Toscafund economist Savouri’s confidence “supercharged” by Sunak’s UK coronavirus finance plan

Rishi Sunak

Savvas Savouri, chief economist and partner at long-running UK hedge fund manager Toscafund, says UK chancellor Rishi Sunak’s economic update has “supercharged” his confidence.

Sunak, a former hedge fund alumni of Theleme Partners and The Children’s Investment Fund Management, unveiled a GBP30 billion plan on Wednesday (8 July) aimed at saving jobs and kick-starting the UK economy following the unprecedented financial squeeze stemming from the coronavirus pandemic.

The chancellor’s measures include slashing VAT on food, accommodation and attractions from 20 per cent to five per cent until 12 January, paying companies a GBP1,000 bonus for every staff member kept on after the furlough scheme ends later this year, and scrapping stamp duty for house sales under GBP500,000.

“Whatever my best expectation for the rebound in the UK labour market, and I was amongst the most positive, this speech has supercharged my confidence,” Savouri, chief economist and partner at Toscafund, said on Wednesday (8th July).

Reacting to Sunak’s statement, Savouri said: “Why is sterling rising? Because the recovery will be so swift that the Bank of England will be able to think about raising interest rates long before other central banks.”

Before embarking on a career in politics, Rishi Sunak was a former partner at global long/short equity hedge fund Theleme Partners, and earlier worked at Sir Chris Hohn’s activist hedge fund The Children’s Investment Fund Management.

Equity-focused manager Toscafund Asset Management was launched in 2000 by Martin Hughes, a well-known and high-profile figure within the hedge fund industry, who earlier worked at US hedge fund Tiger Management.