LONDON - Ms Liz Truss quit as British prime minister after a brief and chaotic tenure that saw her announce a massive package of tax cuts before unwinding most of it in the face of a market rout.

Mr Rishi Sunak and Ms Penny Mordaunt, two contenders in Britain’s previous leadership contest this year, are believed to be in the running to become the nation’s next prime minister, Sky News reported.

Separately, The Guardian’s political editor reported former minister Michael Gove was “ruled out” for the leadership.

Before she announced her resignation on Thursday, bets on her departure had continued.

Mr Sunak, who ran against Ms Truss in the Conservative leadership election this summer, remains Sky Bet’s favourite, with the bookmaker paying out £7 (S$11) for every £4 bet on the former chancellor.

New Chancellor Jeremy Hunt has climbed the list of favourites after less than a week in the role, with bets on both Mr Hunt and Ms Mordaunt, who is Leader of the House of Commons, at 4/1.

But Mr Hunt has said he is not standing. He reiterated his position earlier in the week, when he told Sky News he did not aspire to succeed Ms Truss.

“I rule it out, Mrs Hunt rules it out, three Hunt children rule it out,” he said.

Mr Keir Starmer has slipped down the list of likely candidates, suggesting bookies favour an internal Tory replacement rather than a general election, with odds on the Labour leader down to 8/1 from 3/1 at Sky Bet.

The bookmaker also sees speculation of former prime ministers Boris Johnson and Theresa May returning to Number 10. They place higher in the odds than all current Cabinet members, apart from Ms Mordaunt and Defence Secretary Ben Wallace.

Odds from betting on politics should be taken with a large pinch of salt. In market terms, they reflect the views of retail investors, rather than professional analysts. REUTERS, BLOOMBERG