Liz Truss has made close ally Kwasi Kwarteng her new chancellor as the Prime Minister picks her top team.
Therese Coffey has also been appointed health secretary and deputy Prime Minister, while James Cleverly is now foreign secretary and Suella Braverman is home secretary.
Jacob Rees-Mogg has also been given a large promotion to business secretary and will help spearhead Truss’ energy support plan alongside Kwarteng.
Truss is expected to announce a £100bn package to freeze household bills this week.
Kwarteng said it was the “honour of a lifetime” to be made chancellor.
“This evening, we’ve been finalising our package of urgent support to help with energy bills, with an announcement this week,” he said.
Wendy Morton has been made Truss’ chief whip, Ben Wallace remains as defence secretary and Nadhim Zahawi has been demoted from chancellor to Cabinet Office minister.
Penny Mordaunt, who came third in the Tory leadership contest, is the new Leader of the House of Commons and Brandon Lewis is now justice secretary.
A host of Rishi Sunak supporters have either left or been sacked from cabinet, including Steve Barclay and Dominic Raab, as Truss looks to appoint her loyalists to top positions.
Truss is expected to ignore pleas from some senior Tories to appoint high-profile Sunak supporters to major government roles and instead installed a cabinet almost entirely comprised of staunch loyalists.
Earlier today Liz Truss vowed that Britain can “ride out the storm” it is facing during her first speech outside Number 10 Downing Street.
The former foreign secretary was greeted by warm applause as she arrived at Number 10 for the first time as Prime Minister, and said she would outline her energy support package later this week.
Truss blamed Vladimir Putin for the energy crisis which is set to plunge millions into fuel poverty this winter, with household bills set to almost double without any intervention.
The Prime Minister said she would be “hands-on”, in wake of reports she has committed to a £40bn package to support businesses and a £100bn package to support households.
Amid a possible impending recession and economic gloom, she said: “As strong as the storm may be, I know that the British people are stronger. We have huge reserves of talents of energy and determination I am confident that together we can ride out the storm..
She added: “I will cut taxes to reward hard work and boost business led growth and investments. I will drive reform in my mission to get the United Kingdom working building and growing.
“We will transform Britain into an aspiration nation with high paying jobs, safe streets, and where everyone everywhere has the opportunities they deserve.