Liz Truss Resigns as UK Prime Minister After Failed Budget

U.K. Prime Minister Liz Truss resigned Thursday after 45 days in office, triggering the second Conservative Party leadership election in four months.

Truss’ resignation followed a failed tax-cutting budget that rocked British financial markets and led to a revolt within her own party.

“We set out a vision for a low-tax, high-growth economy that would take advantage of the freedoms of Brexit,” Truss said in a statement outside Downing Street. “I 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.”

The pound was up 0.5% on the day against the U.S. dollar an hour after the announcement, peaking at $1.1273 in early trading. The British currency remains at levels seen since Sept. 22, when Truss’ finance minister Kwasi Kwarteng announced a “mini-budget” that triggered a turbulent period for the U.K. bond market. Most of the policies were reversed three weeks later by the second finance minister, Jeremy Hunt.

Then, Truss’ finance minister Kwasi Kwarteng announced a “mini-budget” that triggered a turbulent period for the U.K. bond market. Most of the policies were reversed three weeks later by the second finance minister, Jeremy Hunt.

Truss said her successor would be elected by next week.

Hunt has said he will not stand in the leadership contest to be the next prime minister. So far, none of the candidates who stood against Truss in the previous contest have indicated whether they’ll be standing.