A leading business group has called for the next PM to restore confidence and stability following Liz Truss’s resignation after 44 days in office.
Tony Danker, director-general of the CBI, which represents 190,000 firms, said: “The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain. That must now come to an end if we are to avoid yet more harm to households and firms.
“Stability is key. The next prime minister will need to act to restore confidence from day one.
“They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.”
Liz Truss will be the shortest serving prime minister in British history.
She has currently clocked up 44 full days in the role – a long way behind the next shortest premiership, that of Tory statesman George Canning, who spent 118 full days as PM in 1827 before dying in office from ill health.
Ms Truss was to have overtaken this number of days on January 3 2023.
But instead she will fall short by more than two months, with the next prime minister due to be elected within the next week.
In response to her resignation announcement, the yields on gilts – UK government bonds – eased slightly.
The pound has also lifted on the announcement. Sterling shot up to 1.13 US dollars before the speech as markets anticipated that Ms Truss would resign, before paring back gains slightly to stand 0.4% higher at 1.126 US dollars after her resignation statement.
John McCabe, Chief Executive, North East England Chamber of Commerce said the decision is an 'opportunity for a reset.'
"It’s vital that integrity and unity are the watch words for the future, especially as we approach the fiscal event on the 31 October.
“The country has paid a high price for the instability and uncertainty of the last six weeks. It’s vital those with the mandate to govern renew our trust and belief that they can.”
Allies of Chancellor Jeremy Hunt said he would not be standing for the Tory leadership because he wants to remain as Chancellor to see through his fiscal plans that are due to be published on October 31.
Marco Forgione, Director General of the Institute of Export & International Trade said he welcomed the 'clarity' of Mrs Truss' statement.
He said: "We particularly welcome that there will be a new Prime Minister in place within the next week, given the business certainty that our over 7000 members and the wider trading community require.
“Certainty and coherence are essential if there is to be any chance of minimizing the impact of a recession.”
Max Sheridan, Managing Director at Liverpool manufacturing firm Algeos agreed. He said: "I don’t remember a time when there were so many variable issues affecting our daily lives, especially economically, and I feel small businesses and households need more support than ever before to help survive over the next six months, especially as we are in the midst of a recession. We need stability in order to move forward."
Shevaun Haviland, Director General of the BCC, said the new administration must immediately set out plans for soaring energy bills, labour shortages, spiralling inflation and interest rates.
She said: “Flip-flopping on policies has led to low consumer and business confidence, with four in 10 firms expecting falling profits, as companies have seen little sign of a coherent strategy nor stability in Government decision making."
She called for the Government to work with business to address the cliff-edge of energy support from April, the labour market and a strategy to boost exports.
In the South West, Ian Girling, chief executive of Dorset Chamber, called for a swift transition.
“Our politicians must stop playing games with the lives and livelihoods of our people and businesses at a time when we face rampant inflation, a crisis in the cost of living and doing business and the prospect of a bleak winter ahead."
Andrew Megson, Chief Executive of My Pension Expert, said: Truss attempted to punch her way out of trouble but instead piled more financial worries onto households.
“Financial planning has been made very challenging. Take the multiple U-turns over the triple-lock pension – will the Government commit to it or not? How can people map out their financial futures with such inconsistency?
“We can only hope that Truss’ replacement can quickly bring about calmness, clarity, and certainty, allowing people to effectively plan for the future. In the meantime, it is important that those worried about their finances, whether that is unmanageable debt, the performance of investments or their retirement strategies, seek out advice and support.”
Ireland’s finance minister Paschal Donohoe has said he is looking forward to continuing Ireland’s close friendship with the UK in the wake of Liz Truss’s resignation as Prime Minister.
He said: “The political and the economic stability of the United Kingdom is a vital ingredient in the economic prospects of Ireland and indeed of Europe".
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