EXPLAINER: What caused UK's economic crisis and what's next?

LONDON (AP) — Prime Minister Liz Truss took office last month promising to reenergize the British economy and put the nation on a path to “long-term success.” Instead, her tenure so far has been marred by turmoil as mortgage rates soared, the pound fell to record lows and chaos in bond markets threatened the country’s financial stability.

While Truss came to power at a difficult time — facing a cost-of-living crisis, the war in Ukraine and the lingering effects of the COVID-19 pandemic — her decision to announce 105 billion pounds ($116 billion) of tax cuts and spending increases without providing details on how she would pay for it spooked markets concerned about soaring public debt.

That undermined confidence in the government’s ability to pay its bills and raised questions about the economic credentials of a new prime minister who took office after a deeply divisive contest for leadership of the governing Conservative Party.

Here's a look at what triggered the turmoil on British financial markets:

HOW DID LIZ TRUSS BECOME PRIME MINISTER?

Truss’ predecessor, Boris Johnson, was forced out of office after a series of scandals culminated with more than 50 Cabinet ministers and lower-level officials resigning from his government. That triggered an internal contest to lead the Conservative Party.

The election divided the Conservatives. Truss was the second choice of party lawmakers, behind former Treasury chief Rishi Sunak, but she won 57% of votes among party members, making her party leader and prime minister.

While Truss inherited the large majority in Parliament that the Conservatives won in 2019, she didn’t win her own mandate by leading the party in a general election.

WHAT IS THE GOVERNMENT'S ECONOMIC PLAN?

Treasury chief Kwasi Kwarteng on Sept. 23 announced...