How Liz Truss’s political programme imploded within 38 days of power: A timeline

Commenting on the short tenure Truss actually practised power, The Economist magazine commented this week. “That is the shelf-life of a lettuce.”

Here is a timeline of events that unfolded after Truss assumed the office that is said to be turning into a nightmare.

5 September

In a vote among Conservative Party members, Rishi Sunak, a former finance minister for Johnson, receives 60,399 votes losing to Truss’ 81,326.

With support from less than 0.2% of the UK electorate and a small portion of her own MPs, she is now prime minister as the new leader of the largest party in parliament.

The queen confirms her as prime minister the following day.

Despite having a weak mandate, Truss removes all Sunak backers from her new cabinet and appoints Kwasi Kwarteng to the position of chancellor of the exchequer.

8 September

A costly plan to limit household energy costs is unveiled by Truss in response to Russia’s invasion of Ukraine.

However, the tragic announcement is overshadowed by the queen’s passing, which halts all government operations for ten days.

23 September

Kwarteng releases a “mini-budget” that includes information on the cost of the energy programme, which is £60 billion ($67 billion) over the following six months.

However, there are no initiatives to raise money. Instead, he proposes scrapping a cap on bankers’ bonuses and massive new borrowing to pay for broad tax cuts, including those for the highest earners.

Politicians immediately criticise the announcement for being unfair. However, the markets reserve their harshest judgement for their reaction to the new borrowing, pushing the pound toward parity with the dollar.

On a Sunday two days later, Kwarteng promises “more to come” in terms of tax cuts. When the markets reopen the following day, the pound reaches new lows.

The media begin reporting tensions between Kwarteng and Truss and widespread unease among Tory MPs, including cabinet ministers, as a result of the budget, which they have dubbed “Kami-Kwasi.”

28 September

The Bank of England announces a two-week programme to buy long-term UK bonds, with an initial cap of £65 billion, in an effort to “restore orderly market conditions” as the turmoil on the bond market threatens British pension funds.

29 September

Pollsters YouGov report a 33-point lead for the main opposition Labour party over the Tories — its biggest margin since the heyday of former Labour prime minister Tony Blair in the late 1990s.

Additionally, other polls predict electoral catastrophe for the Conservatives. But Kwarteng promises to “stay the course” just hours before delivering the keynote address at the party’s annual conference at the beginning of October.

3 October

After hurried late-night negotiations, Kwarteng and Truss abandon their planned reduction in the top rate of income tax in an embarrassing U-turn as civil war grips the party conference.

Truss promises to pursue her “growth, growth, growth” agenda in her own conference speech on 5 October, but she falls short of assuaging party rebels and uneasy markets.

As mortgage rates rise, rising UK government bond yields cause more pain for UK households.

10 October

In yet another volte-face, Kwarteng says he’ll release a medium-term fiscal plan and independent budget forecasts on October 31 — Halloween — as opposed to the original schedule of late November.

But on October 12, Truss rejects any cuts to government spending while announcing that she won’t change her mind about the remaining tax cuts, adding to the impression that the government is in disarray.

14 October

After only 38 days in the position, the prime minister fires Kwarteng, further fueling rumours that her party was planning to attempt her own ouster as the markets remain uneasy and pressure mounts on Truss.

In a letter to Truss, Kwarteng argues in favour of the economic plan, saying that “the status quo was simply not an option.”

She appoints Jeremy Hunt, a former foreign minister, in his place.

(With inputs from AFP)