The Conservative Party said a new leader would be appointed by October 28.
British Prime Minister Liz Truss resigned on Thursday after just 45 days in office, becoming the shortest prime minister in UK history and the third Conservative prime minister to be removed from office in so many years.
“I cannot fulfill the mandate under which I was elected by the Conservative Party,” Truss said in a statement outside her office at 10 Downing Street. “So I have spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party.”
FOX Business provides a timeline of the events leading up to Truss’s resignation and what happens next.
September 5: Truss wins Conservative election
September 5 Farm narrowly defeated former Treasurer Rishi Sunak in elections to determine the new leader of the British Conservative Party. Truss won by promising to increase defense spending and cut taxes. However, at the time, she declined to say how she would tackle the cost-of-living crisis.
Truss received 81,326 votes to Sunak’s 60,399, according to the Associated Press. The election came after the resignation of former Prime Minister Boris Johnson over his response to allegations of sexual harassment by a senior member of his government.
Truss was formally appointed Prime Minister by Queen Elizabeth II on 6 September. Elizabeth died at the age of 96 two days later.
September 8: Truss announces energy support package.
On September 8, Truss announced plans lift the ban on fracking and unveiled a £150bn plan to cap energy costs for households to £2,500 a year for two years. The Resolution Foundation, a British independent think tank, criticized the proposal, saying it would give a tenth of Britain’s wealthiest households more than £2,200 in support.
September 23: Truss announces mini-budget
Two weeks later, Truss and her head of the treasury, Kwasi Kwarteng, unveiled an economic package that authorized £45bn ($50bn) in unfunded tax breaks, eroding the value of the pound and increasing the cost of UK government borrowing.
The International Monetary Fund (IMF) has issued a rare warning urging the new UK government to reconsider tax cuts. Meanwhile, the Bank of England refrained from an emergency interest rate hike and said it would buy bonds before October 14 to stabilize the market and reduce the cost of government borrowing.
After a week of market volatility, Truss told the BBC in an interview on September 29 that she would stick to the controversial plan.
“We had to take urgent action to keep our economy growing, to keep the UK moving and also to deal with inflation, and of course that means making conflicting and difficult decisions,” she said. “But I’m willing to do it as prime minister because it’s important to me to keep our economy moving.”
October 3: Truss changes course to the maximum tax rate
Following market reaction and scrutiny from the Tory Party, Truss reversed course and said she would waive the plan’s 45% top income tax rate, calling it a “distraction.”
Kvarteng postponed the release date of financial plans and economic forecasts from November 23 to October 31.
October 14: Treasury chief Kwasi Kwarteng fired.
Oct 14 Truss fired Kvarteng and replaced him with former Foreign Secretary Jeremy Hunt. Kwarteng’s departure after 38 days made him the second shortest-serving Chancellor.
On October 17, Hunt canceled nearly all of Truss’s tax credits, slashed its energy subsidies, and reneged on its promise not to cut government spending. He said the government needed to save billions of pounds and that there were “many tough decisions” to make before he laid out a medium-term budget plan on 31 October.
October 19: Truss apologizes but vows to stay in power
On Wednesday, Truss apologized and admitted she made mistakes during her tenure, but said she “took responsibility and made the right decisions in the interest of the country’s economic stability.” She vowed to remain in power, describing herself as “a fighter, not a coward”.
Hours later, a senior cabinet minister, Home Secretary Swella Braverman, resigned after criticizing Truss in her resignation letter, saying she had “concerns about the direction of this government.”
For many conservative lawmakers, the last straw was the Wednesday night vote on fracking for shale gas this caused chaotic scenes in parliament, with party whips accused of using heavy-handed tactics to win votes.
Chris Bryant, an MP for the opposition Labor Party, said he “saw members being physically treated … and taunted”. Conservative officials denied this.
What happens next?
Truss will remain at his post until a replacement is chosen. The Conservative Party said a new leader would be appointed by October 28, with nominations completed on Monday. Sunak, Johnson, House of Commons leader Penny Mordaunt and Secretary of Defense Ben Wallace are on the list of potential replacements.
Candidates need the signatures of 100 out of 357 Conservative MPs, that is, no more than three people. Lawmakers will eliminate one of them and ask the party’s 172,000 members to choose between the two finalists in an online vote.
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“There can be no more hesitation, hesitation or reversal,” said AJ Bell financial analyst Danny Hewson. “Volatility, which has been a hallmark of global markets this year, will definitely continue in UK markets, at least for now. Time is short and trust is at stake, but ordinary people’s finances should be a priority. .”
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