The newly appointed Prime Minister of the United Kingdom, Liz Truss has resigned from her position just 45 days after she was appointed and a week after she fired Kwasi Kwarteng, Chancellor of the Exchequer.
Truss, who became Prime Minister on September 6, ran into trouble when her Finance Minister, Kwarteng announced the administration policy of a 45% tax cut for the rich.
British Pounds plunged to a 37-year low immediately the policy was announced while analysts within and outside the country started criticising the policy and the need for an urgent reversal.
Kwarteng later abandoned the policy, saying it was a distraction to the administration. He said “from supporting British business to lowering the tax burden for the lowest paid, our growth plan sets out a new approach to build a more prosperous economy.
“However, it is a clear the abolition of the 45 percent tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.
“As a result, I am announcing we are not proceeding with the abolition of the 45 percent tax rate. We get it, and we have listened.
“This will allow us to focus on delivering the major parts of our growth package.”
A few days later he was fired amid persistent economic uncertainty despite the reversal. On Monday, data showed the U.K inflation rate returned to 10.1% in September 2022, the highest in 40 years. Citizens and businesses immediately look to Jeremy Hunt, the new Finance Minister for solutions and answers to a series of questions.
Hunt became finance minister in October while the data was for what happened in September, however, Britons do not seems to care, especially with costs at a record high. They demanded answers anyway.
Liz Trust, 47, together with the new finance minister does not seem to have the answer and diplomacy needed to lead the world’s sixth-largest economy and the financial hub of the world.
On Thursday, outside the door of 10 Downing Street office and residence, the prime minister admitted she could not deliver on her promises.
“I recognise 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 notify him that I am resigning as leader of the Conservative Party,” she said.
“This morning I met the chairman of the 1922 Committee, Sir Graham Brady. We’ve agreed that there will be a leadership election to be completed within the next week. This will ensure that 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. Thank you.”
