Liz Truss resigns after losing support of her MPs, the markets and the country

She resigned following weeks of U-turns and market turmoil which led to a complete breakdown in discipline amongst her MPs who have gradually descended into open revolt.

Giving a statement outside the black door of No 10 yesterday afternoon, Ms Truss confirmed that she will remain in post until a new prime minister is chosen by the end of next week.

It comes only hours after her spokesman told reporters that she would be leading the Conservatives into the next election, in what would become the final U-turn of her premiership.

She soon became the third successive Conservative leader forced out of office by their MPs, announcing that the country will have its fourth Tory prime minister since Boris Johnson’s general election victory less than three years ago.

Underneath dark skies on Downing Street, she gave a short 90 second speech following the collapse of her authority in the post which saw more than a dozen of her MPs calling for her to be replaced.

She said that she came into office with a mandate to change the low economic growth of the UK and the cost of living crisis caused by Vladminir Putin’s war in Ukraine.

The Prime Minister listed her only achievements in office as “delivering on energy bills,” which her new Chancellor, Jeremy Hunt, this week scaled back by 18 months, and reversing Boris Johnson’s rise in national insurance.

“I recognise though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party,” she said, while her husband, Hugh O’Leary, stood behind her.

Minutes after the door closed behind her for what will be one of the final times, it began to rain and work began to choose her successor.

Recent days have seen a steep decline in the Prime Minister’s authority, with the sacking of her Chancellor, her Home Secretary and the complete reversal of her pro-growth, low-tax policies which saw the economy severely weakened after market panic.

Ms Truss confirmed that she had spoken to the King to inform him that she is resigning, and that she agreed to hold a leadership election following a meeting with Sir Graham Brady, the chairman of the 1922 committee on backbench Tory MPs.

“We have agreed there will be a leadership election to be completed in the next week.

“This will ensure 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.”

The Conservative Party will now hold a leadership contest, with several of those who Ms Trust beat in the same contest only three months ago now vying to replace her.

Rishi Sunak, as well as current cabinet ministers Penny Mordaunt, Kemi Badenoch, Ben Wallace, and Grant Shapps are amongst those expected to put their names forward.

Reports yesterday suggested that Boris Johnson, who, like Truss was forced out of office by her own MPs, is expected to run in the contest once he returns to the country from the Caribbean.

Any Tory MP wishing to succeed Ms Truss must get the backing of at least 100 of their colleagues, Sir Graham Brady announced yesterday, with nominations closing on Monday at 2pm.

After which the final two will be put to an online vote of the membership, despite the suggestion from several senior Tories that it should be a contest decided entirely by the parliamentary party.

However, whoever becomes the new Prime Minister will again face questions about their mandate, if, unless Boris Johnson is chosen again by the membership, they will not have won a general election.

Following her announcement yesterday, Sir Keir Starmer reiterated his call for a general election.

The risk at the moment is continuing with this chaos, not having a stable Labour government,” said the Labour leader.

“So that’s why there needs to be a general election.

“We can’t just allow the Tory party to keep putting up the next candidate in the middle of this chaos.

“There is a choice, there’s a Labour Party that’s capable of stabilising the economy, has a clear plan and the public are entitled to choose between that stable Labour government and this utter chaos."

Pressed on Labour’s demands for a general election and what mandate the next Tory prime minister will have without one, levelling up minister Paul Scully said last night: “People elected a government, this is not a presidential system.

“Of course Labour want a general election but what you will find is that when the (Conservative) Party get their strong leader, eventually things will turn to what Labour have to offer.

“And I think Keir Starmer and the Labour Party will be found wanting.”