Know Everything About Liz Truss, The New British Prime Minister

UK foreign secretary Liz Truss was on September 5 announced as the next prime minister of the United Kingdom, after she defeated rival Rishi Sunak in the Conservative Party leadership race.

She will now go on to formally take charge as British Prime Minister as Boris Johnson's successor.

The 47-year-old senior Cabinet minister was widely expected to become the third female British Prime Minister after 170,000 online and postal votes cast by Tory members, ending Sunak's historic run as the first member of Parliament of Indian heritage to compete for the top job at 10 Downing Street. 

Truss polled 81,326 votes, compared to Sunak's 60,399 in an election with a high turnout of 82.6 per cent, with 654 rejected ballots from a total of 172,437 eligible Tory voters.

Truss - the third female Prime Minister in Britain after Margaret Thatcher and Theresa May - said she has a "bold plan" to cut taxes and grow the UK economy.

Truss later tweeted, saying she's honoured, to be elected leader. "I am honoured to be elected Leader of the Conservative Party. Thank you for putting your trust in me to lead and deliver for our great country. I will take bold action to get all of us through these tough times, grow our economy, and unleash the United Kingdom's potential," she said in a tweet.

Truss' campaign pledge to reverse Sunak's tax hike plans while he was Chancellor to tackle the cost-of-living crisis facing the country seems to have worked in favour. While Sunak's approach of wanting to focus on fighting soaring inflation and using targeted measures to offer support to those most in need did connect with audiences at the nearly dozen party hustings, that clearly wasn't enough to turn the tide in his favour.

As foreign secretary, she had been front and centre in Britain's support for Ukraine and Western sanctions against Russia over the invasion of its neighbour. Truss also has figured prominently in the UK’s feud with the European Union over post-Brexit trade arrangements, according to Associated Press.

Challenges Truss faces

Rising Inflation 

Inflation in Britain may exceed 20 per cent next year if soaring gas prices fail to come down, economists from Goldman Sachs warned, adding that a recession was on the way. 

In August, Britain's energy regulator said power bills will jump 80 per cent to an average of 3,549 pounds ($4,188) a year from October.

Reportedly, the British pound dropped to its lowest level against the US dollar since 1985, reflecting the grim state of UK’s economy. 

Cost of living:

Truss promised to cut taxes as inflation hit a 40-year high of over 10 per cent, with high energy and food prices.

Truss is also proposing to axe taxes on fuel that pay for the transition to cleaner energy but she has rejected "sticking plaster" solutions to the cost-of-living crisis such as direct government aid.

"If I'm elected prime minister, I will act immediately on bills and on energy supply," Truss told the BBC on Sunday.

An emergency budget is expected within weeks, as the Bank of England (BoE) predicts that the UK will enter a year-long recession by the end of 2022.

Before then, Truss is expected to present a plan to tackle soaring energy bills as households face 80 per cent average hike in electricity and gas bills before winter. 

Energy

The UK is seeking to safeguard energy security after key producer Russia sent prices rocketing with its invasion of Ukraine.

Truss has backed the UK's ambition to achieve carbon neutrality by 2050. She favours all-out investment in energy including controversial fracking technology where it is backed by locals.

Truss also wants more energy to come from the North Sea and backs current UK government policy on investment in nuclear power and renewables.

Financial regulation

Truss has called for an overhaul of regulators in the City of London financial district. She has been critical of the BoE's response to rising inflation and has proposed examining the statute that gave it operational independence over monetary policy in 1997.