Former PM Liz Truss Ousted From Seat, Caps Off Historic Conservative Losses

In the most totemic result of the general election, former Prime Minister Liz Truss has lost her South West Norfolk seat to the Labour party in a massive swing against the Conservatives. Truss lost by around 800 votes after securing a 26k vote majority in 2019. Truss' short-lived term in office in 2022 and the disastrous mini budget that saw a run on the pound and spiking gilt yields shattered the Conservatives' reputation for economic prudence and was seen as a major factor behind the party's collapse in support.

• It is now likely that, as MNI projected in the early hours (see 'UK: Farage Elected; Con Total Likely To Fall Short Of Exit Poll Projection' 0335BST) that the Conservatives will fall short of the 131 seats projected in the initial exit poll.
• The major takeaway from the election is the fracturing of the UK politicial system. Built on a largely two-party system that operated efficiently under first-past-the-post elections, the UK is now a five-party system where voter volatility will make maintaining political control beyond one parliament difficult.
• Nevertheless, Labour's significant majority should - at least in the short term - ensure political stability and a stable policy-making environment, something the UK economy has lacked in recent years.