terling rose on news of Boris Johnson’s resignation on Thursday, as business chiefs called for leadership and tax cuts to boost the UK’s faltering economy.
Shortly after Mr Johnson’s resignation bombshell hit dealing screens in the City, the pound was up around half a cent against the dollar at $1.1972 before falling back slightly.
The FTSE 100 index was also trading higher, up 80.58 points at 7188.35.
Walid Koudmani, chief market analyst at financial brokerage XTB, said: “The resignation of Boris Johnson will breathe a sigh of relief for UK investors as it curtails the uncertainty of a government in name only.
“Make no mistake however, the GBP remains severely weak due to the dire state of the UK economy which is underperforming its peers, likely to enter into a recession while the Bank of England refuses to hike interest rates aggressively to deal with the escalating inflation. The new prime minister — whoever that is — has a massive job on their hands.”
READ MOREFTSE 100: Markets cling on with big oil betsUK has already hit ‘stage three’ of a property downturnLloyd’s of London stays put in boost to the CitySPONSORED
Why you need to explore Türkiye’s Dalaman region for yourself Simon Dawson / No10 Downing StreetThe market reaction came as the former head of the CBI called on new Chancellor Nadhim Zahawi to urgently slash taxes to boost investment and support struggling businesses.
Lord Bilimoria, the founder of the beer brand Cobra and ex-president of the Confederation of British Industry, said the world was looking at the UK and wondering what the country was doing.
“We need to cut taxes,” he told the BBC. “We’ve got the highest tax burden in 70 years. It’s absolutely the wrong thing to have at this time, at any time, let alone at a time like this when business needs help, and consumers are really squeezed.
“There has been some help by the previous chancellor. But businesses are not getting any help apart from a little bit of business rates relief. And the whole world is now looking at the UK and saying what is this great country doing and with the political turmoil, the mess that we’re in now with desperate businesses crying out for leadership, crying out for the Government to focus on growth and investment.”
Mr Zahawi was appointed Chancellor following the departure of Rishi Sunak on Tuesday night. Despite supporting Mr Johnson on Wednesday, Mr Zahawi this morning released a letter on social media calling for him to resign.
Boris Johnson – In pictures1/102Boris Johnson – In pictures
Prime Minister Boris Johnson takes part in archery during a visit to the Premier Education Summer Camp at Sacred Heart of Mary Girl’s School, Upminster in Essex.
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Britain’s Prime Minister and Conservative Party leader Boris Johnson holds his dog Dilyn as he leaves after voting in the general election at Methodist Central Hall, Westminster, London, Thursday, Dec. 12, 2019.
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Britain’s Prime Minister Boris Johnson, center, poses with Sadhus, or Hindu holy men, in front of the Swaminarayan Akshardham temple, in Gandhinagar, part of his two-day trip to India, Thursday, April 21, 2022.
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Boris Johnson jogging
Jeremy Selwyn
Prime Minister Boris Johnson being given instructions how to build a brick wall during a visit to Exeter College. Boris Johnson will publicly announce his resignation later today, likely before lunchtime, the BBC is reporting.
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Prime Minister Boris Johnson holding crabs caught on the Carvela at Stromness Harbour in Stromness during a visit to the Highlands and Northern Isles of Scotland.
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Prime Minister Boris Johnson joining children playing with construction toys during a visit to The Discovery School in West Malling, Kent.
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rime Minister Boris Johnson and his partner Carrie Symonds, in Downing Street, London, to join in the applause to salute local heroes during Thursday’s nationwide Clap for Carers to recognise and support NHS workers
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Prime Minister Boris Johnson blowing glass prior to chairing a cabinet meeting at National Glass Centre at the University of Sunderland
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Prime Minister Boris Johnson welcoming members of the Chinese community at 10 Downing Street, London
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Colliding with 10-year-old Toki Sekiguchi during a game of Street Rugby with a group of Tokyo children, outside the Tokyo Square Gardens building in October 2015
Issei Kato/Reuters
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Higher office: Infamously left dangling from a zipwire in London’s Victoria Par during a publicity stunt at a public viewing area for the Olympic Games in 2012
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Boris Johnson and wife Carrie on their wedding day (Rebecca Fulton/PA)
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Queen Elizabeth II welcoming the newly-elected leader of the Conservative Party Boris Johnson during an audience in Buckingham Palace
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Greek minister for culture Melina Mercouri speaks with the then President of the Oxford Union before she addressed the Union on the subject of the Elgin Marbles in 1986
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Hammertime: About to place a pavement stone at King’s Cross Square in August 2013
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As Henley MP and editor of the Spectator, Boris cuts an eye-catching figure after a morning jog in 2004
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An apologetic Boris after fouling Maurizio Gaudino of Germany during the Legends match between England and Germany at The Madejski Stadium in May 2006 in Reading
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On the campaign trail to be mayor, Boris is dressed in a shawl by local community members during his visit to the Husseini Mosque in Northholt in April 2008
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Wears a pink cowboy hat at London’s Gay Pride parade in July 2008
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With two knights at Leadenhall Market, London for St George’s Day in 2009
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Waving the Olympic flag during the closing ceremony of the 2008 Beijing Olympic Games at the “Bird’s Nest” National Stadium in August 2008
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Posing with a wax figure of himself as it is unveiled at the Madame Tussauds waxwork museum in May 2009 (Boris is on the left!)
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With a group of Indian Dancers at the opening of the new East London overground rail link at Dalston Junction in April 2010
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Unveiling artists’ impressions of the design for London’s new Routemaster bus in May 2010
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Celebrating the 2010 Chinese New Year
Jeremy Selwyn
Promoting the launch of London’s cycle hire scheme
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Taking on school children at table tennis in Bermondsey Square in June 2010
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Showing his artistic side with a cartoon in City Hall while meeting a group of newspaper cartoonists in 2010
Jeremy Selwyn
Blowing a Vuvuzela in Cape Town, South Africa during the 2010 World Cup
Jeremy Selwyn
Strumming along with musician Newton Faulkner to highlight the capital’s Rhythm of London underground busking competition in March 2011
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I’ll be bike: Cycling with former Governor of California and Terminator star Arnold Schwarzenegger in March 2011
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Michel Platini hands over the UEFA Champions League trophy ahead of the 2011 final at Wembley
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With members of Notting Hill Carnival band Genesis in August 2011
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Greeting Holly Butlin while meeting voters in Richmond after launching his bid to be re-elected as Mayor in April 2012
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On the Underground after casting his vote in the local elections at a polling station in May 2012
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Posing for photographers in the dining area of the London 2012 Olympic Athletes Village in the Olympic Park in July 2012
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Addressing a press conference entitled ‘Delivering a lasting legacy from the London 2012 Games’ in August 2012
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With Prime Minister David Cameron as the Olympic cauldron is lit for the Paralympic Games in Trafalgar Square in August 2012
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Playing sitting volleyball with actress Barbara Windsor during the 2012 Paralympic Games at ExCel
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Captured watching the beach volleyball at the London 2012 Olympics
Jeremy Selwyn
Launching the new Overground service from Clapham Junction to Canada Water in 2012
Jeremy Selwyn
Having a school dinner at the Reach Academy, Feltham with five-year-old Emmanuel in 2013
Jeremy Selwyn
Ready for action at the the NatWest CricketForce event at Harrow Town CC Ground in April 2013
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Taking his shot during a photocall in central London to promote the 2013 Euroleague Final Four
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Kissing saltwater crocodile George, at Darwin International Airport, Australia in 2013
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In action during the Rally Against Cancer charity match on day seven of the AEGON Championships at Queens Club in June 2013
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Using a ‘vibrating poker’ on freshly poured concrete at the construction site of the ‘Greenwich Square’ housing development in November 2013
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With Prime Minister David Cameron during a visit to a Crossrail construction site beneath Tottenham Court Road in January 2014
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Launching the World Wheelchair Rugby Challenge in May 2014
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Again with David Cameron, this time meeting apprentices and students during a visit to Harrow Skills Centre as they took to the campaign trail together in May 2014
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Shearing a sheep, with the help of New Zealand’s most successful competition sheep shearer David Fagan, on a visit to Stonehouse, Gloucestershire, in May 2014
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Donning traditional headdress during a visit to the Shree Swaminarayan Mandir, a major new Hindu temple being built in Kingsbury, in May 2014
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Rory McIlroy looks on as Boris Johnson launches the Santander 1|2|3 World at Potters Field, Tower Bridge in September 2014
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Addressing delegates at the 2014 Conservative Party conference in Birmingham, with the aid of a brick
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Raising funds to launch London Poppy Day at Liverpool Street Station with Brian Blessed in a call to Londoners to help raise over £1m in October 2014
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Political heavyweight: Boxing with a trainer during his visit to Fight for Peace Academy in Woolwich in October 2014
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Playing wheelchair tennis with Jordanne Whiley of GB to promote the NEC Wheelchair Tennis Masters tournament in November 2014
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Visiting Millwall Football Club Community Trust in January 2015
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Showing his hand-paitning skills with David Cameron during the 2015 election campaign at the Advantage children’s daycare nursey in Surbiton in April 2015
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Celebrateing on stage his win as he attends the Uxbridge count at Brunel University in the 2015 general election
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Outside 10 Downing Street in May 2015
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Boris stretches ahead of a tug of war during the launch of London Poppy Day in October 2015…
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… but it does no good as he slips over
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Visiting the Mahane Yehuda market in November 2015 in Jerusalem, Israel
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A cyclist makes a hand gesture to the Mayor as he cycles over Vauxhall Bridge to launch London’s first cycle superhighway in November 2015
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Addressing supporters during a rally for the ‘Vote Leave’ campaign in April 2016 in Manchester
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Speaking to the people of Stafford in Market Square during the Vote Leave with the now notorious Brexit Battle Bus in May 2016
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Taking a break during the Vote Leave campaign with a pint ahead of meeting with members of the public and supporters in Piercebridge, near Darlington in June 2016
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Out jogging in 2017
Jeremy Selwyn
Shaking the hand of US president Donald Trump before a meeting on United Nations Reform at UN headquarters in New York in September 2017
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Fielding calls during a radio phone-in on LBC in June 2019 during the Tory leadership campaign
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At the hustings event in Manchester in June 2019
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With supporters in Crooklands near Kendal
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Meeting customers during a visit to Polhill Garden Centre in Halstead in July 2019
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Going head-to-head with Jeremy Hunt at the debate on July 15, 2019
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Before Mr Johnson decided to quit, he had been planning a keynote speech with the Chancellor to announce a new economic strategy which was expected to include tax cuts.
Meanwhile, Britain’s fiscal watchdog warned that soaring energy prices and rocketing inflation threaten to tip the UK into recession, hitting household finances and sending government borrowing ballooning.
