Chalmers urges UK stability after Truss

Ms Truss resigned after just 45 days in the role after taking over from Boris Johnson, becoming the shortest-serving prime minister in British history.

A Conservative Party leadership contest will be held in the next week to elect a new leader, with Ms Truss acting as interim leader in the meantime.

Dr Chalmers said Australia's relationship with the UK would remain strong despite the political chaos at Downing Street.

However, he said allies of the UK would also benefit from stable leadership.

"It's in everybody's interests, not least of which the UK, is that there is a semblance of order and stability in the UK," he told reporters in Canberra on Friday.

"It's a sign of the times, frankly, in the UK, that I've only been the treasurer here for the five months and I've already had four UK counterparts."

Ms Truss's resignation as prime minister followed from economic market turmoil after releasing a mini budget which implemented unfunded tax cuts, causing the pound to plummet.

Dr Chalmers said there were lessons from the UK ahead of the federal budget being released on Tuesday.

"I don't think it's any secret when you get your monetary policy and your fiscal policy so substantially out of whack that the market judges you for it," he said.

"The lesson for us is we do what's right and responsible, solid, sensible, suited to the times because the stakes are relatively high at a time when the global economy is a pretty uncertain place."

Finance Minister Katy Gallagher said whoever replaced Ms Truss as prime minister would still uphold strong ties with Australia.

"People to people, government to government, we're doing a lot of work in defence, in trade, in a whole range of areas," she told the Nine Network.

"That continues regardless of some of this political instability."

Opposition Leader Peter Dutton said the resignation of Ms Truss after little more than 40 days as prime minister was sad for her personally.

"She is a good person, made a mistake and paid a huge price," he told Nine's Today show.

"We need stability in the UK, we need our partners to be strong, in Europe, we need strong leadership."

With the resignation of Ms Truss, the UK will have its fifth prime minister in six years and its third this year alone.

Deputy Prime Minister Richard Marles said while there had been changes at Downing Street in past weeks, Australia's close ties with the UK would continue.

"(The resignation) doesn't, in my view, have an impact on our relationship with Britain and our ability to engage on the really critical issues which we have with Britain," he told ABC Radio on Friday.

"We are doing a lot with the UK but we're able to do that notwithstanding the politics which has been unfolding in the UK over the last few months."

Deputy Opposition Leader Sussan Ley said the sudden resignation emphasised the tough business of politics.

"She is a woman who stepped up in politics to make a party and country a better place," she said.

"She stepped down today and it is a tough time for the UK. They have lost the Queen. You always need a good government and a good opposition to have good overall outcomes."

Australian Associated Press