After a turbulent premiership that lasted just 44 days, Liz Truss abruptly resigned from her post last week. Rishi Sunak and Penny Mordaunt are now seen as the front-runners to replace her, but there seems to be a possibility that Boris Johnson will try to return to office.
Markets were shaky even before Truss took power, largely thanks to high inflation and an energy crisis that has roiled Europe and is hitting Britain particularly hard. “The fundamental problem that the UK economy has is that the price of energy has gone up by a lot,” said Dan Davies, a managing director at Frontline Analysts. “That’s the fundamental problem; everything else in the economy is just basically how we’re going to spread that problem around.”
Now, the question is how Truss’s successor will attempt to wrangle surging prices and stave off recession, or if that’s even possible. PM Truss responded to the country’s economic crisis by unveiling a contentious economic agenda that Davies called ‘intrinsically quite dumb and politically really dumb.’ Her plan called for unfunded tax cuts that would have required significant government borrowing in an already uncertain period.
The Conservatives are now racing to name a new prime minister; they are expected to confirm a new leader by October 28.
Source: fpcfreshtalkdaily.co.uk