We recently informed about how Liz Truss won the election back in September, and now she has resigned after six difficult weeks in the office. What caused it and what will happen now?
Liz Truss resigned as UK prime minister
⚠️The British Prime Minister Liz Truss announced her resignation today
— Investro.com (@investrocom) October 20, 2022
Liz Truss as the British prime minister, announced her resignation on Thursday after six challenging weeks in office. This was one of the nation’s shortest-serving leaders ever.
Related article: GBP/USD stumbles after UK inflation data
Even though Truss, Britain’s third female prime minister, abandoned her whole economic strategy and replaced two crucial Cabinet positions over the past week, she was unable to preserve her troubled premiership.
“I cannot deliver the mandate for which I have been elected by the Conservative Party. I spoke to the king and notified him that I am resigning as the leader of the Conservative Party,” she told on Thursday.
Truss announced that a leadership contest to succeed her would take place within the upcoming week. However, she declared that she would continue serving as prime minister until a replacement had been selected.
She was elected to office after a two-month-long leadership contest that comprised many rounds of voting among Conservative Party parliamentarians and two finalists vying for the support of the party’s general membership. She clearly indicated she is a fighter and not a quitter, but she quit anyway.
Truss spent only 44 days in the office. George Canning held the previous record for the shortest tenure as prime minister, lasting 119 days. He began on April 12 and left on August 8, 1827.
The Conservative Party’s poll ratings have plummeted under her leadership. The Conservatives would almost certainly lose any election if they were to start now. She was the least well-liked prime minister according to the pollster YouGov.
Truss entered office with a clear plan for a low-tax, small-government state. However, her proposals alarmed the markets and made the pound tumble because they featured billions in unfunded tax cuts. Soon after, she was compelled to renounce her plans and fire her chancellor.
All plans are buried for good as people speculate on who will be chosen as the successor over Liz Truss. Some speculators claim Jeremy Hunt could take the lead, but this will be known and announced within the next week.
Volatile days are not over for Britain yet, with the resignation of Liz Truss possibly sending the British pound and stocks even lower over the next weeks.