Ms. Truss beat her rival, former finance minister Rishi Sunak, by 81,326 votes to 60,399, after a summer-long internal contest sparked by Boris Johnson's resignation in July.
She becomes UK's third female prime minister following Theresa May and Margaret Thatcher.
The contest for the seat begun in July after Johnson announced his departure following a series of scandals and resignations from his government.
The 47 year old campaigned on a promise to slash taxes and prioritise economic growth, with Britain tipped to enter recession later this year promising to ''within a month present a full plan for how we are going to reduce taxes" and "get the British economy going".
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