Rishi Sunak scripts history, becomes Britain's first Indian-origin Prime Minister

London: Rishi Sunak on Tuesday scripted history when he was appointed by King Charles III as Britain's first Indian-origin Prime Minister after being elected unopposed as the new leader of the governing Conservative Party on Diwali.

The 42-year-old former Chancellor of Exchequer, a devout Hindu, is the youngest British prime minister in 210 years. He is also the first Hindu Prime Minister of Indian heritage in the UK.

In his first address as Tory leader soon after the result was declared on Monday, Sunak said his priority would be to bring the country together and said he was "humbled and honoured" to get the “greatest privilege” of his life to give back to the country “I owe so much”.

"The UK is a great country, but there is no doubt we face a profound economic challenge," said Sunak, with reference to the economic turmoil he is inheriting following former prime minister Liz Truss' disastrous tax-cutting mini-budget last month.

Sunak, the second prime minister in as many months and the third this year in Britain, will be moving into 10, Downing Street at a time when Britain's economy is facing a triple whammy of slowing growth, high inflation triggered by spiralling energy prices in the wake of the Ukraine war and a budget shortfall that has eroded its financial credibility internationally.

His first task will be to restore Britain's international financial credibility after outgoing leader Truss's plan for unfunded tax cuts and a costly energy price guarantee spooked the bond market.

He will have no option but to raise tax rates and make spending cuts that will be unpopular and may have unforeseen political consequences.