economy and beginning the hard yards of budget repair.

“This government will be solid, sensible and suited to the times. It will recognise in a time of extreme global uncertainty our best defence is a responsible budget at home. It will understand, that even these economic pressures are coming from around the world they’re felt most acutely around the kitchen table.”

Labor will hand down its first budget in almost a decade on Tuesday. Picture: NCA NewsWire / Gary Ramage

On if Labor will keep its promises from its budget reply from earlier in the year, he said the government would “implement the commitments we made”.

“Those commitments around cheaper childcare, those commitments around cheaper medicines, investing in skills, in cleaner, cheaper, more reliable sources of energy, they will be central components of the budget I hand down,” Mr Chalmers said.

Anthony Albanese said the government would deliver a “family friendly” budget with a priority on measures that would boost the economy and productivity.

“It will be delivering on our commitments. It will be strengthening our economy, providing cost-of-living relief for families without putting pressure on inflation,” he said.

“You’ll see a delivery of the strong commitment we gave to cheaper childcare during the election campaign, which arose from my first budget reply. You’ll also see paid parental leave.

“We want an economy that grows but grows in a way that takes pressure off families by not adding to inflation and that’s why tonight’s budget will deliver for working families.”

Shadow treasurer Angus Taylor said what the opposition had seen and heard about the budget was ‘disappointing’ Picture: NCA NewsWire / Gary Ramage

But shadow treasurer Angus Taylor said what the opposition had seen and heard so far had been “disappointing”.

“So far what we’ve seen is that in the budget there will be a deteriorating jobs market, deteriorating economy, deteriorating deficit, no material gains in real wages in this term in government, and we know Labor is walking away from their promise to reduce electricity bills,” he said.

“All Australians want to see a clear and comprehensive plan to deal with those pressures they’re facing and to consolidate the position that Labor inherited, we want to see a successful budget.

“We’ve laid out very clearly what we think a strong budget and a clear and comprehensive plan looks like.

“It’s a plan that deals with those cost of living challenges that Australians are facing with a responsible budget. We’re getting more labour supply into the market, more pensioners working. We’ve laid out how important it is to have a platform for longer term growth, lower taxes.”

But he said the opposition would back Labor’s budget if it met those criteria.

“If Labor has a plan that can meet those tests we’ll back it in, there’s no question about it,” Mr Taylor said.

“Everyone in Australia is barracking for a stronger, more prosperous Australia and a budget that’s going to deliver a stronger and more prosperous Australia is one we will back every day of the week. So this is not about partisanship, this is about the nation.”

Originally published as ‘No shortage of challenges’ awaiting new British Prime Minister Rishi Sunak