PRIME Minister Liz Truss has resigned after just six weeks in post.
Truss, who yesterday declared she was ‘a fighter, not a quitter’, has, well, quit after just 45 days in the job.
Her resignation statement was equally short:
I came into office at a time of great economic and international instability.
Families and businesses were worried about how to pay their bills.
Putin’s illegal war in Ukraine threatens the security of our whole continent.
And our country had been held back for too long by low economic growth.
I was elected by the Conservative Party with a mandate to change this.
We delivered on energy bills and on cutting national insurance.
And we set out a vision for a low tax, high growth economy – that would take advantage of the freedoms of Brexit.
I recognise 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.
This morning I met the Chair of the 1922 Committee Sir Graham Brady.
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.
Thank you.
Scotland’s First Minister Nicola Sturgeon tweeted:”There are no words to describe this utter shambles adequately. It’s beyond hyperbole – & parody. Reality tho(ugh) is that ordinary people are paying the price.
“The interests of the Tory party should concern no-one right now. A General Election is now a democratic imperative.”
Labour leader Sir Keir Starmer said: “After 12 years of Tory failure, the British people deserve so much better than this revolving door of chaos. We need a general election, now.”
His full statement:
Truss will remain as PM until her successor is elected – not by the people of Great Britain, but by Tory MPs.
CHAOTIC TORY GOVERNMENT LURCHES FROM CRISIS TO CRISIS
HOME SECRETARY RESIGNS
DEFIANT TRUSS CLINGS ON – FOR NOW
Suella Braveman’s scathing resignation letter:
Prime Minister’s response:
If the resignation of another senior government minister was serious enough, worse was to follow on a chaotic evening at Westminster as Tory whips were accused of bullying and physically manhandling MPs over a crucial vote on fracking.
Both the Chief Whip and Deputy Chief Whip resigned – or maybe they didn’t.
Chaos. Utter chaos.
At time of writing Liz Truss remains in post as Prime Minister, clinging on despite her authority collapsing around her. Whether she will still be there this evening is anyone’s guess.
CHANCELLOR Kwasi Kwarteng has been sacked, carrying the can for the ill-judged ‘mini-budget’ which has caused economic turmoil since it was announced three weeks ago today.
‘I’m going nowhere’ Kwarteng, Prime Minister Liz Truss’s choice as Chancellor, was recalled from an IMF meeting in Washington DC this morning to be told the news.
Prime Minister Liz Truss will desperately hope that the departure of close ally Kwarteng will appease the markets. She made the following brief statement confirming a humiliating U-turn this afternoon:
Good afternoon,
My conviction that this country needs to go for growth is rooted in my personal experience.
I know what it’s like to grow up somewhere that isn’t feeling the benefits of growth.
I saw what that meant and I am not prepared to accept that for our country.
I want a country where people can get good jobs, new businesses can set up and families can afford an even better life.
That’s why from day one I’ve been ambitious for growth.
Since the 2008 financial crisis, the potential of this great country has been held back by persistently weak growth.
I want to deliver a low tax, high wage, high growth economy.
It’s what I was elected by my party to do.
That mission remains.
People across this country rightly want stability.
That is why we acted to support businesses and households with their energy costs this winter.
It’s also the case that global economic conditions are worsening due to the continuation of Putin’s appalling war in Ukraine.
And on top of this, debt was amassed helping people through the Covid pandemic.
But it is clear that parts of our mini budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change.
We need to act now to reassure the markets of our fiscal discipline.
I have therefore decided to keep the increase in corporation tax that was planned by the previous government. This will raise £18 billion per year.
It will act as a down-payment on our full Medium-Term Fiscal Plan which will be accompanied by a forecast from the independent OBR.
We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term.
We will control the size of the state to ensure that taxpayers’ money is always well spent.
Our public sector will become more efficient to deliver world-class services for the British people.
And spending will grow less rapidly than previously planned.
I met the former Chancellor earlier today. I was incredibly sorry to lose him. He is a great friend and he shares my vision to set this country on the path to growth.
Today I have asked Jeremy Hunt to become the new Chancellor.
He is one of the most experienced and widely respected government ministers and parliamentarians.
And he shares my convictions and ambitions for our country.
He will deliver the Medium-Term Fiscal Plan at the end of this month.
He will see through the support we are providing to help families and businesses including our Energy Price Guarantee that’s protecting people from higher energy bills this winter.
And he will drive our mission to go for growth, including taking forward the supply side reforms that our country needs.
We owe it to the next generation to improve our economic performance to deliver higher wages, new jobs and better public services, and to ease the burden of debt.
I have acted decisively today because my priority is ensuring our country’s economic stability.
As Prime Minister, I will always act in the national interest.
This is always my first consideration.
I want to be honest, this is difficult. But we will get through this storm.
And we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.
Kwarteng’s replacement – and the UK’s fourth Chancellor in a tumultuous 2022 – is none other than veteran former health secretary Jeremy Hunt.
Hunt supported Rishi Sunak – who’s predictions on the economy have been proved painfully accurate – in the recent Tory leadership election.
Hunt himself was an early casualty in the recent Tory leadership election and was also once voted as the most unpopular front-line politician of all time!
Clearly another popular choice … what could possibly go wrong?
HM Treasury issued the following statement this evening:
Government update on Corporation Tax
The Prime Minister has set out that the way the government is delivering on its mission to achieve a low tax, high wage, high growth economy is to change.
The legislated increase in the Corporation Tax rate from April 2023 will go ahead, with most small businesses benefitting from the new small profits rate.
Chancellor Jeremy Hunt will deliver the Medium-Term Fiscal Plan on 31 October, detailing action to get debt falling as a percentage of GDP over the medium term.
The government has today [Friday 14 October] announced that Corporation Tax will increase to 25% from April 2023 as already legislated for, raising around £18 billion a year and acting as a down payment on its full Medium-Term Fiscal Plan.
The decision has been taken in recognition of the need to ensure the UK’s economic stability and reassure markets of its commitment to fiscal discipline, after elements of September’s Growth Plan went further and faster than markets were expecting.
The Prime Minister has set out that the government is prepared to do whatever is necessary to ensure debt is falling as a share of the economy in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.
The previously announced small profits rate of Corporation Tax will be maintained. Smaller or less profitable businesses will not pay the full 25% rate, and companies with less than £50,000 of profit – the large majority – will not see any increase at all, continuing to pay Corporation Tax at 19%.
The UK’s corporate tax regime will remain competitive and supportive of growth at the 25% rate, continuing to be the lowest rate in the G7. As part of the forthcoming tax review, the government will look at how the tax system can go further to promote growth and investment.
The government is committed to growing the economy and taking forward supply-side reforms that will ignite strong and sustained growth that delivers prosperity for the UK.
Chancellor of the Exchequer Jeremy Hunt will set out the government’s Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility.
Prime Minister Liz Truss met European leaders at Prague summit in show of unity against Russian aggression
Prime Minister pays tribute to “collective resolve” to oppose Russian aggression
UK agrees new regional energy cooperation and progress on Sizewell C nuclear development at Prague summit
Ministers to take forward enhanced operational cooperation to address migrant crisis
Prime Minister Liz Truss has welcomed the strong show of unity against Russian tyranny at the summit of European leaders yesterday, as the UK secures new commitments on energy and migration.
Convening 44 leaders from across the continent, the meeting in Prague reaffirmed the steadfast resistance to Russia’s aggression.
In a meeting with French President Macron, both leaders confirmed their full support for the new nuclear power station at Sizewell C and committed to take all necessary steps to finalise investment decisions within the next month, progressing the next generation of the UK’s nuclear power.
The UK and France will ramp up wider cooperation on civil-nuclear development ahead of a planned UK-France Summit in 2023, working together on issues including new innovation, infrastructure and workforce training.
Czech Prime Minister Petr Fiala also confirmed plans to renew the UK’s participation in the North Seas Energy Cooperation group, which supports the construction of wind farms and interconnectors in the region. The Prime Minister used the summit to push for the development of new, next-generation hybrid interconnectors in the North Sea to accelerate renewable energy capacity.
Prime Minister Liz Truss said: “Leaders leave this summit with greater collective resolve to stand up to Russian aggression. What we have seen in Prague is a forceful show of solidarity with Ukraine, and for the principles of freedom and democracy.
“The UK will continue to work with our allies to deliver on the British people’s priorities, including ending our reliance on authoritarian regimes for energy and reducing costs for families, tackling people smuggling gangs, and standing up to tyrants.”
The Prime Minister also discussed the benefits of energy partnerships with Norwegian Prime Minister Jonas Støre, highlighting today’s announcement from London-based firm Neptune Energy that it will increase gas production at the Duva field as a successful example. Gas from Norway’s Duva subsea field serves households in the UK.
On migration, the UK Prime Minister agreed with President Macron and Dutch Prime Minister Rutte to intensify cooperation on tackling illegal migration. The UK and France confirmed that their interior ministers would conclude an ambitious package of measures to address pernicious people smuggling gangs in the Channel this autumn.
The Prime Minister also attended the closing plenary session and dinner at the European leaders’ summit last night.
On Friday 23 September, the Chancellor of the Exchequer, the Rt Hon Kwasi Kwarteng MP, set out how the government would fulfil its commitment to cut taxes for people and businesses and announced wider supply side policies to grow the economy.
Building on this, as the much-criticised Growth Plan set out on Friday, Cabinet Ministers will announce further supply side growth measures in October and early November, including changes to the planning system, business regulations, childcare, immigration, agricultural productivity, and digital infrastructure.
Next month, the Chancellor will, as part of that programme, outline regulatory reforms to ensure the UK’s financial services sector remains globally competitive.
He will then set out his Medium-Term Fiscal Plan on 23 November.
The Fiscal Plan will set out further details on the government’s fiscal rules, including ensuring that debt falls as a share of GDP in the medium term.
In the Growth Plan on Friday, the Chancellor set out that there would be an Office for Budget Responsibility forecast this calendar year. He has requested that the OBR sets out a full forecast alongside the Fiscal Plan, on 23 November.
As the Chief Secretary to the Treasury set out this weekend, the government is sticking to spending settlements for this spending review period.
The Chancellor also confirmed that there will be a Budget in the Spring, with a further OBR forecast.
The £ has continued to trade down against both the dollar and the Euro following the Chancellors announcement on Friday.
A new YouGov opinion poll suggests the Tories now trail Labour by 17 points. There is even talk of a vote of no confidence in Prime Minister Liz Truss, who has been in post for just three weeks. A remarkable achievement.
In UN address the PM will call on democracies to harness the power of cooperation seen since Putin’s invasion of Ukraine to constrain authoritarianism.
PM will argue the free world must prioritise economic growth and security – including ending dependency on authoritarians – to win the new era of strategic competition.
UN speech will also stress the need to properly invest in our physical security and will recommit to spending 3% of UK GDP on defence by 2030.
Prime Minister Liz Truss will use a speech in New York today (Wednesday) to warn fellow democratic leaders against any complacency when it comes to defending our values and preserving a world order that rewards freedom.
At the first ever session of the UN General Assembly held in the shadow of a large-scale war of aggression in Europe, the Prime Minister will highlight the threat from authoritarian states working to undermine security and stability around the world.
She will outline her vision for this new, more competitive era, which will require likeminded democracies to fight to defend our ideals. This fight begins with ensuring the UK and its partners have the strong economic foundations they need to constrain authoritarianism.
The Prime Minister will outline her plans to build a British economy which attracts growth by rewarding innovation, championing investment and enterprise, and welcoming the best talent around the world.
She will also set out the steps the Government is taking to ensure the British economy is free from malign interference. This includes increasing our energy independence and safeguarding the security of our supply chains.
In her speech, the Prime Minister will tell the UN: “The commitment to hope and progress must begin at home – in the lives of every citizen that we serve…
“We want people to keep more of the money they earn, because we believe that freedom trumps instruction…
“…We are reforming our economy to get Britain moving forward once again. The free world needs this economic strength and resilience to push back against authoritarian aggression and win this new era of strategic competition…
“…We will no longer be strategically dependent on those who seek to weaponise the global economy.”
As the UK boosts the dynamism and resilience of our own economy, the Prime Minister will also make the case for democracies working together to protect one another’s economic security.
The strength of democratic economies, rooted as they are in the aspirations of their people, is a clear counterpoint to autocratic states, which sow the seeds of their own demise by stifling aspiration and creativity.
The Prime Minister will make the case for harnessing that strength and denying authoritarian states the opportunity to manipulate the global economy.
She will tell the UN General Assembly that the G7 and other likeminded partners must act as an economic NATO, collectively defending our prosperity and coming to the aid of any partner targeted by an aggressive regime.
This economic security goes hand in hand with physical security. The Prime Minister will therefore reiterate her commitment to protecting the UK and our allies, including by increasing defence spending to 3% of UK GDP on defence by 2030.
The Prime Minister is expected to say: “Just as we are building a plan for growth at home, we are also developing a new blueprint for our engagement with the world.
“We will build resilience and collective security – because they are vital for freedom and democracy. We will be a reliable, trustworthy and dynamic partner.”
To ensure the UK’s diplomatic, military and security architecture is keeping pace with evolving threat posed by hostile nations, the Prime Minister has commissioned an update to the Integrated Review.
The UK’s Integrated Review of security, defence, development and foreign policy was published in March 2021 – before Putin’s full-scale invasion of Ukraine created the greatest security challenge ever experienced by NATO.
Professor John Bew, the Prime Minister’s special adviser for foreign affairs and defence, will lead a Downing Street process to update the review.
The refreshed strategy will ensure we are investing in the strategic capabilities and alliances we need to stand firm against coercion from authoritarian powers like Russia and China. The update is expected to be published by the end of this year.
By properly investing in defence, the Prime Minister will ensure that the UK maintains our position as the leading security actor in Europe, so that we are ready to stand up for peace, prosperity and freedom across the world – just as we have done in Ukraine.
The Prime Minister will highlight these efforts in her speech. She will pay tribute to the bravery and determination of the Ukrainian people, and commit to continue standing up for human rights and democracy around the world.
The Prime Minister is expected to say: “This is a decisive moment in British history, in the history of this organisation, and in the history of freedom.
“The story of 2022 could have been that of an authoritarian state rolling its tanks over the border of a peaceful neighbour and subjugating its people.
“Instead, it is the story of freedom fighting back …
“But this must not be a one off … Britain’s commitment to this is total.
“Together with our friends and allies around the world, we will continue to champion freedom, sovereign and democracy.
“And we will define this new era as one of hope and progress.”
Prime Minister Liz Truss’s statement on the steps of Downing Street:
Good afternoon,
I have just accepted Her Majesty The Queen’s kind invitation to form a new government.
Let me pay tribute to my predecessor.
Boris Johnson delivered Brexit, the Covid vaccine, and stood up to Russian aggression.
History will see him as a hugely consequential Prime Minister.
I’m honoured to take on this responsibility at a vital time for our country.
What makes the United Kingdom great is our fundamental belief in freedom, in enterprise, and in fair play.
Our people have shown grit, courage and determination time and time again.
We now face severe global headwinds caused by Russia’s appalling war in Ukraine and the aftermath of Covid.
Now is the time to tackle the issues that are holding Britain back.
We need to build roads, homes and broadband faster.
We need more investment and great jobs in every town and city across our country.
We need to reduce the burden on families and help people get on in life.
I know that we have what it takes to tackle those challenges.
Of course, it won’t be easy. But we can do it.
We will transform Britain into an aspiration nation…with high-paying jobs, safe streets and where everyone everywhere has the opportunities they deserve.
I will take action this day, and action every day, to make it happen.
United with our allies, we will stand up for freedom and democracy around the world – recognising that we can’t have security at home without having security abroad.
As Prime Minister, I will pursue three early priorities.
Firstly, I will get Britain working again.
I have a bold plan to grow the economy through tax cuts and reform.
I will cut taxes to reward hard work and boost business-led growth and investment.
I will drive reform in my mission to get the United Kingdom working, building, and growing.
We will get spades in the ground to make sure people are not facing unaffordable energy bills and we will also make sure, that we are building hospitals, schools, roads, and broadband.
Secondly, I will deal hands-on with the energy crisis caused by Putin’s war.
I will take action this week to deal with energy bills and to secure our future energy supply.
Thirdly, I will make sure that people can get doctors’ appointments and the NHS services they need. We will put our health service on a firm footing.
By delivering on the economy, on energy, and on the NHS, we will put our nation on the path to long-term success.
We shouldn’t be daunted by the challenges we face.
As strong as the storm may be, I know that the British people are stronger.
Our country was built by people who get things done.
We have huge reserves of talent, of energy, and determination.
I am confident that together we can:
Ride out the storm,
We can rebuild our economy,
And we can become the modern brilliant Britain that I know we can be.
This is our vital mission to ensure opportunity and prosperity for all people and future generations. I am determined to deliver. Thank you.
CABINET APPOINTMENTS:
The Rt Hon Elizabeth Truss MP as Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
The Rt Hon Dr Thérèse Coffey MP as Secretary of State for Health and Social Care. She will also be Deputy Prime Minister (below).
The Rt Hon Kwasi Kwarteng MP as Chancellor of the Exchequer
The Rt Hon James Cleverly MP as Secretary of State for Foreign, Commonwealth and Development Affairs
The Rt Hon Suella Braverman QC MP as Secretary of State for the Home Department
Wendy Morton MP as Parliamentary Secretary to the Treasury (Chief Whip). She will attend Cabinet
The Rt Hon Ben Wallace MP has been re-appointed as Secretary of State for Defence
The Rt Hon Brandon Lewis CBE MP as Lord Chancellor, and Secretary of State for Justice
The Rt Hon Nadhim Zahawi MP as Chancellor of the Duchy of Lancaster, Minister for Intergovernmental Relations and Minister for Equalities
The Rt Hon Penny Mordaunt MP as Lord President of the Council, and Leader of the House of Commons
Lord True CBE as Lord Privy Seal, and Leader of the House of Lords
The Rt Hon Jake Berry MP as Minister without Portfolio
The Rt Hon Alok Sharma MP has been re-appointed as COP26 President
The Rt Hon Jacob Rees-Mogg MP as Secretary of State for Business, Energy and Industrial Strategy
The Rt Hon Simon Clarke MP as Secretary of State for Levelling Up, Housing and Communities
Kemi Badenoch MP as Secretary of State for International Trade and President of the Board of Trade
Chloe Smith MP as Secretary of State for Work and Pensions
The Rt Hon Kit Malthouse MP as Secretary of State for Education
Ranil Jayawardena MP as Secretary of State for Environment, Food and Rural Affairs
The Rt Hon Anne-Marie Trevelyan MP as Secretary of State for Transport
The Rt Hon Michelle Donelan MP as Secretary of State for Digital, Culture, Media and Sport
The Rt Hon Chris Heaton-Harris MP as Secretary of State for Northern Ireland
The Rt Hon Alister Jack MP has been re-appointed as Secretary of State for Scotland
The Rt Hon Sir Robert Buckland KBE QC MP has been re-appointed as Secretary of State for Wales
Chris Philp MP as Chief Secretary to the Treasury. He will attend Cabinet
Rt Hon Michael Ellis QC MP as Attorney General. He will attend Cabinet
Edward Argar MP as Paymaster General and Minister for the Cabinet Office. He will attend Cabinet
Vicky Ford MP as a Minister of State (Minister for Development) in the Foreign, Commonwealth and Development Office. She will attend Cabinet
Tom Tugendhat MBE MP as a Minister of State (Minister for Security) in the Home Department. He will attend Cabinet
James Heappey MP has been re-appointed as a Minister of State in the Ministry of Defence. He will be Minister for the Armed Forces and Veterans and will attend Cabinet.
Graham Stuart MP as a Minister of State (Minister for Climate) in the Department for Business, Energy and Industrial Strategy. He will attend Cabinet.
