Liz Truss has resigned as Prime Minister as she calls for a fresh leadership race. 

She is set to become the shortest-serving Prime Minister in history following her resignation speech which she gave after just 44 days in office. 

Speaking from the lectern outside Downing Street, the Prime Minister said: "I recognise I cannot deliver the mandate on which I was elected by the Conservative Party.

"I am resigning as leader of the Conservative Party. There will be a leadership election to be completed within the next week.

Liz Truss announces her resignation as Prime Minister

Liz Truss resigns as Prime Minister

"I will remain as Prime Minister until a successor has been chosen."

The announcement comes after she met with the leader of the 1922 Committee, Sir Graham Brady, in No 10 earlier today.

Her resignation comes after weeks of chaos following a disastrous mini-budget which plunged the economy into turmoil.

The current shortest premiership is that of Tory statesman George Canning, who spent 118 full days as PM in 1827 before dying in office from ill health.

READ MORE: Keir Starmer calls for general election as Liz Truss resigns as Prime Minister

READ MORE: What is the 1922 committee and what powers does it hold in the Tory party? 

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When will the next leadership election be? 

Liz Truss has called for a new leadership race which is set to happen within a week. 

The 1922 committee chairperson has said that he expects the new leader to be in place by Friday, October 28.

He told reporters: “I have spoken to the party chairman Jake Berry and he has confirmed that it will be possible to conduct a ballot and conclude a leadership election by Friday the 28th of October.

“So we should have a new leader in place before the fiscal statement which will take place on the 31st.”

Any candidates are yet to announce their intentions to run.

However, the new chancellor Jeremy Hunt has dismissed speculation that he will run for the top job.

Former leadership candidates Rishi Sunak and Penny Mordaunt are among the leading contenders.

READ MORE: These are the favourites to become Prime Minister as Liz Truss resigns

READ MORE: Liz Truss resigns: Will there a general election?

Will the taxpayer pay for a Conservative leadership election?

The British public has seen a conservative leadership election very recently following the resignation of Boris Johnson in July.

His resignation sparked a lengthy leadership process of seven weeks and 16 hustings between the final two candidates until Truss was appointed on September 6. 

In the previous leadership race, the final two candidates needed to pay £150,000 each to fund the hustings around the country, the Express reported.

This staggering sum was in addition to their individual campaign costs, which were capped at £150,000 for the contest's duration.

Since previous leadership campaigns have been funded by party donors, it is expected that the new race will follow the same format.

Read more about campaign spending and electoral law via the Electoral Commission website.