UK can ride out economic storm, says new PM Liz Truss

The UK can "ride out the storm", Liz Truss has said as she became the country's 56th prime minister.

Giving her first speech as PM in Downing Street, Ms Truss said her three early priorities would be the economy, energy and the health service.

She said her mission was to ensure "prosperity for all" and that she was "determined to deliver".

She replaces Boris Johnson who used his leaving speech to urge Conservative MPs to get behind the new prime minister.

Speaking in front of the door to No 10 after an autumnal downpour nearly derailed the planned event, Ms Truss said she was "honoured" to take on the role "at a vital time for our country".

She said the country faced challenges caused by Russia's "appalling aggression" in Ukraine and the aftermath of the Covid pandemic.

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However, she said the British people had "the grit and determination" to "tackle those challenges".

"As strong as the storm may be, I know that the British people are stronger."

Setting out her initial aims, she said she would grow the economy through tax cuts and reform; take action to deal with energy bills and put the health service on "a firm footing".

Colleagues of the new prime minister gathered outside No 10 to hear Ms Truss's speech

Following the speech, Ms Truss began to appoint the senior ministers who will sit in her cabinet.

Kwasi Kwarteng has been named chancellor, Therese Coffey is the new health secretary and deputy PM, and James Cleverly becomes foreign secretary.

Suella Braverman, who ran against Ms Truss to be Conservative leader, replaces Priti Patel as home secretary.

In her first call as prime minister, Ms Truss spoke to Ukraine President Volodymyr Zelensky.

Downing Street said the two leaders discussed the need to "cut off funds fuelling Putin's war machine".

No 10 also said Ms Truss had a conversation with US President Joe Biden in which they "reflected on the enduring strength of the special relationship".

The first address of a newly installed prime minister does more to shape, to frame their premiership than any utterance before, or after.

Liz Truss's speech was her introduction to the country; a long standing minister well known at Westminster but much less so beyond.

Shorn of biography but heavy on belief, she sought to describe the country she now leads; how it is one of grit and courage, how she wants to be an "aspiration nation".

This was an attempt to meld the 2019 Conservative manifesto, which delivered the majority that allows her to govern, with the policy promises of this summer's campaign.

A determination to build hospitals, schools, road and broadband sounded like what Boris Johnson called "levelling up", without using that slogan.

Tax cuts and help with energy bills, the centrepiece of her pitch for the job.

Her challenges in office are both instant and colossal; her response to the energy bills crisis expected on Thursday.

Before that the appointment of ministers and Prime Minister's Questions.

The tough job of governing begins.

Ms Truss and her team will also be putting together their plan for helping people deal with rising energy bills.

An announcement is due on Thursday and is expected to include a freeze on energy bills worth billions of pounds.

Labour and the Liberal Democrats have previously called for a freeze on energy bills to be funded through a windfall tax on the profits of gas and oil companies.

Meanwhile in Scotland, First Minister Nicola Sturgeon has announced plans to freeze rent and rail fares in a bid to ease the cost of living crisis.

Ms Truss gave her speech after travelling back from Scotland where she was officially appointed by the Queen.

Plans to speak outside were put into jeopardy following a burst of heavy rainfall which forced waiting colleagues and journalists to take shelter, while the podium was covered in a black bin bag.

However, the rain subsided in time to allow Ms Truss to address the cameras from outside.

During her speech, Ms Truss paid tribute to her predecessor Mr Johnson saying he would be remembered as a "hugely consequential prime minister".

Earlier, Mr Johnson used his final speech as prime minister outside Downing Street to praise his colleagues in government.

He said they had "got Brexit done", delivered "the fastest vaccine rollout in Europe", and "organised prompt supply of weapons to Ukraine".

Mr Johnson - who was removed by his own MPs - also urged his Conservative colleagues to get behind Ms Truss saying: "It's time for politics to be over, folks."

Reflecting on his own future, Mr Johnson likened himself to "one of those booster rockets" that "has fulfilled its function".

The outgoing prime minister also compared himself to Cincinnatus, a Roman statesman and military leader, who returned to his farm having battled against an invasion. However, he later came out of retirement for a second term as leader of Rome.