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Speaker 1: My name is Lily Maddon and I'm a proud Arunda

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Speaker 1: Bunjelung Calcottin woman from Gadighl Country. The Daily oz acknowledges

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Speaker 1: that this podcast is recorded on the lands of the

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Speaker 1: Gadighl people and pays respect to all Aboriginal and Torres

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Speaker 1: Strait Island and nations. We pay our respects to the

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Speaker 1: first peoples of these countries, both past and present.

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Speaker 2: Good morning and welcome to the Daily os. It's Wednesday,

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Speaker 2: the nineteenth of October.

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Speaker 3: I'm Sam, I'm Zara.

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Speaker 2: UK PM Liz Trust took office on the sixth of

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Speaker 2: September this year, and in the forty three days since then,

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Speaker 2: she's lost her chancellor, tanks the pound and lost the

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Speaker 2: support of much of her own party, the Conservatives. In

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Speaker 2: today's deep dive will explain why the UK is having

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Speaker 2: trust issues with its new PM and where they could

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Speaker 2: go from here. But first, Sarah, what is making headlines

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Speaker 2: this morning?

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Speaker 3: Prime Minister Anthony Albanizi met his singapore Ian counterpart, Lie

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Speaker 3: Shecheng Long in Canberra yesterday. The two leaders signed a

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Speaker 3: bilateral Green Economy agreement, said to quote take action on

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Speaker 3: climate change and strengthen trade and investment in clean energy,

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Speaker 3: while Lee also offered his support in responding to the

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Speaker 3: data breach at Optus, which is owned by a Singaporean conglomerate.

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Speaker 2: The Victorian government has announced new measures for school leaders

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Speaker 2: who have been affected by the recent floods ahead of

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Speaker 2: their final exams next week. All students impacted by floods

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Speaker 2: will be able to get a derived exam score based

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Speaker 2: on their performance across the year, which quote reflects the

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Speaker 2: level of achievement that would be expected.

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Speaker 3: US Secretary of State Anthony Blincn has warned that China

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Speaker 3: is pursuing reunification plans with Taiwan much faster than what

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Speaker 3: was previously expected. Blincn said he believed China would use

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Speaker 3: coercion if necessary for reunification with Taiwan, saying this was

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Speaker 3: quote disrupting the status quota and creating tremendous tension.

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Speaker 2: And today's good news. Co founders of the German biotechnology

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Speaker 2: company that helped to create the COVID nineteen fires a

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Speaker 2: vaccine have said that the vaccine to treat cancer could

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Speaker 2: be created by twenty thirty. It's believed the COVID vaccine

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Speaker 2: could be repurposed to attack cancer cells instead of the

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Speaker 2: queen virus.

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Speaker 3: Sam, you set it up pretty well in the intro

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Speaker 3: of this podcast. It has not been a good couple

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Speaker 3: of weeks for UKPM Liz Trust. Yeah, it simply couldn't

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Speaker 3: really be worse at this stage. Take us through this

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Speaker 3: whole journey from the beginning. How did we get here?

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Speaker 2: Zara. To say that Liz Trust has had a rocky

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Speaker 2: start would be underplaying it. The UK's new Prime Minister

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Speaker 2: has experienced the fact that the Queen died just a

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Speaker 2: couple of days after her election. The UK was then

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Speaker 2: plunged into a fortnight of morning when no parliamentary business

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Speaker 2: could go on. But her biggest problem is that she's

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Speaker 2: had to walk back a lot of her signature economic

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Speaker 2: policies in the face of massive financial downturn and outcry

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Speaker 2: from the general British public, the media and her own party.

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Speaker 2: In Parliament this week, the opposition accused her of quote

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Speaker 2: cowering under a desk to avoid answering tough questions about

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Speaker 2: how she plans to pull the UK out of their

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Speaker 2: economic nosedive. Most of this started with her mini budget,

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Speaker 2: which she devised with her chancellor, and that's the equivalent

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Speaker 2: of our Treasurer, Quasi Qua Teng.

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Speaker 3: And we've heard Quasi Qua Teng's name a fair bit

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Speaker 3: over the last couple of weeks, but then again over

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Speaker 3: the weekend because he was kicked out of the job,

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Speaker 3: wasn't he He.

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Speaker 2: Got kicked out of the job last week? He was

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Speaker 2: one of Liz Trust's closest colleagues. And the fact that

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Speaker 2: it's relatively rare for pms to sack their chancellors, who

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Speaker 2: are typically very experienced, knowledgeable ministers, really gives you a

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Speaker 2: sense of how bad this crisis is.

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Speaker 3: Okay, so remind me why the mini budget was so

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Speaker 3: controversial that a chancellor lost his job over it.

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Speaker 2: So when Liz Truss came into office the UK, and

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Speaker 2: I think it's fair to say the rest of the

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Speaker 2: world was already in economic hot water, with rapidly rising prices,

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Speaker 2: looming job losses, and a very cold winter for Europe

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Speaker 2: around the corner. And that's because of low gas supply

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Speaker 2: due to the conflict in Ukraine. Now, Trust and Quarteng's

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Speaker 2: response was to push forward with a suite of big

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Speaker 2: tax cuts for the highest earners, which they said would

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Speaker 2: stimulate the economy.

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Speaker 3: Yes, so just a little bit of tricker down economics.

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Speaker 2: And they paid for it by taking on more debt.

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Speaker 2: The British pounds sank to its lowest level ever as

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Speaker 2: international investors lost confidence in the UK market and sold

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Speaker 2: off their pounds at a breakneck pace. The pounds decrease

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Speaker 2: in value means imported goods are much more expensive in

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Speaker 2: the UK, which is bad news for a country that

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Speaker 2: imports a hell of a lot of things, including medicine,

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Speaker 2: cars and importantly petrol.

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Speaker 3: Okay, and how did this controversial mini budget actually affect

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Speaker 3: the government aside from the job losses we've already heard, so.

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Speaker 2: There was only one thing falling quicker than the pounds value,

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Speaker 2: and that was the party's approval ratings. It wasn't an

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Speaker 2: ideal situation for a new prime minister replacing Boris Johnson.

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Speaker 2: Remember he was sent out partly because of low public

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Speaker 2: opinion following scandals of parties in government offices during the

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Speaker 2: peak of the British lockdowns. But another issue facing the

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Speaker 2: British government was that low confidence in the pound made

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Speaker 2: investors less willing to lend money to the government, which

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Speaker 2: put the government in the sticky situation. Since the mini

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Speaker 2: budget was reliant on the government taking on a fair

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Speaker 2: bit of debt, which they hoped would reduce people's energy

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Speaker 2: bills in the coming winter. And reducing energy bills was

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Speaker 2: one of Liz Trust's signature policies when she was campaigning

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Speaker 2: to be the leader of the Conservatives. It was kind

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Speaker 2: of the thing that she would lead the televised debates with.

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Speaker 2: So if she couldn't deliver on that, it did raise

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Speaker 2: questions about what she could deliver on.

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Speaker 3: We'll be back in just a moment, but first a

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Speaker 3: message from our sponsor. That's a good point to mention

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Speaker 3: here actually is that Liz Trust is in the job

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Speaker 3: as PM because she was elected by her fellow Conservatives,

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Speaker 3: the Tories, who have been in power since twenty ten.

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Speaker 3: What have a party member said about her in the

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Speaker 3: last couple of weeks.

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Speaker 2: Well, unsurprisingly, and we see this pattern in political parties

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Speaker 2: around the world. When there starts to be a bit

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Speaker 2: of fragility around the leader, many of them are very unhappy.

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Speaker 2: They're becoming more vocal in calling for her removal, and

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Speaker 2: several have sent anonymous messages to journalists saying she's finished.

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Speaker 2: Five of her own MPs have called for her to resign.

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Speaker 2: There's one Andrew Bridgen. He said we cannot carry on

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Speaker 2: like this. Our country, It's people and our party deserve better.

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Speaker 2: And there was this tweet from the political editor of

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Speaker 2: The Guardian after a brief press conference where Truss only

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Speaker 2: answered four questions, which reads quote Tory MP's already texting

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Speaker 2: to say they think Liz Trust's press conference has actually

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Speaker 2: made things worse.

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Speaker 3: Right, So what are their options if they want to

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Speaker 3: remove her? I mean it would be a very short

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Speaker 3: lived prime ministership.

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Speaker 2: I remember when we had this conversation a couple of

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Speaker 2: months ago about Boris Johnson, when now having it about

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Speaker 2: another UK PM, they're almost catching up with us. The

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Speaker 2: process for replacing Trusts is not straightforward. She became PM

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Speaker 2: only last month through a process involving a vote of

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Speaker 2: MPs which she lost and a vote of ordinary party

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Speaker 2: members which she won.

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Speaker 3: And I'll just jump in there just to remind everyone.

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Speaker 3: So that's because Boris Johnson resigned, and so it wasn't

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Speaker 3: a normal election where normal people like you and I

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Speaker 3: would go to vote if we were British, but instead

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Speaker 3: it was the party that was really voting her in.

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Speaker 2: Right exactly. And there's a whole set of rules that

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Speaker 2: govern that procedure, and party rules prevent a new leader

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Speaker 2: from facing a challenge in their first twelve months, so

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Speaker 2: Trust can't be forcibly removed unless these rules change. Now.

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Speaker 2: Even if she did resign, the party would be reluctant

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Speaker 2: to hold another leadership contest, with another round of debates

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Speaker 2: and another round of the party looking fragile from the outside.

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Speaker 2: Some Conservatives have suggested the best way to replace Trust

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Speaker 2: would be to demand her resignation and replace her with

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Speaker 2: what they're calling a consensus candidate who has brought internal support,

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Speaker 2: and that means they would avoid a leadership vote altogether.

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Speaker 3: All right, And I mean we've been speaking and it

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Speaker 3: seems like there's no general agreement on who this could be.

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Speaker 3: There some names being thrown around, but certainly it seems

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Speaker 3: too premature to name them. Can't they just be a

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Speaker 3: general election in the UK instead?

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Speaker 2: Well it's not that easy, although many outside the party

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Speaker 2: are calling for exactly that instead of letting Conservatives elect

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Speaker 2: another PM. As a reminder, since the Conservatives forms government

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Speaker 2: in twenty ten, the UK have had David Cameron, Theresa May,

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Speaker 2: Boris Johnson and Liz Trust and now there could be

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Speaker 2: another leader before the next scheduled election in twenty twenty five. Now,

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Speaker 2: the only ways it can happen before twenty twenty five

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Speaker 2: are if the PM herself calls one or if Parliament

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Speaker 2: votes it has no confidence in the government. Both of

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Speaker 2: these options require the participation of Conservatives, which is unlikely.

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Speaker 2: The latest polls suggest that Conservatives could lose hundreds of

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Speaker 2: seats if an election was called today.

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Speaker 3: Right, So not a lot of good future options there

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Speaker 3: for the Conservatives. What are they doing in the short term?

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Speaker 2: So Quasi Qua Teng was replaced as Chancellor by Jeremy

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Speaker 2: Hunt on the fourteenth of October, and Hunt very quickly

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Speaker 2: acts pretty much all of Trust's and Quateng's mini budget.

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Speaker 2: Now that included cutting the energy price freeze that was

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Speaker 2: a key part of her economic policies. Trust has given

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Speaker 2: a TV interview where she apologized for the mistakes she's

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Speaker 2: made and awkwardly laughed when asked if she would quote

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Speaker 2: definitely lead the Conservatives to the next election in twenty

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Speaker 2: twenty five.

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Speaker 3: It's not sounding good for trus but we will definitely

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Speaker 3: keep an eye on this story and keep you up

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Speaker 3: to date with what is happening. Thank you for joining

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Speaker 3: us on the Daily OS. If you learned something from

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Speaker 3: today's episode, don't forget to hit subscribes so there's a

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Speaker 3: TDA episode waiting for you every weekday morning. Have a

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Speaker 3: great day and we'll see you again tomorrow