Liz Truss Becomes UK Prime Minister Amid Energy Crisis and Economic Woes
LONDON (AP) — Liz Truss became the United Kingdom’s new prime minister on Tuesday, taking over from Boris Johnson, and immediately faced the enormous task of addressing the country’s growing energy crisis, labor unrest, and ailing healthcare system.
At the top of her inbox is the energy crisis triggered by Russia’s invasion of Ukraine, which threatens to push energy bills to unaffordable levels, shuttering businesses and leaving the nation’s poorest people shivering in icy homes this winter. Truss plans to cap energy bills at a cost to taxpayers of as much as 100 billion pounds ($116 billion), British news media reported Tuesday. She is expected to unveil her plan on Thursday.
Truss, 47, took office Tuesday afternoon at Balmoral Castle in Scotland, when Queen Elizabeth II formally asked her to form a new government in a carefully choreographed ceremony dictated by centuries of tradition. Johnson, who announced his intention to step down two months ago, formally resigned during his own audience with the queen a short time earlier.
Truss became prime minister a day after the ruling Conservative Party chose her as its leader in an election where the party’s 172,000 dues-paying members were the only voters. As party leader, Truss automatically became prime minister without the need for a general election because the Conservatives still have a majority in the House of Commons.
However, as a national leader selected by less than 0.5% of British adults, Truss is under pressure to show quick results. Ed Davey, leader of the opposition Liberal Democrats, on Tuesday called for an early election in October — something that Truss and the Conservative Party are highly unlikely to do since the Tories are slumping in the polls.
Truss is expected to make her first speech as prime minister Tuesday afternoon outside No. 10 Downing Street. She is under pressure to spell out how she plans to help consumers pay household energy bills that are set to rise to an average of 3,500 pounds ($4,000) a year — triple the cost of a year ago — on Oct. 1 unless she intervenes.
The UK is facing a cost-of-living crisis, with rising food and energy prices, driven by the invasion of Ukraine and the aftershocks of COVID-19 and Brexit, propelling UK inflation above 10% for the first time in four decades. The Bank of England forecasts it will hit 13.3% in October, and that the UK will slip into a prolonged recession by the end of the year.
Train drivers, port staff, garbage collectors, postal workers, and lawyers have all staged strikes to demand that pay increases keep pace with inflation, and millions more, from teachers to nurses, could walk out in the next few months.
Truss, a low-tax, small-government conservative who admires Margaret Thatcher, says her priority is cutting taxes and slashing regulations to fuel economic growth. Critics say that will fuel further inflation while failing to address the cost-of-living crisis. The uncertainty has rattled money markets, driving the pound below $1.14 on Monday, its weakest since the 1980s.
In theory, Truss has time to make her mark: She doesn’t have to call a national election until late 2024. But opinion polls already give the main opposition Labour Party a steady lead, and the worse the economy gets, the more pressure will grow.
In addition to Britain’s domestic woes, Truss and her new Cabinet will also face multiple foreign policy crises, including the war in Ukraine and frosty post-Brexit relations with the EU. Truss, as foreign secretary, was a firm supporter of Ukraine’s resistance to Russia. She has said her first phone call with a world leader will be to President Volodymyr Zelenskyy.
Truss has also pledged to increase UK defense spending to 3% of gross domestic product from just over 2% — another expensive promise. But she’s likely to have much cooler conversations with EU leaders, who were annoyed by her uncompromising stance as foreign secretary in talks over trade rules for Northern Ireland, an unresolved Brexit issue that has soured relations between London and Brussels.
Conclusion:
Liz Truss’s tenure as UK prime minister is off to a rocky start, with the country facing multiple crises, including an energy crisis, labor unrest, and ailing healthcare system. The pressure is on for Truss to deliver on her promises and address the cost-of-living crisis, which has seen energy bills soar and households struggle to make ends meet. The next few weeks will be crucial in determining whether Truss can turn the tide and stabilize the UK economy.
FAQs:
Q: What is the energy crisis in the UK?
A: The energy crisis in the UK is caused by Russia’s invasion of Ukraine, which has led to a shortage of energy supplies and skyrocketing energy bills.
Q: What is Liz Truss’s plan to address the energy crisis?
A: Truss plans to cap energy bills at a cost to taxpayers of as much as 100 billion pounds ($116 billion).
Q: What are the challenges facing Liz Truss as UK prime minister?
A: Truss faces multiple challenges, including an energy crisis, labor unrest, and ailing healthcare system, as well as frosty post-Brexit relations with the EU and the war in Ukraine.
Q: What is the UK’s inflation rate?
A: The UK’s inflation rate is above 10% for the first time in four decades, with the Bank of England forecasting it will hit 13.3% in October.