{"id":258836,"date":"2022-10-20T13:14:20","date_gmt":"2022-10-20T13:14:20","guid":{"rendered":"https:\/\/hamslivenews.com\/?p=258836"},"modified":"2022-10-20T13:14:20","modified_gmt":"2022-10-20T13:14:20","slug":"uk-prime-minister-liz-truss-resigns-after-a-failed-budget","status":"publish","type":"post","link":"https:\/\/www.hamslive.com\/news\/2022\/10\/uk-prime-minister-liz-truss-resigns-after-a-failed-budget\/","title":{"rendered":"UK Prime Minister Liz Truss resigns after a failed budget"},"content":{"rendered":"

UK Prime Minister Liz Truss resigns after a failed budget which led to a revolt within her own Conservative Party.<\/span><\/p>\n

U.K. Prime Minister Liz Truss<\/a> resigned Thursday following a fallen tax-cutting budget that rocked financial markets and which led to a revolt within her own Conservative Party.<\/p>\n

Truss said in a statement outside Downing Street: \u201cWe set out a vision for a low-tax, high-growth economy that would take advantage of the freedoms of Brexit.\u201d<\/p>\n

\u201cI recognize though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to His Majesty the King to announce that I am resigning as leader of the Conservative Party.\u201d<\/p>\n

Her resignation follows a meeting with Graham Brady, the Conservative politician that is in charge of leadership votes and reshuffles. Brady chairs the 1922 Committee \u2014 the group of Conservative MPs without ministerial positions who can submit letters of no confidence in the prime minister.<\/p>\n

Just before the meeting, a Downing Street spokesperson told reporters Truss wanted to stay in office.\u00a0\u00a0During the hour the meeting lasted, the number of MPs publicly calling for Truss to step down reached 17. The number who have written letters to Brady expressing no confidence in the prime minister was reported to be over 100 by Thursday.\u00a0 Truss said outside Downing Street that she and Brady had decided the party would complete a leadership election within the next week.<\/p>\n

The pound was up 0.4% on the day against the dollar shortly after the announcement, trading at $1.1273, briefly touching a session high. It remains at the level it was on Sept. 22, before Truss\u2019 market-moving budget. The yields on 10-year and five-year gilts (U.K. sovereign bonds) we both down by around 5 basis points after Truss\u2019 brief speech.<\/p>\n

Opposition parties Labour, the Scottish National Party, and the Liberal Democrats called for a quick general election on Thursday afternoon. Labour leader Keir Starmer said: \u201cThe Conservative Party has shown it no longer has the mandate to govern.<\/p>\n

\u201dOn Sept. 23, Truss\u2019 finance minister, Kwasi Kwarteng, announced a so-called \u201cmini-budget\u201d which began a turbulent period for U.K. bond markets which balked at the debt-funded tax cuts he put forward. Most of the policies were reversed three weeks later by the second finance minister, Jeremy Hunt.<\/p>\n

Truss beat Rishi Sunak to become the leader of the Conservative Party following the resignation of Boris Johnson on July 7. Sunak is now one of the favorites to replace Truss, along with Hunt, another leadership contender Penny Mordaunt, Defense Minister Ben Wallace, and former Prime Minister Boris Johnson.<\/p>\n

The resignation leaves the status of the Conservatives\u2019 expected budget update on Oct. 31 uncertain, but Truss<\/a> said the leadership handover would \u201censure we remain on a path to deliver our fiscal plans.\u201d<\/p>\n

Professor Ashok Swain says, “Whatever you say, in the UK, Prime Ministers resign if they lie, or fail to fulfill the promises they had made. This is what makes the UK different from its former colony, India.”<\/p>\n

\n

Whatever you say, in the UK, Prime Ministers resign if they lie, or fail to fulfil the promises they had made. This is what makes the UK different from its former colony, India.<\/p>\n

— Ashok Swain (@ashoswai) October 20, 2022<\/a><\/p><\/blockquote>\n