Ione Wells
Political correspondent

Tory MPs have a habit of banging fists on tables in this parliamentary room where they meet regularly as a signal of approval.

Now, the volume of said "bangs" is no scientific measure.

But I sit in and around a lot of these meetings, and it’s fair to say that Rishi Sunak is currently getting an incredibly loud reception from his backbenchers as he addresses them.

Standing outside the room there are audible cheers, very loud banging on the desks, and some even banging on the doors.

The former environment secretary George Eustice said he told MPs there was a big challenge ahead but that they were “in it together.”

Image source, Getty Images

Lib Dem leader Sir Ed Davey says the Tories are installing "another out-of-touch prime minister".

In a statement, Davey says the Conservative Party has "trashed the British economy", and repeats his call for a general election.

He says: "Now Conservative MPs have installed another out-of-touch prime minister with no plan to repair the damage and without giving the British people a say."

Davey adds that Rishi Sunak has shown he "doesn't understand the challenges facing struggling families and pensioners".

He predicts "more of the same, as Conservative MPs plot and squabble amongst themselves while completely ignoring the huge challenges facing the country".

"The only way to end the chaos is a general election now," he says.

There's been a lot to take in over the last hour, so here's a quick recap:

• Rishi Sunak will be the UK's next prime minister after Penny Mordaunt dropped out of the Tory leadership race just moments before the deadline for nominations to be received
• "Rishi has my full support," Mordaunt said in her withdrawal statement
• Sunak - who is set become the UK’s first British Asian prime minister - is now addressing MPs
• It has not yet been confirmed when he will formally become prime minister

Ione Wells
Political correspondent

Rishi Sunak has just gone in to a room of backbench Tory MPs, accompanied by some of his loyal backers.

He is receiving a rapturous round of applause and banging of fists on desks by Tory MPs in the room.

Remember, a lot of them wanted him to be prime minister earlier this summer too, after he came top of the MPs' rounds of voting in the first leadership race. That was before he lost out to Liz Truss in the party members' vote.

Scottish Conservatives leader Douglas Ross has congratulated Rishi Sunak on becoming the new Conservative party leader and prime minister, stating that he is "uniquely well equipped for the task".

Ross says: "Our country - like others around the world - faces tough economic challenges.

"Against that backdrop, it's important that we have someone at the helm with a proven track record in running the nation's finances, who can provide economic stability and reassurance to the markets."

He said recent weeks had been "difficult and unsettling" for the party and the country, and that all the focus must now be on "bringing the nation together and navigating through the tough economic conditions we face."

Reacting to the news that Rishi Sunak will be the UK's next prime minister, Foreign Secretary James Cleverly tells the BBC it's a "very positive move".

Cleverly - who had originally backed former prime minister Boris Johnson to be leader again yesterday, before swapping to Sunak after Johnson pulled out - says Sunak is the most experienced candidate to lead the country, adding that he's a "smart and talented guy".

He says after the "difficult" and "brutal" last few months, the government can now focus on the British people, delivering good governance, and supporting the UK's international friends, such as Ukraine.

They "should be the only things that we think about," he says.

Another week's delay to the Tory leadership contest would have been "counterproductive", he adds.

Ione Wells
Political correspondent

Penny Mordaunt walks into the 1922 committee of backbench MPs, which Rishi Sunak is about to address, saying she is “good” and “going to support the new PM.”

She entered the room to a rapturous banging of fists on desks — which in Tory MP tradition is a round of applause.

Here's the moment Sir Graham Brady, chairman of the 1922 Committee, confirmed Rishi Sunak would be the next leader of the Conservative Party, and the next prime minister.

Sunak was the only candidate after Penny Mordaunt pulled out just ahead of the 14:00 deadline for nominations.

The pound and British government bond prices rose slightly on news of Penny Mordaunt's withdrawal - and therefore confirmation Rishi Sunak would be the next prime minister.

Against the dollar, the pound rose slightly by 0.15%

Nick Eardley
Chief political correspondent

I’d expect Rishi Sunak to formally become prime minister tomorrow.

By the time logistics are sorted it’s unlikely to happen today.

Chris Mason
Political editor

What an incredible moment.

Literally at the last minute, as we were approaching 14:00 - the point where the window was about to slam shut to any Conservative wannabe to assemble 100 nominations to stand for the leadership - there was confirmation from Penny Mordaunt.

She said she had listened to those inside her party, including those who had been supporting her, and would withdraw from the contest in the interests of certainty and stability.

Rishi Sunak was the only candidate to have cleared the threshold and wanted to continue.

There will now be a conversation about the choreography - something we’re becoming rather familiar with this autumn.

September’s loser has become October's winner. Rishi Sunak is becoming prime minister.

Here is Penny Mordaunt's full statement:

"Our Party is our membership. Whether we are elected representatives, activists, fundraisers or supporters. We all have a stake in who our leader is.

"These are unprecedented times. Despite the compressed timetable for the leadership contest it is clear that colleagues feel we need certainty today. They have taken this decision in good faith for the good of the country.

"Members should know that this proposition has been fairly and thoroughly tested by the agreed 1922 process.

"As a result, we have now chosen our next Prime Minister. This decision is an historic one and shows, once again, the diversity and talent of our party. Rishi has my full support.

"I am proud of the campaign we ran and grateful to all those, across all sides of our party, who gave me their backing. We all owe it to the country, to each other and to Rishi to unite and work together for the good of the nation. There is much work to be done."

Announcing there was just one person with the backing of 100 MPs, 1922 Committee chairman Sir Graham Brady confirmed the new Tory leader Rishi Sunak would address Conservative MPs at 14:30 BST.

We're hearing the address will be off-camera - but stick with us and we'll bring you the latest information as we get it.

Ione Wells
Political correspondent

There were loud cheers and bangs on the tables from Conservative MPs in the room here as Sir Graham Brady announced they only received one nomination for the new leader of the party.

He therefore declared Rishi Sunak to be the next party leader, and said Sunak would address Tory MPs shortly.

Ione Wells
Political correspondent

The room here in parliament where Sir Graham Brady had been about to announce the results of the nominations fell silent a few minutes ago as MPs and journalists heard the news that Penny Mordaunt had conceded.

Some Rishi Sunak supporters looked pleased, unsurprisingly.

He will now be the next Conservative party leader and therefore prime minister.

Nick Eardley
Chief political correspondent

Rishi Sunak will now take over as prime minister at an extremely difficult moment for the economy.

We haven’t heard any detailed plans from him since the leadership campaign over the summer.

There will now be calls for him to provide clarity about how he intends to balance the books.

There will also be political pressure for a general election. Opposition parties want one and some Conservative MPs have said they think one is necessary now too.

But seven weeks after losing the Conservative leadership election, Rishi Sunak will now be handed the key to Downing Street.

He has a bulging and daunting in-tray.

Seven weeks after losing to Liz Truss in this year’s first Tory leadership contest, Rishi Sunak has emerged victor in this one.

He is set become the UK’s first British Asian prime minister, and will take office as the UK faces enormous economic challenges.

Penny Mordaunt has pulled out of the contest to lead the Conservative Party.

We're minutes away now from nominations closing in the Tory leadership contest.

We know Rishi Sunak has the required backing of 100 MPs to get on the ballot. We'll find out if Penny Mordaunt has also cleared the bar.

We're about to hear from 1922 Committee chair Sir Graham Brady.

The One Nation group of Conservative MPs says it will “wholeheartedly support” the next prime minister, but has decided not to endorse a candidate.

Neither Rishi Sunak nor Penny Mordaunt have received the backing from the more moderate wing of the party ahead of the fast-approaching 14:00 deadline.

Damian Green, chair of the group, said , externalit will welcome "the prospect of a moderate, pragmatic Conservative government" which will "provide the stability the country needs".