Post-Brexit Innovation, Digital Transformation Policies Could Decide UK’s Next PM

Beset by scandals and following critical electoral defeats last month, Boris Johnson announced last week that he would be stepping down as prime minister of the United Kingdom, triggering a leadership race among the Tory party.

Read more: UK’s Boris Johnson Resignation May Delay Crypto, BNPL Legislation

As things stand, 11 hopefuls have thrown their hat into the ring. Some are familiar faces of British politics, while others are less well-known outsiders who have never held a ministerial position.

While no one can rule out an underdog, PYMNTS gives a rundown of three potential leaders who are known on the international stage and delves into their records on the topics of innovation, technology, and digital transformation.

Rishi Sunak

Former Chancellor of the Exchequer Rishi Sunak is currently the bookies’ favorite to win the leadership race. But having made more than a few enemies in his years as chancellor, not to mention his role in Johnson’s downfall, Sunak will have to overcome fierce opposition if he is to emerge as victor.

From a business perspective, although rivals are painting Sunak as a high tax candidate, he has been a proponent of post-Brexit freeports and as Chancellor stated that he would lower income and corporation tax in the future when the time is right.

A long-time champion of small businesses, one of Sunak’s more interesting ideas can be found in a 2017 report in which he advocated for the creation of a bond market for small and medium-sized enterprises (SMEs).

At the time, he wrote in the Yorkshire Post that “the British lending market is heavily over-reliant on big banks,” and that SMEs could benefit from a framework for issuing bonds at a smaller scale than what businesses currently borrow on the U.K.’s bond market.

Since entering Boris Johnson’s government in 2019, Sunak’s bond market has remained an unrealized dream, but if he were to become Prime Minister, the idea may resurface.

In April, Sunak outlined his “ambition to make the UK a global hub for cryptoasset technology.”

Related: UK Treasury to Introduce Stablecoin Regulation Within Weeks

The plan includes a proposal to regulate stablecoins as a recognized form of payment, the establishment of a financial market infrastructure sandbox and the Cryptoasset Engagement Group to open space for experimentation and dialogue surrounding the technology and its role in the U.K.’s economy.

Read more: UK Government Wants Bank of England to Regulate at-Risk Stablecoins

Sunak’s vocal support of stablecoins sets the stage for future opposition from the more cautious stance of the Bank of England.

Liz Truss

One of the most experienced candidates in the running, Liz Truss has held a range of ministerial positions under David Cameron, Theresa May and Boris Johnson.

Truss announced her candidacy in an article published in The Telegraph on Sunday (July 10). In it she said that she would cut corporation tax, reverse Sunak’s National Insurance rise and overhaul business rates. Promising to repeal the National Insurance rise is proving to be a popular move among leadership hopefuls and it is likely to appeal to the Tory base.

The statements are typical of Truss’ economic position, where she has long advocated for the free market ideals of low tax and light-touch regulation.

During her tenure as International Trade Secretary (2019–2021), Truss oversaw the future trade strategy intended to boost the U.K.’s position as a “tech powerhouse,” a phrase popularized by Truss that has become a mantra of the current government.

When launching the strategy at London Tech Week in 2020, Truss said, “I want the U.K. to be the leading global voice in digital trade and the intellectual driving force in the space.”

Related: Cloud Banking Takes Center Stage at London Tech Week

In 2021, at an event celebrating Scotland’s FinTech sector, Truss said, “The U.K. is a world leader in FinTech and that’s why we’re breaking down barriers, pushing new frontiers in our free trade agreements and opening up markets to boost this growing industry … we are using our independent trade policy to drive foreign investment into U.K. FinTech and increase export opportunities worldwide.”

Sajid Javid

Like Truss, Sajid Javid has held a number of government roles throughout the Cameron, May and Johnson years.

Among the leadership contenders, Javid is considered to belong to the moderate wing of the conservative party, an indication of just how far its Overton window has moved since 2015 when the Financial Times called him “the most the most robust right-winger in the cabinet.”

In his more recent role as health secretary, Javid prioritized digitizing the country’s national health service (NHS) and emphasized the role of digital technologies in the post-pandemic delivery of health services.

In a speech made in February, Javid said that “digital transformation is not something that you can delegate. It must be led from the front.”

His major contribution to the strategic direction of the NHS has been a restructuring of its digital leadership components. He also accelerated the rollout of electronic patient records and digital social care records.

An Open Field

Which, if any, of the above three candidates survive the coming parliamentary votes is by no means set in stone. Scars from the Brexit referendum run deep in the Conservative party and many are calling for a fresh face, untainted by the bitter infighting of recent years.

Whether MPs opt for new blood or a known figure, the ultimate decision will be made by the Tory party at large, once the field is whittled down to a final two in successive voting rounds.

Between Sunak’s crypto hub, Truss’ tech powerhouse and Javid’s digital NHS, it looks like technology and innovation will be key battlegrounds in the coming hustings. If they are to win the support of party members, candidates will need to paint a convincing picture of the U.K.’s digital future and their plans to support the country’s tech sector.

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