UK Prime Minister Liz Truss has announced she would resign after the tax plan controversy erupted earlier this month. During her election campaign, she promised to cut taxes and regulation. However, the policy has received severe criticism and has caused a political storm in the country. Critics call her plan a return to Thatcherite economics from the 1980s at a time when the nation couldn’t afford such. After the announcement, markets dropped dramatically and the leader of Ryanair compared Britain’s economic situation to a car crash.
The Conservative Party is divided over the decision. As a result, Truss’s position has been threatened by a number of conservative lawmakers, with several decisions to resign in the last couple of weeks. The government’s confidence has been shattered as a result. Even before Truss announced her resignation, there were already doubts about her ability to govern. Truss has been in office for just over a month and came into power after Boris Johnson quit. However, she has yet to have a general election and does not have the mandate of the entire country. Only her Conservative colleagues in Parliament voted for her. In the UK system, when a PM resigns there is a caucus vote in the ruling party for a new leader. The winner becomes head of the party and, thus Prime Minister.
The current situation is taking place at a critical moment in UK politics. The government has to make a decision about the future of the country. Liz Truss’ decision has the potential to have serious consequences for British politics. In September, the U.K. inflation rate reached 10.1%. The Russian invasion of Ukraine is also impacting energy supplies. Polling shows Britons blame their government for the rising costs of goods and services. The Conservatives have been struggling to stay on top and many feel they had no choice but to replace the Prime Minister.