UK's beleaguered Prime Minister Liz Truss, facing opposition from within the party over her handling of the economy and exit of key ministers, resigned on Thursday, making way for her successor as Rishi Sunak emerges the favourite now.

Addressing reporters outside 10 Downing Street, Truss, noting that she came into office at a time of "great economic and international instability", said: "I recognise... given the situation I cannot deliver the mandate on which I was elected by the Conservative Party."

Liz Truss
Liz TrussIANS

Truss had succeeded Boris Johnson in early September, after emerging triumphant in the Conservative Party leadership contest over former Chancellor of the Exchequer, Rishi Sunak.

Home Secretary's exit

Truss's resignatin followed Indian-origin Suella Braverman's resignation from the post of UK Home Secretary amid political and economic turmoil in Britain, marking the second departure of a senior minister in in less than a week. Kwasi Kwarteng was removed as the finance minister last week, and was replaced by Jeremy Hunt.

According to the Daily Mail, "Truss sacked Braverman after a 90-minute shouting match..." Braverman had launched a scathing attack on Truss, accusing her of breaking key pledges and wobbling over manifesto commitments such as reduced migration, Daily Mail reported.

"It is absolutely not a row about immigration. I am clear that Suella would be continuing if she had not made the mistake. I have spoken to Suella in the course of the day, she is in good spirits...

"She is a friend of Truss and wants her to succeed," Baker told First Edition.

Rishi Sunak
Rishi SunakIANS

Earlier this month, the 42 year-old with Indian roots sparked an immigration row saying that Indians comprise the "largest group of people who overstay" their visas in the UK, thus putting the Free Trade Agreement between the two nations in jeopardy.

Sunak emerges favourite now

Meanwhile, signalling that the UK needs a change of direction, Baker also said that former British Chancellor of Indian-origin Rishi Sunak would make a good Prime Minister.

"I feel the country needs a change of direction and Rishi did not want to offer that. Rishi would be a good Prime Minister... We have a number of people in the party who could be good Prime ministers," Baker told ITV's Peston.

Barely two months after losing to Liz Truss in the race for UK Prime Minister, Sunak has once again been emerging as the favourite to replace her with 100 Tory MPs considering a no-confidence motion against her.

A YouGov poll of Tory members found that 55 percent would now vote for 42-year-old Sunak if they were able to vote again, while just 25 per cent would vote for Truss.

Rishi Sunak

According to a Bloomberg report, Conservative MPs are utterly divided over who should take over.

"Rebellious Conservative MPs are destroying the capacity for the party to govern," Baker told ITV Peston and instead, asked the MPs to do it privately.

Sunak's warnings about Truss's economic plans have been largely borne out, which gives him credibility with markets.

"Yet he has large numbers of enemies in the Tory party. There are about 100 MPs on the ideological right of the party -- including ardent Brexiteers and supporters of Johnson -- who are determined to prevent a Sunak premiership," the Bloomberg reported.

(With inputs from IANS)