EXPLAINED: Why Was Liz Truss Forced To Resign?

London: Liz Truss, the next British prime minister, was elected last month with the intention of reviving the country’s economy and setting it up for long-term prosperity.

However, the plan didn’t work out.

As a result of her economic policies, which jeopardized the country’s financial stability, drove the pound to record lows, sparked panic on the bond markets, and raised mortgage rates for millions of people, Truss’ administration was marred by unrest.

Despite the fact that Truss took office in the midst of a cost-of-living crisis, the conflict in Ukraine, and the lingering effects of the COVID-19 pandemic, her decision to announce 105 billion pounds (USD 116 billion) in tax cuts and spending increases without outlining how she planned to pay for them alarmed investors, who forewarned of skyrocketing public debt.

That made people less confident in the government’s ability to pay its debts and cast doubt on the economic background of the new prime minister, who was appointed following a bitter leadership election for the ruling Conservative Party.

Truss’ authority as prime minister was undermined by the confusions over economic plans, which eventually led to her decision to step down on Thursday.