Liz Truss resigned as British Prime Minister just 45 days after being appointed, brought down by an economic program that sent shockwaves through financial markets last month and divided her Conservative Party.

Speaking outside the door of Number 10 Downing Street on Thursday afternoon, Truss accepted she could not deliver the promises she made when she was running for Conservative leader, having lost the faith of her party.

Truss was elected by the Tory membership in September, but lost authority after a series of U-turns, sackings and resignations.

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A leadership election will be completed by October 28 to replace Truss, who is the shortest serving prime minister in UK history. George Canning previously held the record, serving for just 119 days before he died in 1827.

"I cannot deliver the mandate on which I was elected by the Conservative Party," said Truss." I have therefore spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party."

The background

Earlier, Conservative Party officials had gathered at Downing Street while a growing number of her own lawmakers called on her to quit.

Appointed on September 6, Truss was forced to sack her finance minister and closest political ally, Kwasi Kwarteng, and abandon almost all her economic programme after their plans for vast unfunded tax cuts crashed the pound and British bonds. Approval ratings for her and her Conservative Party collapsed.

On Wednesday she lost the second of the government's four most senior ministers, faced laughter as she tried to defend her record to parliament, and saw her lawmakers openly quarrel over policy, deepening the sense of chaos at Westminster.

New finance minister Jeremy Hunt is now racing to find tens of billions of pounds of spending cuts to try to reassure investors and rebuild the UK's fiscal reputation as the economy heads into recession and with inflation at a 40-year high.

What happens next

The contest to replace Truss as Prime Minister and Conservative Party leader should be concluded by October 28, said Graham Brady, the chair of the Conservative Party's kingmaking 1922 Committee.

Rishi Sunak and Penny Mordaunt, two contenders in the previous leadership contest this year, are believed to be in the running to become the next Prime Minister, while some claim Truss's predecessor Boris Johnson could be interested in returning.

Russia's foreign ministry welcomed the news, saying Truss was a "disgrace" of a leader who would be remembered for her "catastrophic illiteracy."

French President Emmanuel Macron said it was important the UK found "stability as soon as possible," while a White House spokesperson said the U.S. would have a close relationship with whoever replaced Truss. 

Resignation speech: The full text

"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 has been 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 and 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 recognise though, given the 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."