Liz Truss vows 'bold action' to fix UK's economic crisis as world leaders react to her victory

Liz Truss will enter No 10 having won the backing of Tory party members by presenting herself as the free market-loving heir to Margaret Thatcher.

A woman laughs as she steps out of a car

New Conservative Party Leader Liz Truss arrives at the Conservative Central Office in London following the announcement of her win. Source: EPA / Tolga Akmen

Key Points
  • Britain's new Conservative leader vowed "bold" action to fix the country's worst economic crisis in decades.
  • She was confirmed as Prime Minister Boris Johnson's successor after a gruelling party contest.
Britain's new Conservative leader Liz Truss Monday vowed "bold" action to fix the country's worst economic crisis in decades, as she was confirmed as Prime Minister Boris Johnson's successor after a gruelling party contest.

The foreign secretary resisted pressure for a politically perilous early election to confirm her new mandate, vowing instead to "deliver a great victory for the Conservative party in 2024".

Ms Truss beat her rival, former finance minister Rishi Sunak, by about 57 to 43 percent after a summer-long contest decided by just over 170,000 Conservative members — a tiny sliver of Britain's electorate.
Mr Sunak — who has been lukewarm about whether he would serve in Ms Truss's cabinet — tweeted that now was the time for the party to unite as "one family".

But Ms Truss ignored her applauding rival as she marched up to the stage of the central London convention hall, calling it an "honour" to be elected after undergoing "one of the longest job interviews in history".

"I campaigned as a conservative, and I will govern as a conservative," she said, touting Tory values of low taxes and personal responsibility.

Ms Truss vowed a "bold plan" to address tax cuts and the energy crisis, which she has indicated will be financed by much higher borrowing — even at the risk of stoking double-digit inflation.

Ms Truss, 47, will be the UK's third woman to become prime minister following Theresa May and Margaret Thatcher.

The world reacts to Liz Truss' victory

After a shaky relationship with former prime minister Mr Johnson, largely over Brexit, French President Emmanuel Macron congratulated Ms Truss, calling for collaboration between the two countries.

"The British people are our [France's] friends, the British nation is our ally," he said.
Prime Minister of India, a former colony of Britain, Narendra Modi, also congratulated Ms Truss.

He said he hopes the appointment will strengthen the India-UK Comprehensive Strategic Partnership.
President of Japan Fumio Kishida said it will be a pleasure to work with the new prime minister to realise a "free and open Indo-Pacific".
Australian Prime Minister Anthony Albanese also joined world leaders in congratulating Ms Truss.

"Congratulations to Liz Truss on your election as Conservative Party Leader and endorsement as UK Prime Minister - I look forward to a continued constructive relationship and friendship between our nations and people," he said.

Public mistrust

She will formally take office on Tuesday, after Mr Johnson tenders his resignation to Queen Elizabeth II.

"I know she has the right plan to tackle the cost-of-living crisis, unite our party and continue the great work of uniting and levelling up our country," Mr Johnson tweeted.

"Now is the time for all Conservatives to get behind her 100 per cent."
The leadership contest began in July after Mr Johnson announced his departure following a slew of scandals and resignations from his government, including Mr Sunak's.

Ms Truss reserved a portion of her short speech to praising Mr Johnson's record, including on Brexit and the COVID-19 pandemic, and said he was "admired from Kyiv to Carlisle".

That won applause from the Tory faithful present. The right-wing ideologue, however, faces a tough task in winning over public opinion.

A snap poll by YouGov found only one in seven people thought Ms Truss would be a better prime minister than Mr Johnson, mirroring other recent surveys showing her low popularity.

One last month found 43 per cent did not trust her "at all" to deal with the cost-of-living crisis, as energy prices rocket amid Russia's war in Ukraine.

'Ready to work'

Ms Truss is also viewed with mistrust among some of Britain's allies, after taking a hard line against the European Union over post-Brexit trading rules for Northern Ireland.

"I look forward to a constructive relationship, in full respect of our agreements," European Commission president Ursula von der Leyen said, flagging climate change and Ukraine as areas for cooperation.
Ireland's government also gave Truss a wary welcome, but the scale of the challenges ahead saw the Smarkets betting exchange give her a 25 per cent chance of failing to last through 2023.

Woman waving her hand.
New Conservative Party Leader Liz Truss following the announcement of her win arrives at Conservative Central Office, London , 5 September 2022 Source: EPA / TOLGA AKMEN/EPA

Millions say that with energy bills set to rise by 80 percent from October — and even higher from January — they face a painful choice between eating and heating this winter, according to surveys.

Polls show public support for an early general election, and the Conservatives face a growing challenge to retain their grip on power.

Opposition Labour leader Keir Starmer sent his own congratulations to Ms Truss.

Priti Patel resigns as Home Secretary

Priti Patel said on Monday that she will stand down as Britain's Home Secretary, or interior minister, once Ms Truss formally takes over as the country's prime minister.

Her resignation came just hours after Ms Truss was named the winner of a Conservative Party leadership contest to become the next prime minister. Ms Truss will take office on Tuesday.

"I congratulate Liz Truss on being elected our new Leader, and will give her my support as our new Prime Minister," Ms Patel said in her resignation letter to current prime minister Boris Johnson, which she posted on Twitter.

"It is my choice to continue my public service to the country and the Witham constituency from the backbenches, once Liz formally assumes office and a new Home Secretary is appointed."

Farewell speech

On Tuesday morning local time, Mr Johnson will deliver a farewell speech at Downing Street before flying to Scotland — where heavy rain is forecast — to hand his resignation to Queen Elizabeth.

For the first time in her 70-year reign, the 96-year-old monarch will appoint the prime minister at her Scottish retreat, Balmoral, rather than at Buckingham Palace in London.

Ms Truss is expected to fly separately to accept the queen's invitation to take over, to ensure continuity of government in case of any mishaps.

On her return to Downing Street, the new prime minister will then give a short address to the nation. By tradition, that happens on the steps of Number 10.

But it may have to be moved indoors with forecasts for thundery downpours, matching Britain's dismal outlook as the Ms Truss government starts life.

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6 min read
Published 6 September 2022 6:54am
Updated 6 September 2022 7:44am
Source: AFP, Reuters



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