This marked the end of her tenure at 10 Downing Street in London after just 45 days in the job during which she trudged from one crisis to another.
In the process she has earned the dubious distinction of being the shortest serving British prime minister.
Here are some of the key reasons that may have led to her downfall:
Unplanned massive package of tax cuts
The central mistake of Truss’s term was a massive £45 billion ($50 billion) package of tax cuts, amid the strongest inflation in four decades that she unveiled without any independent analysis of how it would be funded. The markets reacted violently to the biggest tax giveaway in half a century amid fears it would hamper the battle against inflation and destabilize the public finances.
Pound’s tumble to all-time low
Her plans for vast unfunded tax cuts crashed the pound and British bonds. Pound’s tumble to an all-time low against the dollar and the imminent threat of a rout in gilts forced the Bank of England to intervene to prevent a key part of the pensions industry from collapsing.
Timeline: Liz Truss resigns as UK PM after 45 days
<p>September 5: Truss is elected Conservative Party leader by the party’s membership, winning 57% of the vote to succeed Boris Johnson. (AP photo)</p>
Chaotic Parliament vote
A parliament vote on banning fracking descended into chaos as a desperate prime minister tried to corral her angry MPs into the voting lobbies in the House of Commons for a make-or-break ballot that she had no reason to take on. There were displays of anger in Parliament, with party whips accused of using heavy-handed tactics to gain votes. Several party MPs rebelled.
Loyalists for key jobs
Truss appointed loyalists to key jobs rather than reaching out to her opponents. And when, at the last, she tried to stamp her authority on the party, she only provoked its anger. She installed like-minded Kwasi Kwarteng as chancellor of the exchequer and together they unveiled a costly scheme to cap household energy bills, but did not plan any measures to raise funds.
Truss lost two key ministers in a short span of 45 days. First, she was forced to sack her finance minister and closest political ally, Kwasi Kwarteng, over a botched economic programme. Then came Suella Braverman‘s explosive exit as home secretary from Truss Cabinet amid a scathing parting attack on her boss. Experts believe Braverman’s exit was over serious differences with Truss on the country’s immigration policy.
(With inputs from agencies)
Watch Elected in 60 days, gone in 45: Liz Truss becomes shortest serving UK PM