'The worst Prime Minister in living memory' - reaction as Liz Truss confirms she will quit Downing Street, with new boss in Number 10 by Halloween

In a short statement outside Number 10, the former Foreign Secretary said she had already informed King Charles III of her decision to stand down.

Arrangements for her succession had already been discussed with senior figures in the Conservative Party, with a leadership election expected to be completed within the next week.

According to Sir Graham Brady, the chairman of the 1922 Committee of backbench Tory MPs, a new prime minister will be in place by Halloween.

The move brings the curtain down on a brief tenure which saw markets spooked by her economic plans within weeks of replacing her predecessor Boris Johnson.

"She has probably given her most honest and realistic speech in resigning,” said Antony Mullen, leader of Sunderland City Council’s Conservative opposition group.

"It’s the right thing to do, she clearly had no control and no authority left.”

He added the party should now “very quickly get Penny Mordaunt in” as leader and avoid another drawn out leadership contest.

Following the outgoing Prime Minister’s announcement, Ms Mordaunt said she would “keep calm and carry on” when asked about her own leadership ambitions.

Labour city council leader Graeme Miller described Ms Truss as “the worst Prime Minister in living memory”.

"It took longer to get her elected than she has been Prime Minister," he said.

"Now the Conservative Party have to do their duty and put this to a General Election.

"We can't have three Prime Ministers and four Chancellors in four months effectively, it is disgracefully undemocratic. I want to see what the Conservative Party does to address that democratic deficit."

This sentiment was echoed by Wearside’s three MPs.

Washington and Sunderland West MP Sharon Hodgson said: "It's time for real leadership - we need a general election, now."

Houghton and Sunderland South MP Bridget Phillipson, the shadow education secretary, said: "The Conservatives have no mandate to govern – they have set record-high inflation, trashed our institutions and created a cost-of-living crisis that is punishing families in our community.

"The British public deserve a proper say on our country's future.”

Sunderland Central MP Julie Elliott added Ms Truss’s legacy would be “economic catastrophe”.

She added: “Liz Truss’ resignation is yet another example of the chaos of the Tory party.

"No matter who fills the Tory leadership vacuum next, this chaos will clearly not end until we get a Labour government.”

Niall Hodson, leader of the Sunderland’s Liberal Democrat opposition group, said: “I am sorry that she [Ms Truss] was ever in the Liberal Democrats."

He added: "Normal people are still thinking about how they are going to pay their fuel bills and mortgages,

"The things we are dealing with as councillors are people worried about turning on their heating, about paying their council tax and fuel bills,

"It is all just so removed from concerns on the street.

"I am a bit sick of it - I really don't have any time for them”