Truss dismissed Kwarteng without explanation on 14 October and appointed
Jeremy Hunt to succeed him.
Suella Braverman resigned as
Home Secretary on 19 October after admitting to having used her personal email address to send a
Cabinet document. Her resignation letter was critical of Truss's government. On the evening of 19 October, MPs voted to reject a motion which would guarantee parliamentary time for a bill to ban
fracking in the UK. The vote was controversial as it was unclear whether a
three-line-whip had been issued to Conservative MPs, ordering them to vote against it. Allegations of "manhandling" and intimidation were made by a number of MPs against some government ministers. Following these events, together with
mounting criticism and loss of confidence in her leadership, Truss announced on 20 October her intention to resign as party leader and as prime minister. Sunak
was elected unopposed as her successor and succeeded her as leader on 24 October and as prime minister on 25 October.[1][2][3]
Liz Truss launched her bid to succeed
Boris Johnson on 10 July 2022.[7] During the
July–September 2022 Conservative Party leadership election, Truss pledged to cut taxes by scrapping the
National Insurance rise that had previously been announced in April 2022, scrapping the recent corporation tax rise and she also promised to remove green energy levies.[8][9] During the campaign, when asked whether French President
Emmanuel Macron was a friend or foe, Truss replied that the "jury was out" and that she would judge Macron based on his "deeds not words".[10] During a hustings event, Truss suggested that it would be best to ignore the "attention seeker" Scottish First Minister
Nicola Sturgeon before rejecting the possibility of a
second independence referendum for Scotland.[11]
Truss finished second in the fifth round of voting amongst the Conservative Parliamentary Party on 20 July 2022 with 113 votes behind
Rishi Sunak with 137 votes, qualifying her for the final vote amongst the membership.[12] She defeated
Rishi Sunak in the members' vote with 57.4 per cent of the vote against Sunak's 42.6 per cent.[13] She was elected on 5 September 2022, assuming office on 6 September 2022.[14] She became the fourth consecutive Conservative Party prime minister since 2010,[15] and the third female prime minister, following
Margaret Thatcher and
Theresa May.[16] Following the announcement there were protests in London.[17][18]
Truss made her first speech as prime minister in Downing Street on 6 September. In the speech she thanked and praised Johnson, and focused on economic growth, similar to during her campaign. Truss also stated the need for an
energy plan as well other
foreign policy statements.[19][20] Loud music was played outside Downing Street by protesters as Truss spoke.[21]
In September 2022, Truss's chief of staff
Mark Fullbrook was revealed to have been questioned by the
FBI regarding an election bribe in
Puerto Rico.[27]Dominic Johnson was given a life peerage to enable him to be appointed as an investment minister. Johnson was a Conservative Party donor and gave the Conservatives over £300,000, and former business partner of
Jacob Rees-Mogg.[28][29]
Truss was the fifteenth and final prime minister to serve under
Elizabeth II, who died two days after appointing Truss.[30][31][32] Her death at the age of 96 was announced by
Buckingham Palace on 8 September at 6.30pm.[33] Truss delivered a statement outside 10 Downing Street paying tribute to the Queen, stating that "Queen Elizabeth II was the rock on which modern Britain was built."[34] A video from 1994 emerged around this time of Truss branding the monarchy "disgraceful" and advocating for a republic. Truss was then the president of the
Oxford University Liberal Democrats.[35]
The
House of Commons began two days of special tributes to the Queen on 9 September and started the suspension of Parliament until 21 September during the national mourning period.[36][37] Truss attended the
Accession Ceremony of
Charles III the following day[38] and took an oath of allegiance to the King alongside other senior MPs.[39] On 12 September, King Charles III addressed Parliament for the first time as monarch.[40] She also attended the
state funeral of Elizabeth II at
Westminster Abbey on 19 September, where she read a lesson during the service.[41]
In response to the
UK cost of living crisis, Truss set out plans to launch the
Energy Price Guarantee, a scheme to freeze energy bills at an average of £2,500 a year for two years to support homes and businesses through the crisis.[42] Truss stated that the government would fund the scheme by reducing the unit cost of energy through increased borrowing.[43][44] The initiative was forecast to cost approximately £150 billion in taxpayer funds to energy suppliers to make up the difference between what they pay for power in the wholesale markets, and the capped consumer prices.[45] Additionally, it was announced that green levies worth on average £150 per year would be removed temporarily.[46] To fund the scheme, the
Labour Party had proposed a
windfall tax on excess profits of energy companies; however, Truss rejected these proposals claiming that it would deter investment.[47] Truss claimed that her proposals would save each household £1,000 a year on average.[48]
As part of Truss's cost of living proposals, energy resilience was also highlighted as a priority including plans to lift the moratorium on
fracking for shale gas in the near future and launching a new round of approximately 100 new oil and gas licences.[44][49] Equally, Truss planned to accelerate new sources of energy supply including
nuclear,
wind and
solar energy.[44] Many northern Conservative MPs oppose ending the moratorium on fracking.
Mark Menzies leads this group and Menzies insists fracking has no local support.[50]
Throughout the summer and autumn of 2022, several railway strikes took place, after a ballot of
National Union of Rail, Maritime and Transport Workers (RMT) members over whether they should take industrial action.[51] The dispute between the government and rail companies were concerning pay, redundancies and changes to terms and conditions.[52] The RMT suggested that salaries should increase due to the ongoing cost of living crisis.[53] Furthermore, the RMT highlighted the issue of redundancies with
Network Rail planning on cutting 2,500 jobs within the next two years.[54] In the same period,
criminal barristers had begun striking during her predecessor's premiership. On 10 October 2022, barristers voted to end the strike after reaching a deal with Truss's
Secretary of State for Justice,
Brandon Lewis.[55]
Truss's economic policies, called "Trussonomics", were advocated by the
Free Enterprise Group, a group of
Thatcherite-leaning
Conservative Party MPs founded by Truss in mid-2011. The policies are based upon the principle of reducing the overall tax burden, as part of a model intended to create a high-growth,
free-market economy.[56][57][58]
The policies of Trussonomics involve extensive tax cuts in addition to reducing government regulation and repealing employment laws to attract businesses, encourage entrepreneurship, and grow the economy. Proponents of Trussonomics argue that lower taxes would pay for themselves by encouraging economic growth, a theory known as
supply-side economics. The tax cuts proposed in the Truss–Kwarteng
mini-budget were therefore to be funded by borrowing. The proponents' expectations were that, kick-started by a temporary scheme of lending, tax revenue would eventually increase due to growth in the economy, relieving the need for amassing debt from the tax-cutting measures. Trussonomics was influenced by the economic policies of
Ronald Reagan, known as
Reaganomics, and of
Nigel Lawson, the second
Chancellor of the Exchequer under
Margaret Thatcher.[59]
In response to a stagnant economy, a mini-budget was announced in September 2022 with "growth" as its key ambition.[60] It led to a run on sterling, a fall in gilt markets, lost confidence among global investors and criticism from
International Monetary Fund (IMF).[61] It included measures in several sectors such as taxation, benefits, work and investment, stamp duty, energy, bankers' bonuses, shopping, infrastructure and investment zones.[62] The package which was announced by Chancellor of the Exchequer
Kwasi Kwarteng relied heavily on government borrowing.[60]Goldman Sachs,
Bank of America and the IMF among others were sceptical that £45 billion unfunded tax cuts could lead to economic growth and pay for itself as the government hoped.[61] Within the budget, Kwarteng removed the 45 per cent rate of income tax paid by those earning more than £150,000 a year, reversed the rise in national insurance contributions and brought forward by a year the reduction in the basic rate of income tax from 20 per cent to 19 per cent planned for 2024 whilst also scrapping the cap on bankers' bonuses.[63]
Major mini-budget measures by cost over 5 years[64][65]
a Domestic energy support runs to Sep 2024, but only first 6 months is costed
As part of the mini-budget, Kwarteng announced a cut on
stamp duty.[66] Buyers in England and
Northern Ireland would pay no stamp duty on the first £250,000 of a property's value, with the previous threshold being £125,000. For first-time buyers, no tax would be paid on the first £425,000.[67] However, experts said that the cut in stamp duty was unlikely to help first-time homebuyers to get on the property ladder and risked pushing up house prices further.[68] Kwarteng refused to allow the
Office for Budget Responsibility (OBR) to assess the economic impact of the mini budget prior to its announcement. Conservative MP
Mel Stride, a member of the
Treasury Select Committee, wanted independent forecasts published to "provide reassurance and confidence to international markets and investors".[69]
Following the mini-budget announcement, the markets reacted badly with the
sterling and
government bonds dropping significantly in response to a large increase in government borrowing.[70][71] By 23 September, the pound had hit a 37-year low against the
US dollar at below $1.10 whilst the
FTSE 100 Index fell by 2.3 per cent.[72] Andrew Wishart, at
Capital Economics, said the market reaction to Kwarteng's budget suggested mortgage rates of more than 6 per cent were now a "distinct possibility".[68] The
Labour Party accused the Conservatives of gambling on the economy.[73] On 27 September, the
IMF also warned the UK government that it should re-evaluate the planned tax cuts announced in the mini-budget as they would heighten inequality and inflation in the country.[74] Additionally, there was a strong public reaction with one
YouGov poll on 29 September recording a 33-point lead for the
Labour Party ahead of the Conservatives.[75] Truss's personal approval rating were reported as minus 37, falling from minus 7 in one week, with 12 per cent of people describing the mini-budget as a good policy.[76]
In response, Truss and Kwarteng reversed the decision on the removal of the 45 pence of income tax for higher earners on 3 October following a significant backlash.[77] Kwarteng was dismissed by Truss on 14 October 2022,[78] who appointed
Jeremy Hunt to succeed him.[79] Later that day, Truss held a press conference which lasted for eight minutes with Truss announcing that the previously planned corporation tax rise that she had campaigned to abandon during the leadership campaign would now go ahead.[80][81] Truss said she decided on these changes because the mini-budget "went further and faster than markets were expecting".[82]
Criticism
The implementation of Trussonomics was heavily criticised by members of opposing political parties, with members of the
Labour Party describing the policies as "casino economics" and suggesting it would be of greater benefit to the wealthy than those on moderate incomes.[83] Scottish first minister
Nicola Sturgeon and Welsh finance minister
Rebecca Evans both made statements in opposition to the tax cuts proposed under the September 2022 mini-budget,[84][85] with some
Conservative Party MPs also stating it was wrong to cut taxes.[86][87] The
editorial board of The Guardian criticised Trussonomics for going against the desires of the British voters by lowering taxes, reducing public spending, and increasing interest rates at a time when many in the United Kingdom desired more government investment, the
Nationalization of certain industries, and lower levels of inequality.[88]
Internationally, Trussonomics was criticised for its handling of the British economy. The
International Monetary Fund (IMF), which acts to stabilise the global economy and sound economic warnings, took the unusual step of issuing a statement in which it openly criticised Truss's economic policies, stating that "the nature of the UK measures will likely increase inequality", and urging Truss's government to "re-evaluate" its tax measures, "especially those that benefit high income earners".[89] U.S. President
Joe Biden stated that he believed implementing Trussonomics was a "mistake", saying he disagreed with "the idea of cutting taxes on the super-wealthy".[90] Other world leaders and world media also criticised the mini-budget and Truss's economic policy.[91]
In his first speech as prime minister,
Rishi Sunak said of Truss: "She was not wrong to want to improve growth in this country; it is a noble aim. And I admired her restlessness to create change. But some
mistakes were made. Not borne of ill will or bad intentions; quite the opposite, in fact. But mistakes nonetheless."[92] Sunak had previously criticised Truss's economic policy plans during the
July–September 2022 Conservative Party leadership election.[93]
Calls for Truss's resignation
According to The Telegraph, as of 17 October, there were at least five Conservative MPs calling for Truss's resignation:
Crispin Blunt,
Andrew Bridgen,
Angela Richardson,
Charles Walker and
Jamie Wallis.[94] In an interview with the BBC's Chris Mason that evening Truss said she was "sorry for the
mistakes that have been made" but remained "committed to the vision". She also said she would lead the Conservatives into the next general election.[95]Lord Frost, on 18 October, had also called for the Prime Minister to resign.[96]
Truss had meetings with Sir
Graham Brady, the chair of the
1922 Committee on 17 and 20 October.[97] The former meeting was stated to have caused Truss to miss an
urgent question on the afternoon of 17 October requested by opposition leader Keir Starmer and granted by
House of Commons SpeakerSir Lindsay Hoyle—with
Leader of the HousePenny Mordaunt answering on Truss's behalf.[98] Truss's absence drew criticism from a number of MPs, including Starmer, although Truss later made a brief appearance in the House.[99]
Home Secretary
Suella Braverman resigned on 19 October and was replaced by
Grant Shapps.[101] The resignation was triggered by Braverman admitting to having shared an official document through her private email account with a parliamentary colleague. In her resignation letter, Braverman expressed "concerns about the direction of the government" and added that she "had serious concerns about this government's commitment to honouring manifesto commitments".[102]
The same day,
Ed Miliband, a
Labour Party MP, tabled an
opposition day motion on the subject of
fracking.[103] Truss pledged as part of her leadership campaign to lift the moratorium on fracking, yet some Conservative MPs had expressed concern about the change as it went against their 2019 manifesto.[104] The motion was a Programme Order, which, if carried, would have bound the House to consider and hold a vote on a Bill banning fracking, under the rules and timetable set in the Order itself. As the motion would have granted the opposition partial control the
business of the House of Commons on certain days, the party
whips strictly informed Conservative MPs to vote against it (a three-line whip). They were also informed that the vote would be treated as a
matter of confidence.[104][105]
As the day progressed,
10 Downing Street became increasingly concerned about the potential size of the rebellion among Conservative MPs and informed the climate minister,
Graham Stuart, that the vote would no longer be treated as a matter of confidence. Although he subsequently relayed this to the House of Commons, the whips' office were not made aware of the change, resulting in confusion and disarray among Conservative MPs.[106]
Soon after,
William Wragg became the sixth MP to publicly call on the Prime Minister to go.[107] Several Conservative MPs did not vote against the fracking motion.[108] Confusion followed after the Minister
Graham Stuart told Parliament "obviously this is not a confidence vote". Amid reports of Conservative MPs physically jostling their colleagues to vote against the Labour motion,[109] the
Chief WhipWendy Morton and deputy chief whip
Craig Whittaker were both thought to have resigned.[110][111] Later it was clarified that they had not, and remained in their posts.[112] An MP described the vote as "chaos" with claims, denied by cabinet ministers, that Conservative whips had manhandled and bullied backbenchers into voting against.[113][114] Labour MP
Chris Bryant made claims on
Sky News saying that he saw MPs "physically manhandled through the
voting lobby" naming Deputy Prime Minister
Thérèse Coffey along with
Jacob Rees-Mogg as those he saw in the "group". Later that evening, the
Speaker of the HouseLindsay Hoyle announced that he had asked the
Serjeant at Arms and other parliamentary officials to investigate the allegations made about the incident.[115] The fracking motion was ultimately defeated by a vote of 326–230, with 324 Conservative MPs opposing it.[116]
Truss announced her resignation as leader of the Conservative Party at 1:30pm on 20 October 2022.[120] In her speech, she stated that she could not "deliver the mandate on which I was elected by the Conservative Party".[121][122] Truss confirmed that the subsequent
leadership election would be held within the next week and that she would step down as prime minister when it concluded.[123] Truss resigned as prime minister on 25 October on her 50th day in office thus making her the UK's shortest-serving prime minister.
In response to the resignation, Starmer and Sturgeon called for an immediate general election. Calls for an early election were also echoed by the Liberal Democrats and the Green Party.[124][125] French President
Emmanuel Macron said "it is important that Great Britain regains political stability very quickly, and that is all I wish."[126] US President
Joe Biden thanked Truss "for her partnership on a range of issues including holding Russia accountable for its war against Ukraine".[127]
Sunak returned for the impending
Conservative leadership campaign and was elected unopposed as Conservative Party leader and prime minister. Truss congratulated him and said that he had her "full support."[128]
In February 2023, Truss wrote that she was not given a "realistic chance" to enact her policies, citing a "powerful economic establishment" and a lack of support from her own party.[129]
Following her resignation, the future of Trussonomics is uncertain. Economic analysts have argued that despite the reversal of Truss's economic policies, Trussonomics will continue to have a lasting impact on the British economy, specifically with regard to market stability and credibility issues.[130] Analysts have stated that a harder economic downturn marked by a 2 per cent contraction in GDP can be expected, with Truss's successor potentially having to implement
austerity measures and spending cuts in an attempt to restore market credibility.[131] In November 2022, just days before
Jeremy Hunt's autumn statement, an independent think tank,
Resolution Foundation, estimated that the Truss government was responsible for £30bn of the £60bn fiscal hole that needs to be tackled.[132]
Following the Conservative Party conference in October 2022, Truss had an approval rating of −47 per cent according to an opinion poll by The Observer. This was worse than
Boris Johnson's rating during
Partygate and worse than
Theresa May's rating before her resignation. 53 per cent of voters thought Truss should resign and 25 per cent wanted her to stay as Conservative leader.[133]
An
Opinium poll held between 26 and 30 September 2022 projected a Labour lead of 15 points, predicting the Conservatives to lose 219 seats in a general election including ten cabinet ministers.[134]
As of mid-October 2022,
bookmakers were taking odds for the date of Truss's resignation.[135] Bookmakers placed Sunak first in their list of likely Conservative prime ministerial successors, followed in order by Hunt, Mordaunt, Wallace and Johnson.[136]
A
YouGov poll in October 2022 found that 77 per cent of Britons disapproved of the Conservative government, the highest on YouGov record in eleven years. Furthermore, they stated that 87 per cent of people believed that the government was handling the economy poorly.[137] Their survey of Conservative Party members reported that a majority of them wanted Truss to resign, with their favoured front runners for her replacement being
Boris Johnson as most popular, followed in order by
Ben Wallace,
Rishi Sunak,
Penny Mordaunt,
Kemi Badenoch,
Jeremy Hunt, and
Suella Braverman.[138][139] Equally, a Redfield & Wilton poll registered a 36 per cent lead for the Labour Party (the largest lead by any party since October 1997) and recorded Truss's personal approval rating at 9 per cent.[140]
International prime ministerial trips
Truss made two overseas trips during her premiership.
^Rishi Sunak, Truss's successor, recorded lower approval ratings amongst individuals who voted for the Conservative Party at the 2019 general election.[6]
^Heappey, who previously served as Minister of State for the Armed Forces, was given the additional portfolio of Veterans' Minister and was given the right to attend Cabinet.
^"Latest GB Voting Intention". Redfield & Wilton strategies. 17 October 2022.
Archived from the original on 19 October 2022. Retrieved 19 October 2022.