A month ago, Liz Truss became the new Prime Minister of the United Kingdom. The funeral of Elizabeth II right after her appointment delayed decisive actions at the start of her governance. Sterling fell sharply and the Bank of England had to intervene on September 23 when the finance minister, Kwasi Kwarteng, unveiled a mini-budget that included tax cuts for the wealthiest and a 65 billion pound measure to avert a pension-fund crisis. From that moment, the situation deteriorated rather than improved.
a disastrous start
The rollout of the new administration seriously damaged the credibility of Truss and her government. Economists in the City of London and international institutions such as the International Monetary Fund condemned the budget. The public, already squeezed by rising living costs, reacted with alarm. Critics argued that lowering taxes for top earners and expanding bankers’ bonuses was out of touch with the economic reality. The policy also threatened higher interest rates that could push up mortgage payments and even force some people from their homes. A real estate downturn seemed likely as a consequence.
sink in polls
The electoral impact of the proposals became evident in the polls. The opposition Labour Party held a substantial lead over the Conservatives, who faced mounting discontent. Within a month, the Conservative Party appeared set to lose the next election, scheduled two years away. Observers suggested that selecting Truss had irreparably damaged the party’s electoral prospects. A Sky News source indicated that Truss’s leadership was eroding the party’s standing and credibility.
democratic legitimacy
The debate extended to democratic legitimacy, with critics arguing that the measures reflected only a hard-right wing impulse within the Conservative Party. Truss was not elected by a broad ballot and did not participate in the policy framework she proposed. Boris Johnson, who won the 2019 election, did not command strong support within the parliamentary group. In the early phase of the leadership contest, only 113 of 357 Conservative lawmakers backed Truss, with many preferring her rival, former finance minister Rishi Sunak. This factional split exposed a fragile internal cohesion that could pose a threat to the viability of her plans in Parliament.
criticism and internal revolts
The Conservative Party’s annual conference coincided with Truss’s arrival, a moment that typically signals unity but, on this occasion, showcased rudeness, aggressive debate, and internal pressure aimed at the new prime minister. Dissent spread from radio studios to television studios, and senior members openly questioned the proposed measures. Critics successfully pressured Truss to withdraw the tax cut for the wealthiest, yet discontent persisted. Some ministers and backbenchers publicly disagreed with the approach, signaling that limiting aid and outreach would become the next major battleground.
how long will the truss take
One notable fault line concerns the rift between the Prime Minister and the Chancellor of the Exchequer. If the chancellor resigns or is dismissed, a broader crisis could erupt. Truss might have sought to calm markets by retreating from some of the more controversial proposals. Conservatives worried about electoral losses could accept a slower pace, while an anonymous deputy suggested that the choice was between losing the next election or risking the election after that. The sense of instability within the leadership remained a persistent challenge as divisions inside the party grew louder.