London Daily

Focus on the big picture.
Wednesday, Oct 21, 2026

Bills, Russia and angry Tories: key challenges Liz Truss will face as PM

Bills, Russia and angry Tories: key challenges Liz Truss will face as PM

Will the likely next leader be able to stick to her tax cut pledges given the cost of living crisis and strain on the NHS?

If, as widely presumed, Liz Truss becomes the new prime minister this week, she will face a mass of policy challenges of a variety and scale almost unprecedented for a postwar leader, particularly a brand new one. Truss will be fully aware of the extent of her task, if not always necessarily how she will tackle it. These are the main challenges:

Energy prices and cost of living


How Truss tackles this is likely to define her prime ministership and the fate of the UK in the coming years. And people want answers very quickly.

Truss has fought her Tory leadership campaign by relentlessly focusing on calls for tax cuts, and has been sceptical of what she called “handouts” – that is, direct government help for people facing energy prices that are rising so fast that millions of households will simply not be able to pay them.

Given the scale of the crises, critics say this seems politically and morally untenable. Truss has been careful to not rule out more assistance, and perhaps the biggest political decisions she will ever make will be to decide how energetically and radically she does intervene to assist people.

Take bold and expensive action, and Truss risks alienating the small state, free market Tory MPs and members who put her into No 10. Do too little, and the UK could see an economic, social and humanitarian emergency in which unaffordable energy bills create mass business closures, widespread destitution, and thousands of extra deaths over the winter.

It is hard to overstate the difficulty of the task she faces, something emphasised by the fact the government is doing contingency planning for possible energy rationing and blackouts. Police chiefs are reportedly even making preparations for the possibility of riots or wider civil unrest.

NHS and social care


Poverty and health campaigners would argue that this is in many ways another element of the cost of living crisis, given that the likelihood of large numbers of people forced to live in freezing homes or skip meals will exacerbate already crippling pressures on the health service.

Most prime ministers taking over in early September could prepare for an expected crisis in the NHS. Truss already has one, with ambulance responses routinely delayed for hours amid a shortage of beds, and a massive backlog of procedures and operations, a lot of it due to the knock-on effects of the Covid pandemic.

The ambulance delays in particular are a factor of the continued poor state of adult social care, with many beds occupied by older, frail patients who simply have nowhere to go. Boris Johnson promised to transform social care with money from an increase in national insurance. Truss has pledged to reverse that. Among the many health-based tough decisions she faces is how to pay for everything.

Uniting the Conservative party


Given that Truss’s last three predecessors as Tory leader either resigned or were forced out long before they hoped to depart, this is something of an ongoing problem, but it is one she will face perhaps more acutely than anyone.

Truss’s pitch to Tory members was deliberately quite one-note in ideological terms: a small state, low tax self-styled heir to Thatcher, implacable over Brexit and keen on culture war dividing lines.

This played well in the leadership race, but many Conservative MPs are less right wing than the membership, even following the cull of more liberal, one nation Tories under Johnson. In the initial stage of the leadership contest, Truss received the backing of fewer than a third of her fellow MPs, and many remain sceptical about her ideology and her abilities.

A key test will come with her cabinet. Bringing in a range of ministers from various wings of the party could help push MPs together, and perhaps mitigate her reputation for political blinkered-ness. But it would necessarily annoy loyalists who miss out on top jobs.

There is also the legacy of the bruising leadership campaign in which Truss’s rival, Rishi Sunak, was scathing about her economic plans. The former chancellor has all but ruled out a role in her government, and could become a figurehead for disaffected MPs who will seize on any mishaps and mistakes.

While she inherits a Commons working majority of 71, parliamentary life could be difficult with a series of big-hitters likely to be on the backbenches, and predictions that enough Tory MPs are so unsupportive that her effective majority could be nearer 10.

Ukraine


Compared with the previous two policy areas, this is not one where Truss will have to think overly long about her options. As Johnson’s foreign secretary, and the self-styled continuity-Boris candidate, Truss will maintain his steadfast support for Ukraine’s battle against Russian invaders. One of the few near certainties of Truss’s early weeks in office will be images of her in Kyiv alongside Volodymyr Zelenskiy.

But in common with other world leaders, Truss will face difficulties as the war inches forward, with no apparent resolution in sight, especially once the consequences of the energy price crisis, much of it connected to the war, begin to bite.

Truss will doubtless stay committed to Ukraine. But as its repercussions are felt, it seems likely she will face more voices, within the Conservative party and more widely, seeking an alternative plan.

Election or not?


Given the size of the policy tasks facing Truss, this could seem an irrelevance. But if Truss is to be more than a third interim Tory prime minister, it will be a crucial judgement.

The official line from Team Truss is that no election will happen until the current term ends, bringing an election in December 2024, or even January 2025. But she could face difficulties pushing through legislation, especially in the Lords, based on Johnson’s 2019 mandate, one based on a notably different policy platform.

The energy crisis also makes the prospect of an election unlikely. But should Truss see any sort of poll bounce, or she generates or stumbles into some sort of economic respite, then the temptation to roll the dice could be overwhelming.

One of the defining lessons of the last couple of decades of UK politics was Gordon Brown’s failure to call an election in spring 2008, when the polling was favourable and speculation was allowed to run free. Instead, he delayed, had to wait for the end of his term, and lost.

Newsletter

Related Articles

0:00
0:00
Close
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
×