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Truss: "We set out a Vision for a Low-Tax, High-Growth Economy"; Truss to Remain in Office until Successor is Named; Boris Johnson's Allies believes he'll Stand again as UK PM; Truss: Leadership Election to be completed within next Week; Liz Truss Resigns as British Prime Minister. Aired 11a-12p ET
Aired October 20, 2022 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
BECKY ANDERSON, CNNI HOST: I'm Becky Anderson. Hello and welcome back to the show! We are following what is a stunning move in British politics
today the resignation announcement coming a few hours ago outside 10 Downing Street. Ms. Liz Truss says she will remain in the post until a new
leader is chosen, which she says will happen within the next week.
But with her Conservative Party in chaos, it's not clear how the leadership contest will play out and if or when a general election might happen? Well,
the Prime Minister stepping down after weeks of party infighting exacerbated by her failed plan to cut taxes on Britain's wealthiest
citizens. Here's how it sounded outside 10 Downing Street earlier today.
(BEGIN VIDEO CLIP)
LIZ TRUSS, BRITISH PRIME MINISTER: I came into office at a time of great economic and international instability. Families and businesses were
worried about how to pay their bills. Putin's illegal war in Ukraine threatens the security of our whole continent.
And our country held back for too long by low economic growth. I was elected by the Conservative Party with a mandate to change this. We
delivered on energy bills on cutting national insurance. And we set out a vision for a low tax high growth economy that would take advantage of the
freedoms of Brexit.
I recognize though, given this situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to
His Majesty the King to notify him that I am resigning as Leader of the Conservative Party. This morning, I met the Chairman of the 1922 Committee
Sir Graham Brady; we've agreed that there will be a leadership election to be completed within the next week.
This will ensure that we remain on a path to deliver our fiscal plans and maintain our country's economic stability and national security. I will
remain as Prime Minister until a successor has been chosen. Thank you.
(END VIDEO CLIP)
ANDERSON: Well, Max Foster broke this news for us on CNN when it happened. And he joins me now from Abingdon Green, which is just outside the UK
Houses of Parliament. I'm sure it's pretty busy there today, Max.
She was elected as she herself rightly pointed out in her resignation speech by the Conservative Party, not by members of the British public or
at least not by the majority of the British public. Many believe that anything other than a general election at this point would be undemocratic.
But it's not clear that those who want a general election will get it is it?
MAX FOSTER, CNN LONDON CORRESPONDENT: Well, no, because the people that will effectively choose a general election will be the Conservative Party
and they if you look at any of the polling, it will be an absolute disaster for them, and they will all lose their jobs.
So there's some logic there, which suggests that there won't be a general election. But you're absolutely right they do not have a mandate. This is
the third Prime Minister we've had since a general election. So people didn't vote in Liz Truss in large numbers.
It was just a small group of Conservative Party members, this next Prime Minister will be voted in with even a smaller mandate, because it will be
parliamentary Members of Parliament, conservative members of parliament who will vote this person in certainly dozens of people, effectively.
So it's going to be very difficult. A lot of people suggesting the only way this government can survive is by calling a general election as soon as the
new Prime Minister is appointed.
But it's very difficult to see how that person is going to campaign on that when effectively campaigning to people who are going to lose their jobs if
they vote for it.
So it's a mess. It's a complete shambles, frankly. And we're all wondering what will come next? Of course, the campaigns have already started, Becky.
ANDERSON: Yes, I mean, you know, in all of this, and it is farcical the British public has a right to ask who is going to lead this country through
the UK's mounting crises, which are not all unique to the UK, it has to be said.
And we're talking about cost of living crisis, high energy bills, the likes of which are being experienced by many people around the world at this
point, but that, you know, the UK needs leadership, it doesn't have leadership at present.
One name that our viewers around the world will recognize is that of Boris Johnson and talk is at this point that he may throw his hat into the ring.
If he does, does he stand a chance of leading this Conservative Party once again and by default, becoming the UK Prime Minister just months after he
resigned that position?
FOSTER: Well, he hasn't ruled himself out, which is pretty telling in itself, isn't it? The issue is if you imagine the party very divided you've
got those support Boris Johnson at one end of the party the right of the party.
[11:05:00]
FOSTER: Then you've got those that support Rishi Sunak, who became his arch enemy, really, and government at the other end of the party, and he's got a
camp as well. So how do you bring those two camps together and find a consensus candidate?
It's very difficult to see either one of them winning at this point without the support of the other one. So we'll see how that plays out. And it's
difficult to see how they really come together on that. Other options, Penny Mordant she's seen as a key figure here.
Also, Ben Wallace he is the Defense Secretary. There are lots of options out there, but it's very difficult at this point to see a consensus
candidate coming through Boris Johnson, of course, is good in the crisis is good at campaigning.
Maybe those backbenchers can get over their differences and support him ultimately, let's see what Christiane thinks of all of this? Because
Christian, you know, it's difficult to see Rishi or Boris, gaining support the broad breadth of the party, but this is a crisis situation, maybe they
can bring things together.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Well Max, I'm actually really confused because the rules of the whole 1922 Committee process say
that a Prime Minister who's resigned cannot then throw his or her hat back into the ring.
But again, I'm not sure and I can't tell whether it's Boris Johnson's allies who are floating a trial balloon or who want perhaps their ally to
you know, be claimed by MPs. Obviously, there are many Conservative MPs who've told us including Crispin Blunt, the first of the Tory MPs to
actually call her resignation.
He was on the program earlier this week. And he lamented the fact that Boris Johnson wasn't around because he's such a good communicator. But
Boris Johnson's poll ratings were in the rock bottom at the point of which his departure was enforced, because of all those things that had been
swirling around in party gates and the whole lot.
So it's not clear at all whether this is the answer. And again, it's not clear at all, whether these are this is permissible by the rules. Look, as
Becky rightly said, there are a lot of countries who are facing, you know, a lot of economic headwinds, as they say in the parlance.
But the general consensus is that the British government, this Tory government, Liz Truss, personally got her into this by "Self-inflicted
wounds". This was entirely self-inflicted the idea of putting this mini budget out which started this cascade of aura back on September 23rd.
Without any of the independent financial fiscal not numerical data crunches, actually doing their job and going through their paces to see
whether it even would work which clearly the broad public and the markets felt wouldn't work.
So here we are wondering what next? So far the Biden Administration, which President Biden has been quite, you know, unusually critical of her plan
now saying they're watching very, very closely, what, transpires next. President Macron, on his way into a European meeting today in Brussels said
that what we all want, I guess, speaking for her, France, and for the EU, is stability in the UK.
And then I actually reached Sadiq Khan, a very senior figure in the Labor Party. As you know, he is the mayor of London. He's in Buenos Aires,
talking with World Mayors at a summit of World Mayors about the environment. And it was the whole issue of frocking that put this issue in
parliament over the top yesterday. In an event, I asked him about what they're all thinking all his international colleagues are thinking about
Britain, as this all unfolds. Here's what he said.
(BEGIN VIDEO CLIP)
SADIQ KHAN, LONDON MAYOR: Then I'll tell you this, Christian and him - with some of the leading Mayors from cities across the globe. Think of any major
city across the globe. The Mayors or leaders are here and we are a laughingstock our reputation has been diminished every minute Liz Truss has
stayed in office and people here this morning have been asking me what is going on in your country?
On the one hand you're showing global leadership for London on the other hand, your country is a laughingstock - here from the global south who
says, listen, we used to look upon the UK as providing certainty and calm. You have the mother of all Parliaments' we look to you for moral
leadership, and we are a laughingstock.
(END VIDEO CLIP)
AMANPOUR: Well Max, you know, this is a real tragedy to be frank for a country like Britain, which has always as the Mayor said, being looked to
with respect, and also this party, the Tory Party, being considered as one to have really got a handle on the fiscal rains, the financial, you know,
situation, the economic situation in this country.
And beyond the real pain that's been caused to the people of this country. It's not good for this country or for it so, you know interlocutors and
allies for Britain to be reduced to a laughingstock after for decades having been a major part of the Transatlantic Alliance.
[11:10:00]
AMANPOUR: And always fighting above and punching above its weight. And even now, it is working very hard and quite successfully to help bolster the
forces of freedom in Ukraine, whether it's by training whether it's by, you know weaponry and the rest being sent to Ukraine. So it is a very difficult
situation for this country and for everything that depends on it, not least for the people of this country.
FOSTER: OK, Christiane, thank you! Let's try to explore that idea. What does happen next? We don't have a written constitution in the UK, and it
makes things pretty confusing. But British Author, Political Commentator and Contemporary Historian Antony Selden is our best hope.
They're telling us what might happen next. It's completely unprecedented. So how do you think they're going to get through it?
ANTHONY SELDON, HISTORIAN: Well, they're going to have to find answers very quickly, aren't they, because Britain's never been in this position before,
of having such a rapid churn? And it's profoundly damaging to the financial stability of Britain and its position abroad.
So somehow, they're going to have to magic up a way of doing two things. One is finding a process that circumvents this three months long appeal to
the country that happened in the selection of Liz Truss, didn't that do well. And secondly, finding a candidate around who MPs and the party
Conservative Party in the country can unite.
FOSTER: To have an excuse, not to go to the wider party, because they appointed Liz Truss, which is seen as a disaster? So they can decide within
this House who's going to be the next leader? But as you say, that is completely divided. So how are they going to find the consensus might be
finding a system for that?
SELDON: They might, and before 1963, the Conservative Party selected their leader, by confidential conversations in smoke filled rooms, out of which
reflect the election of the Pope. Smoke appeared out of the chimney and suddenly, wham, bam, there was your new Prime Minister. And that could be
the kind of process that they go forward now.
FOSTER: Just describe the current model, the 1922 Committee users?
SELDON: Which after all, you have to say hadn't been a great success. We've now had the shortest Prime Minister in British history in 301 years. So
well, you know, that system, however great, it may have been, didn't work this, whatever new way can't be worse.
They've got to find somebody, look, who is really acceptable. I don't think Boris Johnson would be I think he'd be tricky. I don't think he'd be
stable. They need somebody frankly, dead boring, who can stabilize the markets, reassure people, and they are the real deal. But not somebody who
is so boring that they can't do well, for the party in the coming general election, only two years away.
FOSTER: That person will have even less of a mandate than Liz Truss. So is there any way this government can move forward without a general election
do you think?
SELDON: I think that if they make a hash of it, the Conservative Party, the outcry in the country will say, look, you are - you couldn't organize a
drinks party in a brewery as the expression goes, in Britain, you don't deserve to any longer be entrusted with government. There needs to be a
general election, at which point the conservatives will get wiped off.
FOSTER: Which is why they're not going to agree to it?
SELDON: But what can they do? I mean, it's in the building behind us, their conversations going on. And they somehow got to magic up somebody around
whom they can all unite not somebody who they will agree on, but who they agree to unite behind to avoid Armageddon, of a meltdown in which you know,
they'll lose their jobs.
I mean, this is their livelihood. This is their own mortgages so they're thinking of themselves as well as the country.
FOSTER: We don't know how King Charles may treat this situation. There is a constitutional role for him isn't that if this all goes into a complete
meltdown--
SELDON: Yes, it is.
FOSTER: They can't appoint anyone?
SELDON: Yes.
FOSTER: So it's going to be interesting to see how he responds in that situation when his mother would, of course, run a mile?
SELDON: I don't think she would. I mean, I think the reason the Monarch, the Monarchy survived in Britain is precisely because it manages to avoid
getting embroiled in these difficult political decisions in which you become tribal.
The moment you become tribal and you choose A over B or party X over party Y, you are in trouble because you're going to please some but alienate
others.
[11:15:00]
SELDON: The only way the monarchy can work is by staying right above it, and being somebody around who everybody can unite, as we saw during COVID,
when it was the Monarch who was the great unifying symbol rather than the Prime Minister.
FOSTER: OK Anthony Seldon as ever thanks you very much indeed for joining us! Three Prime Ministers then in one year, actually, it could be two with
Boris gets back in but we've got much more to come on the resignation of British Prime Minister Liz Truss after the break.
(COMMERCIAL BREAK)
FOSTER: At the end of this month Britain will likely have its third Prime Minister unless Boris Johnson gets back in and then it'll just be two.
After Liz Truss announced her resignation earlier on Wednesday, she was elected by the Conservative Party to help turn around the country's
troubled economy in her short 44 days in office.
Nothing has worked. She lost two key Cabinet Ministers and the budget she proposed went nowhere fast. Now her party is expected to pick another
leader in the next week. Let's bring in - let's look at the implications of the resignation.
Scott McLean joins us from 10 Downing Street with more. It was quite extraordinary how quickly this unfolded? And quite extraordinary the
process that we'll see unfolds from here, because we've never had a situation when a Prime Minister has been brought in with a week's notice.
It's going to be a pretty intense seven days, isn't it?
SCOTT MCLEAN, CNN CORRESPONDENT: Yes, I think you're absolutely right. This did happen quite quickly, Max. But I think that Liz Truss sort of managed
to read the room and read the political writing on the wall.
And obviously she did a calculation after she met with Sir Graham Brady, the Head of the 1922 Committee of Backbench MPs with the power potentially
to force a leadership challenge. And she obviously calculated that even if she worked to survive a leadership challenge from her party, she may not be
able to effectively govern given that her party is extremely unpopular with the public and her personal popularity ratings were pretty low as well.
And so the other thing is that she wasn't - was no longer even governing on the ideas that she had set out initially, certainly not the ones that she
had set out when it comes to the economy. The ideas that she had been sort of forced by the rest of her party to roll out were ones that resembled
ones that looked a lot like Rishi Sunak's policy.
Rishi Sunak had predicted that Liz Truss's policy of tax cuts, especially tax cuts for some of the wealthier members of society would only do more to
make inflation worse to exacerbate inflation and that seems to be precisely what has happened.
And so now you have a situation where the MPs of this party very much would like to install Rishi Sunak as the next Prime Minister, but Rishi Sunak is
not as popular with party members as he is with Party MPs.
[11:20:00]
MCLEAN: And so this is all happening within a seven day eight day span of time, we have will have a prime minister by Friday of next week. And so in
theory, the Party MP should whittle down the field of candidates until they get to just two and then allow the party members to vote on them.
The chairman of the party says that the member's theory at least should be able to have their say through a vote. Over the summer, postal ballots were
sent out to the party membership and then returned by post. And so this would have to happen obviously, a lot quicker likely something online that
brings up the obvious concerns about online security and that kind of a thing and the security of this election more generally.
And so it will be fascinating to see what comes out of this and whether ultimately, they do allow members to vote or whether perhaps if when it
gets down to two, the person with less votes of MP maybe just steps aside in hopes that that will help unify is very fractured party, Max.
FOSTER: We should take some of the pressure off Liz Truss in the premiership before was seen as a disaster certainly at the end, as well,
Theresa May was seen as a very weak premiership as well. So this is years of gradual degradation of the political system in the UK.
And it's amazing that you think that there isn't more protests on the street. I mean, the public is so disengaged from this whole process,
because it's been so unappealing to them for so long.
MCLEAN: Yes, look, some people may argue that it was the markets that sunk Liz Truss's premiership. But I think maybe a more logical argument is that
it was the public that ultimately did her in given her unpopularity. And earlier today, Max, I was just at a senior center in South London, talking
to people who are drawing a state pension.
And so they're living on a pretty fixed income at this stage of their lives. And they told me that look, they used to be able to go to the
grocery store, and they had enough disposable income to sort of buy whatever they wanted, and not really worry too, too much about the costs of
things within reason.
Now they're having to go and really make a budget and be very selective about what they are or not buying. And one person that that senior senator
told me that look, it seems like Liz Truss wasn't living in the real world that a tax cut for the richest people in society didn't make any sense.
She said that look, if Liz Truss came down here and talked to people like us and figured out what it was actually like trying to budget on the state
pension, she might have a better sense of what was a good idea and what was not. But clearly a tax cut in the midst of a cost of living crisis was not
a formula that was going to win her many fans in the eyes of the public. And clearly, that is maybe one amongst many factors that ultimately did her
in.
FOSTER: OK Scott in Downing Street, thank you. Let's bring in the Bianca to try to figure out what's happening next. Anthony Selden is the expert on
this area, and he was pretty baffled. But what are you hearing about the possible routes the party could go down?
BIANCA NOBILO, CNN CORRESPONDENT: Well, the party might emerge into the 21st century and have a big online component to this leadership contest.
The whole thing we know is truncated. And it's interesting because the last leadership contest we have which was generally understood to be unedifying,
for the Conservative Party blue on blue fighting, a lot of mudslinging behind the scenes that went on too long, most people said.
Now, this could be the other end of the spectrum, just a week to select a prime minister to inherit this poison Chalice of an economy divided party
and apathetic public. We understand that the membership might be involved by an online ballot; we don't have that confirmed yet.
But given the speed at which this leadership contest has to unfold, that could be likely because otherwise they'd have to change the rules. That
means in the next day or so we'd be expecting all of the declarations to come out. So each part of this contest is going to be much more intense
than usual.
FOSTER: An argument for Boris Johnson is that he at least he did have a mandate, and anyone else would have a tiny mandate if elected simply by a
group of MPs. The argument against is obviously that he's been tried and he's failed. But could he convinced the Rishi Sunak side of the party to
get on board potentially, you think?
NOBILO: Well, given that they were the ones that ultimately, you know, dealt the fatal blow, which led to that waterfall of resignations, and then
the end of Boris Johnson for the time being, at least, I'm not sure how likely that is. There's been criticism from MPs about that camp as well
agitating behind the scenes in recent days.
I'm not sure if that would be possible politically. In terms of Boris Johnson's fortunes, yes, those who supported him and were on his campaign
team in 2019 is saying he could be a figure to unite both the party and the members.
But I don't know I mean, not that long ago, Max, you and I were sitting here just a few months back talking about the damage that was perceived to
have been done by him to the reputation of the Conservative Party and he is a controversial figure and not exactly a unity candidate.
[11:25:00]
NOBILO: So, I understand why the name is out there, and Boris Johnson and his supporters will be trying to add fuel to that potential fire.
FOSTER: Where is the unity candidate? There's no one apparently.
NOBILO: No, there isn't one. And that's why when you speak to Conservative MPs, and they say, well, we don't know who the candidate is, but we
definitely have to get behind them and show discipline if we want to avoid a general election. And that's why as you've been discussing, there's been
chatter about a double ticket or perhaps a quarter four people that appeal to different elements of the party.
But that's not how British democracy - it's not how British democracy works. And obviously, the power will be retained by the Prime Minister. But
one thing is for sure about this leadership contest is it feels even less predictable than the last.
Because first of all, we don't know who's going to declare, we've had people that granted the last one already ruling themselves out. And also if
there's only one ballot or very frequent ballots over the next week, and they happen online, then we're not going to have that polling that we had
over the last six weeks to tell us who's in the lead, who isn't the effects of television debates, it will be a lot more of an unknown quantity.
FOSTER: The Conservative Party, the new prime minister will decide whether or not there'll be another election. Why are we talking about a general
election when it's political suicide to call a general election?
NOBILO: Yes, according to polls at the moment, the Conservative Party have been in power for 12 years would be annihilated. And actually, I was just
speaking to the leader of the Liberal Democrats Ed Davey, who's also pushing for a general election alongside the leader of the Labor Party,
Kier Starmer, obviously they would.
And this does tend to happen, you know, when they're displeased or they sense a weakness in the government, the opposition parties will call for a
general election. But we should remind our viewers they may already know that obviously, in this parliamentary democracy, people in the country vote
for a party that elects their own leader.
So in theory, they can elect as many leaders as they wanted, that is in their gift. It's not like America, which is a presidential democracy where
you elect individuals. That being said, because the British system is this un-codified system that's taken centuries to build itself into what it is
today.
It relies on this intangible of confidence, whether the Prime Minister and the government of the day can command the confidence of the House of
Commons and a majority in there. And that's the difficulty.
So if that becomes untenable, then maybe they do need to think about a general election, if they can't find a candidate that can actually unite
the party, then they will struggle.
FOSTER: So that should be called instead of this announcement of a new prime minister, you think.
NOBILO: I think that's highly unlikely. I mean, it would be political suicide at this time. There might be some Conservative MPs who feel like
that might be the right course of action. But for most people, it would be sending themselves into an almost certain defeat for a lot of the new
intake.
FOSTER: The one person that does seem to have won confidence of people in the public as politicians as well as Jeremy Hunt, the new Finance Minister
obviously managed to calm the market so well, but he's ruled himself out. And yet we know that he wants to be Prime Minister, but he's gotten to the
job twice and failed. Why is he, is he holding off? I mean, what's his strategy, probably in the last minute.
NOBILO: I mean, most of them there wants to be Prime Minister, they were completely honest. So Jeremy hunts run twice, he ran against Boris Johnson.
And he got down to the final two, and I believe a little sketchy, but Boris Johnson got 66 percent of the vote, and he got 33 percent or there-about.
And then in his last leadership contest, he got knocked out in one of the preliminary stages. So it didn't command enough support at the party. I
think he understands that he's just there's just no way he's going to be able to appeal to that hugely influential right of the party that
ultimately got Liz Truss elected and got her into that final too.
So I think that's why he's calling himself out. And also understanding that Chancellor may well be one of the best jobs he could possibly get at this
time. And it's a very important one to help the country through this economic crisis.
And the markets want that stability, so he could be quite well regarded if he stays the course and does the unpopular work that needs to be done to
stabilize the markets and the economy.
FOSTER: OK. We'll need someone to come up with you to talk to the markets effectively today and say that the process will carry on. It's down to
Graham Brady; I guess who represents the backbench MPs who will oversee this next process. Thanks, Bianca.
Just ahead, more of our special breaking news coverage the used helicopters out, it always means something's big is happening in London. Liz Truss is
out as Prime Minister. The pound appears to welcome that move, so not much of a compliment. Next up business editor-at- large weighs in on the UK
economy and its response.
(COMMERCIAL BREAK)
[11:30:00]
ANDERSON: Right more now on the drama unfolding in UK politics after a chaotic six weeks in Downing Street. Liz Truss says she is stepping down as
British Prime Minister.
(BEGIN VIDEO CLIP)
TRUSS: I have therefore spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party. There will be a
leadership election to be completed within the next week.
(END VIDEO CLIP)
ANDERSON: Well, the UK's main opposition Labor Party is now calling for an immediate general election. But the head of what is known as the
conservative 1922 Committee, which oversees Tory leadership contests says that a new prime minister should be in place before the end of this month.
Sources now saying Boris Johnson's allies believe he will stand again as leader of the Conservative Party and therefore Prime Minister. And that's
even though he left number 10 in disgrace. Well, Liz Truss will be the shortest serving British Prime Minister in history.
Her time in number 10 unleashed a run on the pound which is higher today and an intervention from the Bank of England; this all comes as UK grapples
with our cost of living crisis and a return to double digit inflation. Well, I want to bring in CNN's Richard Quest; he's on assignment in
Istanbul in Turkey.
And I think it's really interesting to just point out that this tax cutting, you know, growth platform that Liz Truss stood on, became prime
minister on and has now resigned as a result of its ineffectiveness. Its disastrous way of going about sort of trying to implement them, is actually
a very similar platform to that which the Republican Party stands on at present.
We just have a midterm elections, just three weeks out. I wonder how many of those Republican candidates will be looking at what is going on in the
UK at present and saying, well, have we got this right, Richard?
RICHARD QUEST, EDITOR-AT-LARGE: Yes, but there was nothing like the unfunded nature of the plans, the Republican Party, don't forget, the
Congress can come forward. But if the administration that will then come forward with its own tax policies, they approve it, but the administration
puts it forward.
So the gap between the ability of politician to say and execute versus in the UK where Liz Truss was able to say and execute is quite enormous. In
other words, the Republicans can bluster but they can't do. Meanwhile, over in Britain, Liz Truss absolutely did.
And what she did was so off the reservation, so absolutely unrealistic in terms of borrowing. That's what made the markets spooked. Look back at the
pound Becky, now the pound today is pretty much Even Stevens is put on a bit of weight.
[11:35:00]
QUEST: What I'm seeing from that is not so much encouragement that Britain is out of the woods, but that there is stability, an element of stability.
They sort of know that whoever comes next with Jeremy Hunt if he stands or not, he says he won't, but with the current chancellor there, then at least
moderate sensible, rational policy standard chance, and therefore, they're going to have to dig themselves out the hole.
ANDERSON: This is what Joe Biden had to say, just moments ago, on Liz Truss's announcement that she is resigning. Have a listen, Richard.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If Liz Truss did the right thing Mr. President?
JOE BIDEN, PRESIDENT OF THE UNITED STATES OF AMERICA: --did the right thing.
UNIDENTIFIED FEMALE:--
BIDEN: Well, that's a - Look she was a good partner on Russia and Ukraine, and the British are going to solve the problem. And she was a good partner.
UNIDENTIFIED MALE: Are you concerned about the spillover effects of the U.S. economy, given the political and economic --.
BIDEN: No, I don't think they're that consequential.
(END VIDEO CLIP)
ANDERSON: The British, he says are going to solve their problem. So certainly the British will be hoping that whoever comes in to lead this
party and therefore at present will be prime minister will be able to do just that. There is a real deficit of trust at present, isn't it?
QUEST: Yes, and don't forget Joe Biden at the weekend was the one who when speaking in an ice cream parlor, he said it was a mistake, the policy that
Liz Truss had put forward. He said he didn't think it was a good idea.
And he rubbished trickle-down economics, which of course he has to do, because it's very similar, as you pointed out, and you made the point, that
of the Republican Party's. There is a difference here. And I think we have to be clear Becky, between the policies on UK domestic economics and the
policies on Russia, Ukraine, international affairs.
And there, the British government has remained steadfast. And there's absolutely no quibbling as such, with what they have done there. So we've
even had Ben Wallace, the Defense Secretary here, the senior ministers, I should say, being over in Washington for meetings on Russia.
This is a homegrown, home developed, home executed, miserable policy that's now blown up and cause chaos and confusion, but it will be over in a week
or two.
ANDERSON: Richard standby, I want to bring in Anita Boateng, who's a former Special Adviser to the UK Cabinet Office and a partner at the
communications consultancy firm, Portland Communications. Anna, the Conservative Party could do with some decent communications at present,
what do you make of what we are witnessing?
ANITA BOATENG, PARTNER, PORTLAND COMMUNICATIONS: It's been extraordinary unprecedented. There are not enough adjectives to describe the gamut of
emotions. But most of Westminster was gripped by when Liz Truss made her announcement this morning. Of course, it was shocking, and yet completely
unsurprising.
But it has left the nation I imagine the markets, the country politics, the Conservative Party, - reeling with every MP you could think of, you know,
taking soundings about what potentially they might be able to do.
And this really does promise an absolutely extraordinary next week, all being if it takes longer than that, because we don't really know, until
there is a new leader and even then things may not yet settle down.
ANDERSON: The problem is this at the moment, isn't it that there are many people who say do the right thing by the British public and just call a
general election. That isn't the process as established in the UK.
But that is what people say would be the democratic thing to do. And that is certainly what the opposition Labor Party are calling for at the moment.
They would do, wouldn't they? Because they are way clear of the Conservative Party's Conservative Party in the polls.
And this is the problem, isn't it? The Tory party faces sort of existential threat at this point, were they to effectively call a general election and
leave this to the British public to sort out.
BOATENG: Yes, I wouldn't say existential. I mean, the Conservative Party is the most successful political party in history for a reason. It really
knows how to win elections and is serious about power. But I think possibly a kind of generation defining event has taken place with the Liz Truss
resignation, implosion, you know, 45 or six days into her premiership.
So I think that the party is acutely aware that it would be a difficult road back, particularly if you know if you look at some of those polls and
I think what we've seen with voters is less of that loyalty to a particular political party.
[11:40:00]
BOATENG: So I sort of look at those polls with not as much of a pinch of salt as I would like, as a conservative, right. So I think that that, that
is a reason. And the other reason that the Conservative MPs, I think, good reason feel they have a mandate from 2019, which does run until 2024.
And I think if you can somehow find a candidate around which, you know, MPs can coalesce. And crucially, I think, the pitch from a lot of MPs that
seeking to be the prime minister and party leader will be I will deliver the 2019 manifesto on which we have a kind of significant mandate.
They will hope that will be enough to stay in a hand of the political volatility that could see them crash into a general election.
ANDERSON: Anna, you're making a really good point about the 2019 election, let's be quite clear about this. Many people will say it wasn't the
Conservative Party who got a mandate at that point. It was Boris Johnson, who had the reins and got that party elected.
That isn't, that isn't actually the way things work. But many people will say that's really the atmosphere of that 2019 election. Is ally seem to
think that he's going to throw his hat into the ring to become leader of the Conservative Party and by default, British Prime Minister once again,
will he and would that be the right thing for the party and the country at this point?
BOATENG: I think that you are right, my source is also extended giving me the information that the serious conversation about whether or not he might
be the right person to row in at this particular moment in time. I think and also, I think there's a very strong feeling from that camp that
ultimately the members if it does end up going to a membership perhaps for an online ballot, they would choose Boris Johnson without hesitation.
And I slightly suspect they might be right about that latter point. The question and the challenge Boris Johnson has always had is amongst MPs and
to persuade them that they wouldn't be some of the unforced errors that took place that resulted in him going.
But I think there would also be a significant challenge around the economic direction of that government because about Jeremy Hunt was brought in
specifically to stabilize the market, he's been talking about fiscal prudence.
And all of that is due to be set out on the 31st of October. Boris Johnson has a very different vision for the economy, much more higher spending
instance. And so there's a real challenge there about what that picture might look like and how you might bring those two ideas together.
ANDERSON: Anna, good to have your perspective. Interesting times as - I would say we're going to take a very short break at this point, folks. So
Liz Truss has resigned as British Prime Minister, just two months into the job.
She is or will be the shortest serving British Prime Minister in history. This was her coming out of number 10. Just a couple of hours to go to
deliver what was it 90 seconds or so speech, explaining why, more on that after this.
(COMMERCIAL BREAK)
[11:45:00]
FOSTER: 45 days in counting, that's how long Britain's second prime minister this year has been in office. Liz Truss made a bombshell
announcement today, saying she's resigning. Liz Truss will become the shortest serving Prime Minister in British history.
She says she came into office at a time of great economic and international instability and set out a vision for a low tax high growth economy, but
couldn't deliver the mandate in which she was elected by the Conservative Party.
She'll remain in office until a successor is Chosen. Allies a former Prime Minister Boris Johnson says he will stand in the party's leadership
contest.
Liz Truss's time at number 10 was short but her career in British politics wasn't. Bianca looks back at her story so far.
(BEGIN VIDEOTAPE)
NOBILO (voice over): Liz Truss resigned after just 45 days as Britain's Prime Minister, the shortest tenure in history. Markets tanked borrowing
costs soared and poll numbers slumped for a governing party in disarray.
TRUSS: I want to be honest, this is difficult.
NOBILO (voice over): Truss was made leader following Boris Johnson's departure chosen by less than a 10th of 1 percent of the UK electorate, a
slither of the conservative base more right wing older and whiter than the average voter.
TRUSS: I have a bold plan to grow the economy through tax cuts and reform.
NOBILO (voice over): Any prospect of a honeymoon - period was short lived. Queen Elizabeth the Second died on her second day in office. Alongside
former Finance Minister Kwasi kwarteng Truss championed right wing economic policy, announcing tax cuts for the rich and no cap on bankers bonuses. The
perceived unfairness fueling public fury as the UK began grappling with a cost of living crisis.
The pound plummeted against the dollar and the Bank of England was forced to step in to shore up market confidence. The IMF criticized the plan,
saying it would likely increase inequality and worsen inflation. 38 days into office, Truss sat kwarteng.
Without her friend and ideological ally, the Prime Minister appeared defeated labeled a lame duck unable to unite her party, let alone lead the
country. Former Health Secretary Jeremy Hunt came in as the new Chancellor, his first order of business to throw out most of the Prime Minister's
economic promises.
JEREMY HUNT, BRITISH FINANCE MINISTER: Firstly, we will reverse almost all the tax measures announced in the growth plan three weeks ago.
NOBILO (voice over): Truss had already u-turned on cutting the top rate of tax and cutting corporation tax, her credibility in tatters.
UNIDENTIFIED MALE: Two year energy freeze gone, tax free shopping gone, economic credibility gone.
TRUSS: Now I recognize we have made mistakes. I'm sorry for those mistakes.
ROBERT HAYWARD, BRITISH HOUSE OF LORDS: Probably one of the biggest errors that Liz Truss made was at the point she became prime minister. The only
people she appointed were her supporters. It was a cabinet of extreme loyalists. And therefore even before she started in a fact, she had
opponents on her own bench and some of them seriously, well regarded politicians.
NOBILO (voice over): Truss's premiership was brief and chaotic. A former anti-Monaco's to --true blue Tory a remainder turned Brexitier. Her spell
as prime minister was plagued by inconsistency and instability, both the victim and architect of deep political misfortune. Bianca Nobilo, CNN,
London.
(END VIDEOTAPE)
FOSTER: Liz Truss out as Prime Minister of the United Kingdom, her resignation hurling Britain into chaos, what went wrong? What comes next?
Our breaking coverage continues after this short break.
(COMMERCIAL BREAK)
[11:50:00]
ANDERSON: UK Prime Minister Liz Truss is resigning bowing to mounting pressure after a failed economic plan that sank the British financial
markets. The announcement - Britain into chaos lawmakers there must now elect a new leader at lightning speed. She was only in the job or on the
job for 45 days.
Well of course high on the list of concerns for the next British Prime Minister will be the war in Ukraine. CNN International Diplomatic Editor
Nic Robertson is on assignment in Kyiv in Ukraine and joins us now.
And Nic, Liz Truss inherited a steadfast position on Ukraine and Russia's war in that country from her predecessor, Boris Johnson and President
Volodymyr Zelenskyy made no bones in showing his appreciation for Britain's position, he will hope that, that position continues in the same vein,
correct.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: And he's not the only leader with a vested interest in seeing Ukraine succeed against Russia here
who's going to feel the same way. Boris Johnson absolutely had a strong connection with Volodymyr Zelenskyy, the Ukrainian President, he visited
here twice.
And Zelenskyy was full of praise of Boris Johnson, a lot. I think one of the features of Liz Truss's government was the continuity of the support
for Ukraine. And that was something that was liked here in Ukraine. And it was embodied in the sort of fact that Ben Wallace, the Defense Minister was
one of the Secretary of Defense was one of the only top government officials who remained in posts from Boris Johnson's cabinet.
So there was that message of continuity. We've heard from President Biden today saying, you know that he was - Liz Truss to be a good partner,
although he did criticize her economic policies. And of course, the United States being a huge supporter of Ukraine wants a steadfast and steady UK to
be, you know, at its side as an ally with the military support, humanitarian support, economic support.
And that's a view that's shared across Europe as well. French President Emmanuel Macron has said it's important that the UK returns to the
stability because it is a big war going on here. It does affect Europe, it has repercussions.
And you can't afford to have one weak link in the chain. And to that degree, Liz Truss had become something of a weak link. Remember back to the
beginning of this year, and it was only the beginning of this year when she was in Moscow as foreign secretary.
She was trolled by the spokeswoman at the ministry of Foreign Affairs Maria Zakharova, who is again trolling Liz Truss today calling her a disgrace. So
when there's weakness and wobbles in the British government, Russia will exploit it and the allies look to get that continuity and confidence back
in a steady British government.
ANDERSON: And that's the point, isn't it? And Ben Wallace, the Defense Minister has been spoken of as a successor, very unlikely that it will be
him a new leader, whoever that is, will need to rebuild the country's reputation at this point. And that won't be an easy task. Will it?
ROBERTSON: Absolutely not. Look 2016 was a watershed the United States didn't want Britain to vote for Brexit. Back then the EU certainly gone
through all kinds of twists and turns and prime relations with the UK. And that confidence of Britain being a steady partner, a reliable interlocutor
has been thrown in the air; you know parts of Brexit wrangling with France, wrangling with the EU, are still not done.
[11:55:00]
ROBERTSON: And all of that creates an uneasy atmosphere and it erodes the trust and, you know, strength of UK confidence in the UK as a reliable
partner that has been built over generations. When you wobble that and people lose faith in it, it takes time to rebuild it, and the UK is not in
a good place with its international partners because of this. It can be rebuilt, but it's going to have to be worked at.
ANDERSON: Many people say the, the sort of leadership vacuum has been since Brexit since 2017. Nic, thank you very much indeed for that. And thank you
viewers, folks for watching. That was "Connect the World". CNN's coverage of what is turmoil in UK politics continues after this short break, don't
go away.
(COMMERCIAL BREAK)
[12:00:00]
END
