British Prime Minister Liz Truss has bowed to political pressure and resigned following a failed
tax cut plan that rocked financial markets in the United Kingdom.
Truss, who was only appointed prime minister on September 6 of this year, faced a political
revolt within her Conservative Party following tax cut proposals that came at a time of record
inflation and slowing economic growth across the U.K.
Before publicly announcing her resignation, Truss met with Graham Brady, the Conservative
politician who chairs the “1922 Committee,” a group of Conservative Members of Parliament
who can submit letters of no confidence in the prime minister.
Truss succeeded Boris Johnson as prime minister just two days before Queen Elizabeth II
passed away after 70 years on the throne, sending Britain into a period of public mourning.
On September 23, Truss’ then finance minister, Kwasi Kwarteng, announced a mini-budget that
included several unfunded tax cuts, a move that sent the U.K. bond market into a tailspin that
required intervention by the Bank of England.
The tax cuts were reversed three weeks later by new Finance Minister Jeremy Hunt. However,
the political damage to Truss’ leadership was done at that point.
Truss beat Rishi Sunak to become leader of the Conservative Party following the resignation of
Boris Johnson on July 7. Sunak is now seen as a favorite to replace Truss as prime minister.
Related Stories
