Liz Truss Resigns
On Thursday, Prime Minister of the UK Liz Truss resigned making her the shortest serving British P.M. in history. Her term, which began on September 6th, was marked by grief over the queen's death and the economic turmoil which has unfolded in response to her economic policy. The recent announcement of Truss’s tax plan led to the pound’s worst day since 2020 and the firing of her Treasury Chief Kwasi Kwarteng.
In her resignation speech, she stated that she came into office looking to cut taxes, grow the economy, and take advantage of Brexit freedoms. "I recognize though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party” Truss said on Thursday. “I have therefore spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party.”
The question now facing the country is who will replace her as the new prime minister during such a pivotal moment with a possible recession on the horizon? The most likely candidate seems to be Rishi Sunak. Sunak currently has the most party members backing him at 164, his closest opponent coming in with 90 pledged supporters in comparison. If Sunak is elected, he plans on imposing higher taxes to pursue more fiscal responsibility for the nation. His plans are in stark contrast to Truss’s previous idea of lower taxes for the country, and shows the party’s reaction to said plans as it completely turns around its economic trajectory for the country.
Still, even with a new prime minister, the UK faces major economic challenges as it continues into the winter with the possibility of an energy crisis in Europe and recession worries increasing.