Penny for your thoughts? Mordaunt leaves No10 looking glum after FAILING to land a top job

A glum looking Penny Mordaunt stormed out of Downing Street last night after failing to land a top job in Rishi Sunak’s reshuffle despite speculation her recent rise to prominence would lead to a senior post.

A clip showed the Portsmouth North MP bolting out of the PM’s residence with a quickness in her step, walking stone-faced past the assembled media.

The Commons Leader appeared to pay the price for pushing the new PM to the wire in a close race to take power, which kept commentators on edge until the last moment.

As Sunak set out his new Cabinet designed to bring warring wings of the Tory Party together last night, Mordaunt kept her relatively junior current job of Commons Leader. The post is one which oversees government business in Parliament – neither a promotion nor demotion – which may disappoint the ambitious centrist.

Speculation has been rife that Mordaunt had been angling for a far more senior role, perhaps foreign secretary.

But her decision not to withdraw from the leadership race until two minutes before the deadline on Monday seems to have counted against her.

Leadership candidates had to get nominations from 100 MPs in order to run and her team were making big claims about hitting the target right up until the time she pulled out. 

There were jobs instead for Suella Braverman, who ran for the leadership in the summer but backed Mr Sunak this time, and James Cleverly, who wanted Boris Johnson to have a second term in office.

They return as Home and Foreign Secretary respectively. 

Those ejected to lick their wounds on the backbenches included Jacob Rees-Mogg, Kit Malthouse, Brandon Lewis, Robert Buckland and Ranil Jayawardena.

Only a few Trussites remain. Former deputy PM Therese Coffey has been shunted from Health to Environment Secretary while Chris Heaton-Harris remains at Northern Ireland.

The Portsmouth North MP appeared to pay the price for pushing the new PM to the wire in the race to take power

As he set out his new Cabinet designed to bring warring wings of the Tory Party back together Ms Mordant, seen meeting the Prime Minister yesterday, was confirmed in her relatively junior current job of Commons Leader

Speculation has been rife that she had been angling for a far more senior role, perhaps foreign secretary.

Justice Secretary Brandon Lewis (left) resigned from government, succeeded by Dominic Raab, while Jacob Rees-Mogg (right) has departed as Business Secretary, replaced by Grant Shapps

Kit Malthouse’s (left) role as Education Secretary has been filled in by Kemi Badenoch, and Robert Buckland (right) quit cabinet and was succeeded as Wales Secretary by David TC Davies

Mr Sunak dramatically rolled back the clock from the Truss era tonight – bringing back Michael Gove, reinstalling Ms Braverman and restoring Dominic Raab as his deputy.

Ms Braverman – who quit just six days ago over a ‘security breach’ was the big winner in a brutal overhaul, as the new PM rewarded her for supporting him over Boris Johnson in the Tory leadership battle.

Jeremy Hunt has been confirmed as Chancellor just a week before the crucial Halloween Budget, while Foreign Secretary James Cleverly and Defence Secretary Ben Wallace clung on amid a major clearout of 11 ministers.

But the changes were notable for the number of people returning to jobs they previously held – including Mr Gove at Levelling Up Secretary, Mr Raab as deputy PM and Justice Secretary, Steve Barclay at Health and Oliver Dowden running the Cabinet Office.

Penny Mordaunt has been snubbed for promotion despite her pitch for the leadership, remaining as Commons Leader, while tips of Kemi Badenoch getting a bigger job proved wide of the mark as she sticks at Trade.

Simon Clarke, Chloe Smith and Tory chair Jake Berry were also ousted, while Chief Whip Wendy Morton went for the second time in a week – having been talked out of departing following the fracking vote debacle last Wednesday night.

Mr Hunt is staying on as Chancellor, a week before the crucial Halloween Budget and after the markets calmed significantly. The Pound was above $1.14 today, while government borrowing costs are down. 

Ms Braverman is the only female holder of a Great Office of State.

News of her appointment came around an hour after she walked up Downing Street and entered the famous black door, suggesting there might have been some haggling behind the scenes. 

But Gillian Keegan makes a leap up the ladder, appointed as Education Secretary. She has been a strong advocated of apprenticeships. 

Former Welsh Secretary Simon Hart has been appointed to the key post of Chief Whip.

One of Mr Sunak’s closest allies Oliver Dowden has been made Chancellor of the Duchy of Lancaster, running the Cabinet Office.

And another cheerleader, Mel Stride, takes on the Work and Pensions brief. 

Nadhim Zahawi, who went through extraordinary contortions first backing Mr Johnson then desperately switching to Mr Sunak, survived but was shifted to Tory chairman.  

Mr Sunak gave the bad news to ministers in private during a 90-minute bloodletting at his office in the House of Commons, before making appointments back in No10. 

Aides had insisted Mr Sunak would not repeat the mistakes of his predecessor Liz Truss by stuffing the top echelons of government with ultra-loyalists.  

Mr Shapps has taken Mr Rees-Mogg’s old job at Business, while Ms Badenoch has always coveted the education brief vacated by Mr Malthouse. 

Mr Cleverly survived despite backing Ms Truss over the summer and then Mr Johnson’s abortive comeback bid over the weekend. There had been speculation he would make way for Ms Mordaunt.

Mr Wallace was seen as at risk after Mr Sunak refused to commit to increasing budgets to 3 per cent of GDP by 2030. However, he is remaining in post.

The new premier told MPs yesterday that he wanted his government to represent the ‘views and opinions’ from across the Conservative Party.

Mr Rees-Mogg had branded Mr Sunak a ‘socialist’ during the last leadership contest, although he recanted his view and suggested he would be willing to serve in his government. Mr Clarke had been a staunch supporter of both Ms Truss and Boris Johnson’s comeback push.

Mr Buckland infuriated Team Sunak by initially backing him over the summer, before switching to Ms Truss when it became clear she would win. He is being replaced by fellow Welsh MP David TC Davies. 

On another tumultuous day in Westminster: 

• Mr Sunak plunged the knife in on Liz Truss today pledging to ‘fix’ her ‘mistakes’ and win back the public’s ‘trust’ after taking over as Britain’s 57th PM; 
• Mr Johnson has finally wished Mr Sunak well in his new role, after his abortive bid to make a comeback over the weekend; 
• Official figures have underlined the pain households are facing, with prices of key ‘value’ products surging by up to 60 per cent; 
• Foreign leaders have lined up to congratulate the new PM, with Indian counterpart Narendra Modi among those vowing to strengthen ties.  

Michael Gove outside Downing Street today. He was re-appointed as Levelling Up Secretary by Rishi Sunak 

Jeremy Hunt is staying as Chancellor, while Dominic Raab is back as deputy PM and Justice Secretary

Some 11 ministers have left the Cabinet after Rishi Sunak took charge today and launched a radical overhaul 

Rishi Sunak has pledged to run No10 with ‘integrity and humility’, but warned of ‘profound challenges’ to come as he kicked off his premiership

Grant Shapps (right) has been made Business Secretary, replacing Jacob Rees-Mogg (left) who has left government  

Penny Mordaunt was snubbed for a promotion, staying in her role as Commons Leader 

James Cleverly (pictured centre today) has clung on as Foreign Secretary in Mr Sunak’s overhaul

Brandon Lewis and Wendy Morton were among the Cabinet figures making an exit this afternoon

Ms Braverman sent Ms Truss’s premiership into a death spiral when she resigned last week.

Ostensibly her departure was over a security breach, as she sent an email from her personal account to a contact revealing details of an announcement on immigration policy.

However, her resignation letter included a damning assessment of the former PM. There was believed to have been a huge bust-up between Ms Braverman and Ms Truss – who were rivals in the Conservative leadership contest – the night before over immigration and visas policy last night. 

She was under pressure to sign off a plan to liberalise migration rules to help boost the economy, as part of Ms Truss’s drive for growth. The former minister appears to have sent details of the proposed policy to a parliamentary staffer, with speculation she could have been trying to sabotage it. 

The incoming premier addressed the nation from Downing Street this morning after being asked to form a government by King Charles in the traditional ‘kissing hands’ ceremony at Buckingham Palace.

In a sombre speech, he warned of ‘difficult’ decisions to deal with the ‘profound economic crisis’ facing the country, saying he ‘understood’ that Britons were suffering. Rebutting jibes that he is too wealthy to identify with the struggles of ordinary people, he said: ‘I fully understand how hard things are.’

In a swipe at Boris Johnson, who dramatically pulled out of the Tory leadership battle on Sunday night, Mr Sunak said the ‘mandate’ from the 2019 election did not belong to any individual. He also stressed his government will have ‘integrity, professionalism and accountability at every level’.

Earlier, Ms Truss hailed her ‘significant achievements’ as she gave her farewell remarks outside No10 – sealing her fate as the shortest-serving PM ever.

Watched by husband Hugh, her two daughters, staff and ministers, Ms Truss made a defiant valedictory speech in Downing Street – with little hint of emotion and no apology.

Mr Sunak said he admired the way Ms Truss – who soundly defeated him for the leadership just seven weeks ago before the wheels came off her administration – was ‘restless to create change’.

But he bluntly stated that ‘mistakes had been made’.  ‘Not born of ill will, or bad intentions,’ he said.

‘Quite the opposite in fact, but mistakes nonetheless. And I have been elected as leader of my party and your Prime Minister in part to fix them.

‘And that work begins immediately. I will place economic stability and confidence at the heart of this Government’s agenda.

‘This will mean difficult decisions to come. But you saw me during Covid doing everything I could to protect people and businesses with schemes like furlough.

‘There are always limits, more so now than ever. But I promise you this – I will bring that same compassion to the challenges we face today.’

He added: ‘I stand here before you ready to lead our country into the future. Ready to put your needs before politics.’ 

Mr Sunak faces a hellish in-tray, with more evidence of soaring inflation and a £40billion black hole in the public finances. 

Rishi Sunak is applauded into Downing Street by staff after delivering his first speech today

Rishi Sunak addressed the nation from Downing Street after being asked to form a government by King Charles in the traditional ‘kissing hands’ ceremony

Buckingham Palace has released an image of the King receiving the new PM Rishi Sunak today 

After her departure, Mr Sunak went in to be appointed as the new premier 

Liz Truss (pictured announcing her resignation last week) is gathering her Cabinet one last time, and will make a valedictory speech in Downing Street just after 10am as she draws a line under a disastrous 49 days at the helm of the country

Mr Sunak’s team arrived at the back gate to Downing Street earlier this morning 

Mr Cleverly said he will continue to support the UK’s allies around the world ‘especially standing with Ukraine’.

‘I’m honoured to be reappointed as Secretary of State for Foreign, Commonwealth and Development Affairs,’ he tweeted.

‘Continuing to protect UK interests overseas and support to our friends and allies around the world, defending democracy and freedom especially standing with (Ukraine).’

In her speech this morning, Ms Truss said it had been a ‘huge honour to lead the country’. 

‘In just a short period this government has acted urgently and decisively… we helped millions of households with their energy bills,’ she said. 

She gathered her Cabinet one last time this morning, telling them they could boast of ‘significant achievements’ and had been in charge at a ‘vital moment in the history of our country’.

In an uncompromising message despite the market carnage caused by the mini-Budget, she added that ‘lower taxes’ are needed and the country cannot be ‘low growth’. 

‘I believe in Britain… I know that brighter days lie ahead,’ she added.

Ms Truss, again accompanied by her family, then went to see the King at Buckingham Palace and formally resigned.

Friends say she will ‘take a break’ from politics, having passed the torch to a politician she soundly defeated in the previous Tory leadership campaign just seven weeks ago.

Mr Sunak will also have been mulling the £40billion black hole in the public finances today.

The new PM may want to tweak elements of the plan, and it is thought he could push it back by a couple of days if necessary.

Several key Tory manifesto pledges are expected to be on the table when the new PM looks at the books.

Mr Sunak has not confirmed whether he will press ahead with Ms Truss’s promise to keep the pensions triple lock – which would give retirees a bumper increase to their state pension next year.

And he will be under pressure to continue with a pledge he made in May, when he was chancellor, to uprated benefits by inflation.

Sources close to Mr Sunak refused to confirm the Medium Term Fiscal Plan would be announced on Monday, as planned.

However, it is unlikely to be held after November 3 when the Bank of England’s Monetary Policy Committee will decide whether to increase interest rates further.

Mr Sunak is already heading for his first budgetary row with MPs after refusing to commit to spending 3 per cent of GDP on defence.

Watched by husband Hugh, her two daughters, and No10 staff and aides, she said it had been a ‘huge honour to lead the country’

 Ms Truss’s husband and daughters had come to watch her bid farewell  to Downing Street

Cabinet ministers including Therese Coffey had gathered to support Ms Truss in a difficult moment

Ms Truss went to Buckingham Palace to tender her resignation formally to the King

Ms Truss posed for a final photo with her Cabinet this morning, before handing over to Mr Sunak 

His predecessor Ms Truss was forced into a retreat over budget cuts after warnings that Defence Secretary Ben Wallace could withdraw support for her if she ditched the pledge.

And there was speculation last night Mr Wallace could be one of those to go when Mr Sunak appoints his Cabinet today.

However, allies pointed out that Mr Wallace had no plans to resign, and is keen to keep talking to Mr Sunak about the budget.

Mr Wallace congratulated Mr Sunak yesterday, saying: ‘As PM he has my full support in bringing us together to govern in the interests of the whole of the UK.’

Mr Sunak will face fierce opposition from some Tory MPs if he attempts to row back on the promise, which experts say could cost £157billion.

The influential European Research Group of Tories said they were unable to back the former chancellor when he sought their backing because he ‘did not commit’ to the spending pledge.

Mr Sunak’s Tory leadership victory marks a spectacular political revival, just seven weeks after he was soundly defeated by Ms Truss in the struggle to succeed Mr Johnson. 

But after her extraordinary 44-day implosion, he now faces one of the toughest in-trays for any PM with the public finances in chaos and the worst of the cost-of-living to come.

One of his first tasks will be to form a new Cabinet that can unite the warring party, with Jeremy Hunt set to continue as Chancellor – a week before he delivers a crucial Halloween Budget – and speculation that Ms Mordaunt could become Foreign Secretary.

Ms Truss congratulated Mr Sunak on his ‘appointment’ this afternoon, saying he had her ‘full support’.

Mr Sunak received public backing from over 190 Tory MPs – well over half the total – racking up more numbers as prominent supporters of Mr Johnson jumped on the bandwagon. 

They included senior figures such as James Cleverly, Brandon Lewis, Simon Clarke, Iain Duncan Smith, Priti Patel, and Nadhim Zahawi.

Mr Sunak will be the country’s first non-white premier, and at 42 the youngest since the Napoleonic Wars.

Ms Mordaunt sounded defiance up until moments before the announcement, with allies claiming she had more than 90 supporters even though only 25 were publicly declared.

However, in a statement at 1.58pm Ms Mordaunt tweeted to admit she could not take the contest to the next phase. ‘Rishi has my full support,’ she posted.

Former Tory leader Sir Iain Duncan Smith said the new leader had made it clear that getting the economy moving was ‘critical’

Asked if Mr Sunak had an ‘impossible task’ leading a divided party, Sir Iain added: ‘I think today will have brought that to an end. It is not ungovernable, if it chooses to be.

‘But looking at the response inside there today I think people are relieved, they want to get behind the PM and we have to do it. There is no other choice.

‘So I don’t think there is a need for an election, I don’t want one now, I want us to deliver on what we said we would do and then go to the polls at the normal time.’

The breakneck developments appear to have cooled the markets, in what is being branded a ‘dullness dividend’. 

Government borrowing costs have eased, the Pound has rallied, and expectations for interest rates are more than a percentage point lower than after the mini-Budget.

However, other Johnsonites warned that he will need to call a snap election because he does not have a mandate – while the ex-PM himself suggested in his bombshell concession last night that he is only standing aside until the ‘right time’.

Mr Johnson claimed he reached the ‘very high hurdle of 102 nominations’ and believed there was a ‘very good chance’ that he would have been successful in the leadership contest.

Despite doubts being raised about the numbers, the 1922 seems to have verified they were true.

But the former PM concluded that continuing his drive for a return was ‘simply not the right thing to do’, citing the need to ‘unite’ the party.

Mr Johnson had been dealt a series of blows by big Tory players such as former Home Secretary Suella Braverman and Brexiteer Steve Baker pledging their support to Mr Sunak.

Meanwhile, Mr Sunak’s leadership victory caps a political journey that began seven years ago when he replaced William Hague in his Yorkshire seat at the 2015 election.

Mr Sunak only got his first ministerial job four years ago but became Chancellor of the Exchequer aged 39 in 2020.He is the youngest PM in the modern era at the age of 42 – younger even than David Cameron in 2010 and Tony Blair in 1997.