The United Kingdom has a new leader after Boris Johnson resigned.
The U.K.'s foreign minister won the leadership race with the result announced on Monday.
More than half of the members of the Conservative Party voted for the candidate they wanted.
Sunak got 42% of the vote, while Truss took around 70% of the vote.
With a cost-of-living crisis looming in the U.K., as elsewhere in Europe as inflation continues to rise, Truss will have to hit the ground running to deal with the immediate squeeze on Britons' pockets.
Political commentators and economists have been poring over Truss' political history as well as her economic pledges on the campaign trail for a better idea on where she might take a country that is facing a potential fall in living standards.
CNBC has a detailed guide to the new prime minister of the U.K.
While she's been elected the new leader of the ruling right-leaning Conservatives, she can't be said to have been born and bred into the Conservatives.
Her parents were a mathematics professor and a nurse and she was born into a left-wing household.
She remembers her mother taking her on nuclear marches when they were run by the Campaign for Nuclear Disarmament. Truss was a member of the Liberal Democrats when she advocated the abolition of the monarchy as a young adult.
After finishing her studies for a degree in philosophy, politics and economics at Oxford, she became a member of the Conservative Party.
She tried to be elected as a Conservative Member of Parliament twice, but failed both times.
In 2010, however, she finally succeeded in becoming the MP for South West Norfolk, which remains her constituency, although faced another hurdle when local party activists tried to have her deselected as a candidate as she had not declared an affair in 2006 She and her husband have two girls.
In the Prime Minister's government of a decade ago, Truss rose to political prominence, serving as parliamentary under-secretary of state for childcare and education in 2012 and then environment secretary in 2015.
A speech she gave at the Conservative Party conference in which she made what was seen as an exaggerated plea for British cheese was mocked. It's that. It's. It's a disgrace.
After campaigning for "Remain" in the EU membership referendum, she later said she regretted her stance and supported the exit of the EU. She has held a number of positions in Boris Johnson's government.
It has been speculated that Truss could follow in the footsteps of Reagan and pursue policies similar to the president's. Reaganomics was the economic policies put in place by former U.S. President Ronald Reagan in the 1980's.
Critics say such policies increase income disparity and social inequality while increasing public debt because they promote a "trickle-down" effect where lower taxes on businesses encourage investment and growth.
The U.K. could learn from conservative policies in the U.S. that weakened regulation.
The Heritage Foundation and American Enterprise Institute couldn't confirm to CNBC that they had met. The former denied to CNBC that it had a record of any public appearance or private meeting with Truss, while the latter couldn't confirm or deny such a meeting had taken place.
The alleged meetings took place at that time. Liz was in charge of the Treasury. The U.K. Treasury confirmed to CNBC that in September of last year, Truss attended several meetings in the U.S., meeting with the American Legislative Exchange Council to discuss "state level economics."
During her time at the Treasury, she argued against government bureaucracy and state interventions in people's lives, as well as against higher government spending that she said would mean higher taxes.
NATO Secretary General Jens Stoltenberg welcomes British Foreign Secretary Liz Truss before their bilateral meeting in Brussels, Belgium, January 24, 2022.It appears that Truss favors policies similar to those of the Reagan era. On the campaign trail, she promised to reverse a rise in the rate of National Insurance tax, which funds social security spending in the U.K.
She believes that the U.K. should issue more debt and extend the maturity of its public debt.
In order to appear business-friendly, she has promised to scrap a planned rise in corporation tax from 19% to 25% that was set to come into force in 2023.
In an interview with the BBC on Sunday, she said she would announce a plan to deal with the U.K.'s rising energy costs within a week of taking office. She had said a few weeks ago that she would introduce an emergency budget in the first few weeks of office to make sure support was on its way.
She has already announced that she would temporarily suspend green levies on energy bills but experts say she will have to dig far deeper to tackle a looming crisis with British energy bills expected to hit over $4,000 a year per household in 2023
Economists say it's easy to make promises on the campaign trail, so it's not clear how far she will be able to realize her economic pledges. The future finance minister is the one who will hold the purse strings, according to Kallum.
The new leader of the U.K. is facing a challenging economic backdrop, according to a note published before the leadership result.
He said that the U.K. is tipped into a mild recession due to high inflation and rising interest rates. The Bank of England's mandate will be reviewed.
It's not clear what direction the U.K.'s relationship with the EU will take.
Her former "Remainer" status has come to haunt her and she has since talked tough on the EU, keen to appeal to a large pro-divorce contingent in the parliamentary Conservative Party.
The EU was annoyed by the "Northern Ireland Protocol Bill" that was put forward by the U.K. minister.
According to a report, the bloc has said it will not negotiate over Northern Ireland while the bill is being debated.
Truss had previously warned the U.K. would have "no choice but to act" if EU lawmakers do not show the "requisite flexibility" over the protocol.A return to stable and predictable politics is the most important thing for the British economy right now.
We think that the U.K. public is tired of it all. He said that the risk of a trade war with the EU could be avoided if the U.K. didn't renege on its commitments.
He said that the new leader of the U.K. would probably want to pursue a calmer approach to EU matters than the populist Johnson.
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