Live coverage from the Conservative leadership ballot, and the announcing the new Conservative Leader and Prime Minister. The two candidates are Rishi Sunak and Liz Truss.
Graham Brady, the returning electoral officer for the 1922 Committee, has just announced that Liz Truss MP is the new U.K. Prime Minister and leader of the Conservative Party, with 81,000 votes to Rishi Sunak’s just over 60,000.
So what are the challenges that Liz Truss faces as PM?
Both Liz Truss, as well as Rishi Sunak pledged help for families bracing for a £3,549 energy bill from October, at a time when inflation is already above 10% and some economists say it could hit 22%.
The Resolution Foundation warns families will see their spending power cut by £3,000 by the end of next year unless the new government acts.
The current Chancellor; Nadhim Zahawi, has confirmed that targeted reductions in VAT and business rates are being prepared by Treasury officials to help the retail and hospitality sectors through the winter.
While ministers have successfully cut Russian gas imports to zero, the price of domestic and imported foodstuffs has rocketed.
The UK government’s borrowing cost is likely to be nearer £110bn than previously thought, but investors will be willing to lend.
The new chancellor will enter the Treasury with alarm bells ringing for economic growth. A recession is expected to drive up unemployment as companies come under pressure, reversing the post-lockdown trend for chronic staff shortages.