Liz Truss is the UK’s new Prime Minister after being asked to form government by the Queen in Balmoral this afternoon.
Truss is now on her way back to London to deliver her maiden speech as Prime Minister outside Number 10.
A Buckingham Palace spokesperson said: “The Queen received in audience The Right Honourable Elizabeth Truss MP today and requested her to form a new administration.
“Ms Truss accepted Her Majesty’s offer and kissed hands upon her appointment as Prime Minister and First Lord of the Treasury.”
The Prime Minister will appoint Tory MPs to her cabinet this evening, with Kwasi Kwarteng a certainty to be chosen as chancellor.
It is also expected Therese Coffey will be deputy PM and health secretary, James Cleverly will be foreign secretary and Suella Braverman will be home secretary.
Ben Wallace, Kemi Badenoch, Jacob Rees-Mogg and Anne-Marie Trevelyan are also expected to be appointed to major cabinet roles.
Her opponent in the Tory leadership race Rishi Sunak has indicated he will not accept a cabinet post if he is offered one by Truss.
Former Prime Minister Boris Johnson said in his farewell speech today that “Liz Truss and this government will do everything we can to get everybody through the energy crisis”.
“It is time for politics to be over, to get behind Liz Truss and deliver for the people of this country,” he said.
Johnson also fired a parting shot at Tory MPs, after they forced him out of office earlier this summer.
“The baton will be handed over in what has unexpectedly turned out to be a relay race. They changed the rules halfway through, but never mind that now,” he said.
Truss is expected to announce a £100bn+ support package for households facing soaring energy bills this week.
Bloomberg also reported today that she will spend around £40bn to cap energy prices for businesses.
The incoming Prime Minister is mulling over two options – setting a fixed energy price for businesses or a flat percentage discount that energy suppliers must offer to companies.
The package will be in place for the start of next month, which is when energy contracts for many businesses are ending, and the terms will be revisited on a rolling basis.