UK Prime Minister Liz Truss has fallen on her sword, less than two months into the job.
Truss, who pipped Rishi Sunak to become the leader of the Conservative Party following the resignation of Boris Johnson, was in office for just 44 days, making her the shortest-serving prime minister in British history.
Her tenure began with a failed tax-cutting budget that rocked financial markets and led to a revolt within her own party. She then tried to make her Finance Minister, Kwasi Kwarteng, the fall guy by sacking her.
However, this did little to quench mounting calls for her to resign from her position.
“We delivered on energy bills and on cutting national insurance. And we set out a vision for a low tax, high-growth economy that would take advantage of the freedoms of Brexit. I recognise though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party,” said Truss in her address on Thursday.
“I have therefore spoken to His Majesty The King to notify him that I am resigning as leader of the Conservative Party. This morning, I met the chair of the 1922 committee, Sir Graham Brady and we have agreed there will be a leadership election to be completed in the next week.
“This will ensure we remain on a path to deliver our fiscal plans and maintain our country’s economic stability and national security. I will remain as prime minister until a successor has been chosen.”
Nigel Green, CEO deVere Group, said Truss’s resignation will fuel financial markets’ fears as political chaos in the UK heightens.
“Markets are unforgiving. We have seen this in recent weeks when the pound hit historic lows against the dollar, gilt yields jumped, and stock markets dipped due to reckless economic policies set out by the Truss government. I fear that market volatility will not be over despite the resignation of Liz Truss, whose leadership campaign lasted 10 days longer than premiership,” he said.
He added that it was worrying that in the last four months alone, the UK has had four chancellors, three home secretaries and two prime ministers.
“Now there will be a third PM who will put in place his or her own cabinet. Currently, there’s 10.1% inflation with a stranglehold over households and business, and there is no functioning government. To investors, the UK looks ungovernable, and its economy resembles that of an emerging market, not a G7 nation.”
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