UK Prime Minister Liz Truss steps out of Number 10 Downing Street and announces her resignation. Tony McDonough reports

Britain will have a new Prime Minister in seven days after the resignation of Liz Truss.

Just after 1.30pm Ms Truss gave a short statement outside Number 10 Downing Street. She said she had informed the King she was resigning as leader of the Conservative party  and therefore as PM.

She took office just 45 days ago following a drawn-out leadership election in which she defeated former Chancellor Rishi Sunak. However, a mini budget in September, which included tax cuts worth £45bn, sparked turmoil in financial markets.

In the last few days her Chancellor, Kwasi Kwarteng resigned to be replaced by Jeremy Hunt. But chaos in the House of Commons during a vote on fracking proved to be the final straw. And amid a morning of frantic activity, Ms Truss finally admitted she could no longer lead the country. 

She said in her statement: “I came into office at a time of great economic and international instability. Families and businesses were worried about how to pay their bills.

Ms Truss added she was elected “with a mandate to change this”, adding: “We delivered on energy bills.”

And she said she recognised she “cannot deliver the mandate” on which she was elected and that there will be a leadership election “to be completed within the next week”.

Labour leader Sir Keir Starmer demanded an immediate General Election. He said: “The British public deserve a proper say on the country’s future. They must have the chance to compare the Tories’ chaos with Labour’s plans to sort out their mess.

“We must have a chance at a fresh start. We need a General Election – now.”