Liz Truss tonight kicked off her Cabinet reshuffle just 40 minutes after entering Downing Street.
She sacked Rishi Sunak supporters Dominic Raab - who had branded her plans "electoral suicide" - Health Secretary Steve Barclay, Northern Ireland Secretary Shailesh Vara and Transport Secretary Grant Shapps, despite Mr Shapps' hopes he could cling to his job.
She packed the Cabinet with loyalists, naming her close ally and neighbour Kwasi Kwarteng as Chancellor, and friend Therese Coffey as Health Secretary and Deputy Prime Minister.
Hardline right-winger Suella Braverman - who wants to leave the European Convention on Human Rights - was named Home Secretary. James Cleverly named Foreign Secretary.
In a historic first, none of the four 'great offices of state' were occupied by a white man.
Veterans minister Johnny Mercer issued a seething letter saying he’d been “relieved of my duties” and was “disappointed”, adding bluntly: “Any Prime Minister is entitled to reward her supporters, and I accept her decision”. He said he had found the “burden” of carrying veterans’ expectations “extremely lonely and it has come at an enormous cost”, adding: “I will take some time out with my young family to consider my options”.
Andrew Stephenson, who remained neutral in the leadership race, was ousted as Tory chairman.
The new Cabinet is likely to meet tomorrow morning to sign off a multi-billion pound plan to freeze energy bills - slapped on the national debt.
Ms Truss will then face Keir Starmer in her first Commons outing as Prime Minister.
She jetted to Balmoral where at lunchtime the Queen asked her to form a government, becoming Britain’s 56th Prime Minister.
But she is under mounting pressure to announce a rescue plan to help desperate families battle the gathering economic storm.
Ms Truss is thought to have be planning to freeze bills at about £2,500 mark - some £500 higher than current levels but more than £1,000 below next month's cap.
Details were still being finalised tonight, but the plan is expected to be funded through general taxation or increased borrowing rather than paid for in future energy bills.
The new PM pledged action this week on energy bills and insisted the country will "ride out the storm" in her first speech in Downing Street - but failed to set out details.
She claimed she will "get Britain working again" - despite her party governing the country for the last 12 years - and get "spades in the ground" to cut the costs of energy in the long term.
And she promised to pursue three early priorities, including multi-billion pound tax cuts, tackling soaring energy bills and also putting the NHS on a "firm footing" amid a major backlog.
The reshuffle began at 5.46pm - 40 minutes after Ms Truss' motorcade swept into No10 - with the new PM sparing sacked ministers their blushes by sacking them in the privacy of her Commons office.
Grant Shapps warned he could be a thorn in the side of the new PM, tweeting: "It has been a privilege to serve as Transport Secretary; a job I loved.
"Now I look forward to being a strong, independent voice on the backbenches, developing policies that will further the Conservative cause and the interests of my constituents in Welwyn Hatfield."
Mr Barclay tweeted: "After 7 years in government I am returning to the backbenches. Thanks to all colleagues, both political & civil service, for their fantastic support. Wishing @trussliz & her ministerial team every success for the future."
Dominic Raab tweeted: "Thanks to the brilliant MoJ team for all their hard work over the last year. Good luck to the new PM and her team. I look forward to supporting the government from the backbenches."
This breaking news story is being updated.
