New PM To Face Difficult First Month As Public Turns On Handling Of Economy

Latest opinion polling from Redfield and Wilton Strategies shows public approval of the gov'ts handling of the economy plummeting as inflationary pressures take their toll on household finances.

• Government Policy Net Approval Ratings (21 August): Coronavirus Pandemic +12% (–), Defence +2% (-2), Foreign Policy -8% (-3), Education -11% (-2), Housing -26% (-7), Immigration -26% (-2), The NHS -29% (-7), The Economy -34% (-12). Changes +/- 14 August. 2,000 respondents
• Top of the list of issues for the incoming PM will be addressing these declining ratings, with the Conservatives having previously campaigned hard on the party's claims of economic credibility.
• The new PM comes into office on 5 September succeeding Boris Johnson, who has intentionally not made any major policy moves this summer, instead stating that significant decisions will be left to the next leader.
• Polling and betting markets show Foreign Secretary Liz Truss as the strong favourite to win the Conservative Party leadership contest over former Chancellor Rishi Sunak. Truss is given a 93.5% implied probability of winning according to data from Smarkets.
• The sharp decline in public approval of the gov'ts handling of the economy will likely see some form of rapid action to address the slide once the new administration arrives at 10 Downing Street. In the likely event it is Truss that becomes PM it is unclear, though, what this action could be, as during the campaign she has talked down the idea of 'handouts' to support households dealing with rising expenditures.

Source: Smarkets