Deputy PM's Resignation Could Dent Sunak Momentum

Deputy Prime Minister and Justice Secretary Dominic Raab has resigned ahead of the publication of a report investigating claims of he bullied staff while at several ministerial departments. This is not a market-moving event, but could serve to dent some of the recent momentum gained by Prime Minister Rishi Sunak.

• Negative headlines around the conduct of Raab - a close ally of Sunak who spearheaded the now-PM's unsuccessful leadership campaign in summer 2022 - come less than two weeks ahead of local elections in England and could put the brakes on any positive momentum.
• The finalisation of the Windsor Framework to resolve issues in the Northern Ireland protocol has taken Brexit off the front pages, while legislation intended to deal with small boat migrant arrivals across the English Channel has boosted the gov'ts support among its conservative base.
• Opinion polling shows Sunak's centre-right Conservatives consistently trailing Sir Keir Starmer's centre-left Labour party. However, the gap had shrunk from around 25% in autumn of 2022 to around 15% presently. Sunak was also beginning to regain ground in polls for who would make the best PM.