She said she was elected “with a mandate to change this”, adding: “We delivered on energy bills.”
“I recognise, though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party,” she added.
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“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.”
Ms Truss will remain as prime minister until her successor has been chosen.
Sir Graham said the committee expects to conclude a leadership election by Friday 28 October with a new PM in place in time for the 31 October fiscal statement.
He said Tory members are expected to be able to vote but the candidates could be whittled down to just one.
A senior Tory source suggested MPs will have to put their nominations in by Monday.
Ms Truss’s resignation came just a little over 24 hours after she told MPs she was a “fighter, not a quitter”.
Who will be the next PM?
There has been much speculation about who could replace Ms Truss, with new chancellor Jeremy Hunt one of the main names being suggested.
However, Sky News’ deputy political editor Sam Coates said he has been told Mr Hunt will not stand.
Other Tory MPs being suggested as running are Penny Mordaunt, Rishi Sunak, Kemi Badenoch, and even ex-PM Boris Johnson.
Former leadership candidate Tom Tugendhat has ruled himself out.
Sky News understands Commons leader Ms Mordaunt and Justice Secretary Brandon Lewis are taking soundings from Tory MPs over whether to put their hats in the ring.
Loyal Johnson supporter Tory MP James Duddridge tweeted his support for the former PM, who is currently on holiday in the Caribbean.
“I hope you enjoyed your holiday boss,” he said.
“Time to come back. Few issues at the office that need addressing. #bringbackboris.”
Labour leader Sir Keir Starmer called for a general election “now” as he said the British public “must have a chance at a fresh start”.
He added: “The Tories cannot respond to their latest shambles by yet again simply clicking their fingers and shuffling the people at the top without the consent of the British people.
“They do not have a mandate to put the country through yet another experiment; Britain is not their personal fiefdom to run how they wish.”
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1:06
Labour leader calls for general election now
The start of Truss’s downfall
Ms Truss’ downfall began when her former chancellor Kwasi Kwarteng announced his mini-budget on 23 September, which prompted weeks of economic turmoil and eventually led to him being sacked last Friday.
Mr Hunt, who voted for Rishi Sunak during the leadership campaign, then took over as chancellor and U-turned on the majority of the unfunded mini-budget tax cuts on Monday – further undercutting Ms Truss’s authority.
On Wednesday afternoon, her home secretary, Suella Braverman, then quit after saying she had breached security rules by sending a policy message to a colleague over her personal email by mistake.
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1:49
PM: ‘I’m a fighter, not a quitter’
It only got worse on Wednesday evening after confusion over whether Labour’s opposition day vote on fracking was actually a confidence vote in the government or not – which resulted in allegations of physical “manhandling” of Tory MPs by colleagues.
Some Tory MPs had publicly called for Ms Truss’s resignation before that but in the hours before she quit, a flurry of Tory MPs revealed they wanted her to go.
Conservative Party rules prevent a leader from facing a confidence vote in the first 12 months of their tenure.
But it is understood that after a significant number of MPs wrote to Sir Graham Brady, chair of the 1922 Committee of backbench Tory MPs, calling for her to go, a decision was made that she could not stay.
Speaking to reporters in front of his residence at Rideau Cottage, in the country’s capital, Ottawa, he said “internal battles” mean that he “cannot be the best option” in the next election.
“I don’t easily back down faced with a fight, especially a very important one for our party and the country. But I do this job because the interests of Canadians and the well-being of democracy is something that I hold dear.
“A new prime minister and leader of the Liberal Party will carry its values and ideals into that next election. I am excited to see that process unfold in the months ahead.”
Mr Trudeau, who has been prime minister since 2015, faced calls to quit from a chorus of his MPs amid poor showings in opinion polls.
He came under further pressure after his finance minister, Chrystia Freeland, resigned in December over clashes on policy.
The disagreements included how to handle possible US tariffs imposed by Donald Trump‘s incoming administration.
Mr Trudeau’s resignation comes as the polls show his party is likely to suffer a heavy defeat to the official opposition Conservatives in an election that must be held by late October.
The Liberals must now name an interim leader to take over as prime minister ahead of a special leadership convention.
Mr Trudeau came to power 10 years ago following a decade of Conservative Party rule and was initially praised for returning the country to its liberal past.
But he has become deeply unpopular with voters in recent years over a range of issues, including the soaring cost of food and housing and surging immigration.
He is the eldest son of Pierre Trudeau, one of Canada’s most famous prime ministers, who led the country from 1968 to 1979 and from 1980 to 1984.
The political upheaval comes at a difficult moment for Canada internationally.
US President-elect Donald Trump has threatened to impose 25% tariffs on all Canadian goods if Ottawa does not stem what Mr Trump calls a flow of migrants and drugs into the US.
Many fewer of each cross into the US from Canada than from Mexico, which Mr Trump has also threatened.
Few one-time golden boys manage to retain their lustre long into political office.
Barack Obama just about held on to his, leaving the US presidency with his approval rating high despite his party’s 2016 loss to Donald Trump.
But Emmanuel Macron is faltering in France and Justin Trudeau steps down as head of Canada’sliberal party with his popularity in shreds. So much for Western liberal values.
In the high tides of inflation and immigration, those who were their supposed flag-bearers are no longer what electorates want.
For Mr Trudeau, it is a dramatic reckoning. His approval ratings have dropped from 65% at their highest in September 2016 to 22% now, according to the “Trudeau Tracker” from Canada’s non-profit Angus Reid Institute.
The sudden departure of his finance minister and key political ally Chrystia Freeland last month dealt his leadership a body blow, just as Canada readies itself for a potential trade war with the US which, she argued in a bracing resignation letter, his government was not taking seriously enough.
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1:31
“Parliament has been paralysed for months,” Trudeau says
The man Mr Trump recently trolled as “Governor of the ‘Great State of Canada’ or ’51st (US) state'”, Mr Trudeau was as close to Canadian political royalty as it gets.
The son of the country’s 15th prime minister, Pierre Trudeau, he was famously toasted by US president Richard Nixon as “the future prime minister of Canada” when he joined his father on a state visit as a toddler.
Aged five, he met the late Queen for the first time. “Thank you for making me feel so old”, she remarked drily at a re-meet in Malta almost 40 years later.
He has led Canada’s liberal party since 2013 and served as the country’s 23rd prime minister for almost a decade.
Mr Trudeau won a resounding electoral victory in 2015 and secured the premiership through two subsequent elections, though as head of a minority government.
He made significant inroads against poverty in Canada, worked hard on nation to nation reconciliation with Canada’s indigenous communities, secured an effective trade deal with the US and Mexico in 2016 and managed to keep the public mostly on-side through the COVID-19 pandemic.
But he was a polarising figure. Holidays in exotic climes like a trip to the Bahamas in 2016 to an island belonging to the Aga Khan made him seem elitist and out of touch.
There was embarrassment when blackface images surfaced from his early years as a teacher, for which he apologised profusely.
His supposed liberal credentials smacked of double standards when he invoked emergency powers to crush truckers’ protests in 2022.
But it was the economic aftermath of the pandemic, with Canada suffering an acute housing shortage, immigration leaping under his premiership and the cost of living hitting households across the board which really piled on the pressure.
In those, Canada is not unique. But the opposition conservatives and the public at large clearly want change, and Mr Trudeau has responded.
He has announced his intention to resign as party leader and prime minister after the Liberals selects their next leader.
Mr Trudeau’s legacy may shine brighter with a little hindsight. But now is not that moment.
The question is whether his conservative opposition will fare any better in an increasingly combative geopolitical environment if, as seems likely, a candidate of their choosing wins a federal election due at some point this year.
Donkey karts loaded with wrapped parcels of unknown goods weave around the large puddles of water left in the dried riverbed.
Young men quickly hop over laid bricks to bridge the puddles followed by women treading carefully with babies on their backs.
The Limpopo River’s seasonal dryness is a natural pathway for those moving intoSouth Africa from Zimbabwe illegally.
A sandy narrow beach undisturbed by border patrols with crossers chatting peacefully under trees on both banks as men furiously load and unload smuggled goods on the roadside.
Against the anti-immigration rage and xenophobia boiling over in South Africa’s urban centres, the tranquillity and ease of the border jumping is astonishingly calm.
“You can’t stop someone who is suffering. They have to find any means to come find food,” one man tells us anonymously as he crosses illegally.
At 55 years old, he remembers the 3,500-volt electric fence called the“snake of fire” installed here by the Apartheid regime.
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Hundreds of women and children escaping conflict in the late 1980s and early 1990s were electrocuted.
Today, people fleeing drought and economic strife are smuggled across or walking through border blindspots like this one.
“Now, it’s easy,” he says. “There is no border authority here.”
He crosses regularly and always illegally. While he laughs at the lack of border agents, he says he has been stopped by soldiers in the past.
“They send us back but then the next day you try to come back and it is fine.”
We find a few soldiers on our way back to the main road. They look confused by our presence but unphased. It is hard to believe they are unaware of the streams of people and goods moving across the dried riverbed just a few hundred metres away.
Border ‘fence’ trampled and full of holes
We drive along the border fence to get to the official border post into Zimbabwe, Beitbridge.
“Fence” is a generous term for the knee-height barbed wire laid across 25 miles of South Africa’s northern edges in 2020. Some sections are completely trampled, and others are gaping with holes.
The concrete fortress is a drastic change to the soft, sandy riverbed. Queues dismantle and reassemble as eager crowds rush from one building to another as instructions change.
Zimbabweans can live, work and study in South Africa on a Zimbabwean exemption permit, but many like Precious, a mother-of-three, cannot even afford a passport.
When we meet her at a women’s shelter in the border town of Musina, she says she only has $30 (£23.90) to find work in South Africa and that a passport costs $50 (£39.80).
“My husband is disabled and can’t work or do anything. I’m the only one doing everything – school, food, everything. I’m the one who has to take care of the kids and that situation makes me come here to find something,” she says tearfully before breaking down.
The shelter next door is home to trafficked children that were rescued. Other shelters are full of men looking for work.
Musina is a stagnant sanctuary for Zimbabweans searching for a better life who become paralysed here – a sign of the declining state of Zimbabwe and the growing hostility deeper in South Africa.
In Johannesburg, South Africa’s economic centre, illegal immigrants are facing raids and deportations organised by the Ministry of Home Affairs at the behest of popular discontent.
The heavy-handed escalation in the interior sits in stark contrast to the lax border control.
“I wonder how serious our government is about dealing with immigration,” says Nomzamo Zondo, human rights attorney and executive director of the Socio-Economic Rights Institute of South Africa (SERI), as we walk through Johannesburg’s derelict inner city.
“I think part of it is that the South Africa we want to build is one that wants to welcome its neighbours and doesn’t forget the people that welcomed us when we didn’t have a home – and that is why I think they are so poor at maintaining the borders.”
She adds: “But then the call has to be one that says once you are here, how do we make sure you are regularised here, that you know who you are, and contribute to the economy at this point in time.”
Climate of anti-migrant hate
In 1994 as South Africa’s first democratically elected president, Nelson Mandela ordered that all electric fences be taken down.
His dream for South Africa to become a pan-African haven for civilians of neighbouring countries that provided sanctuary for fighters in the anti-Apartheid movement was criticised by local constituents back then.
Now in a climate of increasing anti-migrant hate, that vision is rejected outright.
“I think that is the highest level of sell-out. When South Africans were in exile, they were in camps and they were restricted to go to other parts of those countries,” says Bungani Thusi, a member of anti-immigrant movement Operation Dudula, at a protest in Soweto.
He is wearing faux military fatigues and has the upright position of an officer heading into battle.
“Why do you allow foreigners to go all over South Africa and run businesses and make girlfriends?” he adds, with all the seriousness of protest.
“South Africans can’t even have their own girlfriends because the foreigners have taken over the girlfriend space.”