Liz Truss said on Thursday she was resigning as British prime minister just six weeks after she was appointed, brought down by an economic program that sent shockwaves through financial markets last month and divided her Conservative Party.
Speaking outside the door of her Number 10 Downing Street office, Truss accepted that she could not deliver the promises she made when she was running for Conservative leader, having lost the faith of her party.
A leadership election will be completed within the next week to replace Truss, who is the shortest serving prime minister in British history. George Canning previously held the record, serving 119 days in 1827 when he died.
“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 notify him that I am resigning as leader of the Conservative Party,” she said.
Earlier, Conservative Party officials had gathered at Downing Street while a growing number of her own lawmakers called on her to quit.
Appointed on Sept. 6, Truss was forced to sack her finance minister and closest political ally, Kwasi Kwarteng, and abandon almost all her economic program after their plans for vast unfunded tax cuts crashed the pound and British bonds. Approval ratings for her and her Conservative Party collapsed.
On Wednesday she lost the second of the government’s four most senior ministers, faced laughter as she tried to defend her record to parliament and saw her lawmakers openly quarrel over policy, deepening the sense of chaos at Westminster.
New finance minister Jeremy Hunt is now racing to find tens of billions of pounds of spending cuts to try to reassure investors and rebuild Britain’s fiscal reputation as the economy heads into recession and with inflation at a 40-year high.
Entitled to $129,000 [£115,000] a year for the rest of her life
Despite the shortness of her tenure, she is entitled to receive payments under the Public Duty Costs Allowance (PDCA), a government-regulated program introduced in 1990 to “assist former Prime Ministers still active in public life.”
The allowance reimburses former prime ministers for office and secretarial costs arising from their public duties.
“Payments are made only to meet the actual cost of continuing to fulfil public duties,” according to the UK government website.
“All former Prime Ministers are eligible to draw on the PDCA.”
The PDCA has been capped at £115,000 a year since 2011 and is reviewed annually by the sitting prime minister.
Former leaders are also entitled to claim an allowance toward their staff pension costs, which is limited to 10% of the PDCA.
From 2020 to 2021, former prime ministers Theresa May, David Cameron, Gordon Brown, Tony Blair and John Major were all reimbursed by varying amounts, according to the Cabinet Office’s Annual Report and Accounts 2020-21.