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If he cherished the moment or savoured the win after losing out in the Tory leadership contest in the summer, Rishi Sunak kept it from view.

From his audience with the King straight to Downing Street, the new prime minister went straight to the lectern and made his inaugural address to the nation.

There were no staffers or MP supporters applauding their man. His wife did not stand outside No 10 and look on.

Sunak’s first full day in the top job – live updates

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Sunak: ‘I will fix mistakes’

From the choreography of the moment to the words he spoke, much about Mr Sunak’s launch day was an attempt to show the public his premiership was a break from the past – which is exactly how he wanted it.

Because this is a prime minister who resigned from Boris Johnson’s government after concluding that the business of government was not being conducted “properly, competently or seriously”.

He is a prime minister who warned Liz Truss that her “fantasy economics” would damage the economy. In the end, he had little time for either politician politically or policy-wise, and he used his first speech to try to and put clear blue water between him and them.

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When it came to Ms Truss, Mr Sunak was crystal clear – telling the public what she chose not to in her short final speech outside No 10.

“Some mistakes were made,” he told the public as he acknowledged he has been made leader “to fix them”.

And he also took a swipe at the policies – those unfunded tax cuts – she tried to implement as prime minister and which he detested, making it clear that his approach was different to hers: “The government I lead will not leave the next generation, your children and grandchildren, with a debt to settle that we were too weak to pay ourselves.”

When it came to Mr Johnson, Mr Sunak on the one hand praised his “warmth and generosity of spirit” – but on the other, he indirectly criticised the manner in which he ran his administration.

“This government will have integrity, professionalism and accountability at every level. Trust is earned. And I will earn yours,” he said.

Read more:
Sunak prepares for his first PMQs in the top job
Who’s in and who’s out in the new-look cabinet
The key words in Rishi Sunak’s speech

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‘Tories out’: Sunak heckled outside No 10

And finally, Mr Sunak made a pledge to the public that he’d turn the page on Conservative Party introspection and infighting and “put your needs above politics”.

“I understand too that I have work to do to restore trust after all that has happened.”

But this was a speech that also hinted at what was to come – with possible spending cuts and tax rises to help tackle the “profound economic crisis” the country is facing.

This a former chancellor-turned-PM who wants to right the wrongs of his predecessor and put “economic stability and confidence at the heart of this government’s agenda”, while sticking very clearly to the promises made in the 2019 manifesto as he sought to claim a mandate for his appointment, rather than public election, on the back of Mr Johnson’s general election win.

There would be “difficult decisions” ahead. His new fiscal plan is expected next week, in which he will have to try to reassure the markets that debt is under control, and outline some of those agonising choices over possible tax rises and spending cuts.

Perhaps that’s why faced with this level of economic pain, Mr Sunak didn’t choose to make significant cabinet changes.

Big beast moves (and more bruised egos) are a risk he was not minded to take right now.

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Does new cabinet mean unity?

The Change PM became Mr Continuity Cabinet as he kept Jeremy Hunt as chancellor and James Cleverly as foreign secretary.

He even brought Suella Braverman back as home secretary, despite her having to resign from that role just six days ago for a security breach (sending official documents via her personal email) which broke the ministerial code.

Overall, about a third of his cabinet were still in post. He did, however, try to build a unity cabinet in a way that his two predecessors did not – bringing in Ms Braverman and Kemi Badenoch from the right of the party, and keeping Liz Truss’s deputy and key ally Therese Coffey in this top team.

There were jobs too for arch-Johnsonites, be that James Cleverly at the Foreign Office or Chris Heaton at the Northern Ireland office.

He also brought back experience and brought in his own people – be that putting Michael Gove back into the department of levelling up, or his key ally Oliver Dowden into the powerful Duchy of Lancaster role to run the Cabinet Office.

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Grant Shapps was put into the Department of Business while Dominic Raab was reappointed deputy prime minister and made justice secretary.

“Unity, experience and competence” is how one No 10 insider explained the reshuffle to me last night. “We do need a bit of experience around the cabinet table with the economy and the international situation.”

He will need all the help he can get from this team in the coming days.

For this is a new prime minister who is about to be tested in the toughest set of political and economic circumstances than any leader has faced in decades.

The lingering question has to be whether he is up to the extreme challenges of being prime minister.

At just 42 years old, he is the youngest serving prime minister in over 200 years and has clocked up just seven years in parliament and three years in cabinet.

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How ‘profound’ are our economic woes?

He is relatively untested and has, say his critics, displayed a shocking lack of political nous for someone with ambitions for the highest office.

They point to revelations in April that Mr Sunak’s multimillionaire wife Akshata Murty was claiming non-domicile status – a scheme that allows people to avoid tax on foreign earnings – when her husband was chancellor as politically naive (Ms Murty has since changed her tax status).

There was also his admission that he’d held a US green card for two years – which means he had to pay US tax on worldwide income and pledge the US as his forever home – while serving as chancellor, with perhaps ambitions to run as PM.

Whether he was advised badly, or he didn’t see the red flags himself, these were scandals that could have been avoided, which in turn question his judgement.

Read more:
Why is Sunak casting such a sombre mood?
How yesterday unfolded – in pictures
What does the prime minister actually do?

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‘I hope Sunak brings our energy prices right down’

That political judgement was questioned again within hours of him becoming prime minister, as he reappointed Ms Braverman as home secretary.

It was all too easy for the Labour Party, who derided the new prime minister for pledging professionalism while putting – to quote shadow home secretary Yvette Cooper – someone “so careless and slapdash into that job”.

Meanwhile, his decision to leave his challenger Penny Mordaunt in the relatively junior cabinet role of Leader of the Commons – friends told me she wanted foreign secretary – may have been seen by her backers as a rather peevish thing to do, although one of her supporters told me Ms Mordaunt was happy with the job.

But for all the politics of this moment, it is the policies that will matter for Mr Sunak in the coming days as he tries to set out an economic plan that will reassure the markets, his party and the public, that he is up to the job and can handle the task in hand.

He told the British public on the steps of Downing Street that he “understood how difficult this moment is”.

This no doubt a message to himself too.

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Michael Gove handed peerage – as Jeremy Hunt and cricketer James Anderson knighted

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Michael Gove handed peerage - as Jeremy Hunt and cricketer James Anderson knighted

Veteran cabinet minister Michael Gove has been awarded a peerage in Rishi Sunak’s resignation honours list.

Mr Gove – now editor of The Spectator magazine – was first elected to parliament in 2005 and immediately joined then-Conservative leader David Cameron’s shadow cabinet.

He was appointed education secretary when the party entered government in 2010 and held multiple cabinet posts until the 2024 general election, when he stood down from parliament.

Mr Sunak elevated seven allies to the House of Lords, including former cabinet ministers Mark Harper, Victoria Prentis, Alister Jack, and Simon Hart. Former chief executive of the Conservative Party, Stephen Massey, also becomes a peer, as well as Eleanor Shawcross, former head of the No10 policy unit. He also awarded a number of honours.

It is traditional for prime ministers to award peerages and other gongs upon their resignation from office – with key political allies, donors and staff often rewarded.

An outgoing prime minister can request that the reigning monarch grants peerages, knighthoods, damehoods or other awards in the British honours system to any number of people.

In the case of peerages, the House of Lords Appointments Commission vets the list, and for other honours, the Cabinet Office conducts checks.

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Resignation honours are separate from dissolution honours, which are awarded by the incumbent prime minister and opposition leaders after the dissolution of parliament preceding a general election.

Here are the biggest names given honours by Mr Sunak:

Michael Gove – peerage

Former cabinet minister Michael Gove. Pic: PA
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Former cabinet minister Michael Gove. Pic: PA

From when the Conservatives returned to government in 2010, Michael Gove spent almost the whole time in a ministerial role.

After reforming the education system, he went on to hold roles like chief whip, environment secretary, justice secretary and housing secretary.

He led the pro-Brexit side of the 2016 referendum alongside Boris Johnson, and famously sunk the latter’s leadership bid with his own.

However, both failed at that juncture, and Mr Gove’s reputation never recovered to allow him another go at the top job.

The debt was repaid when Mr Johnson fired Mr Gove as his administration collapsed in 2022.

Mr Gove returned to government under Rishi Sunak, and ultimately retired from the Commons at the 2024 election.

James Anderson – knighthood

Lancashire bowler James Anderson. Pic: PA
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Lancashire bowler James Anderson. Pic: PA

One of England’s most successful cricketers, Jimmy Anderson, has been awarded a knighthood in avid cricket fan Rishi Sunak’s resignation honours list.

He is regarded as one of the greatest bowlers in the history of the sport, and holds the record for the most wickets taken by a fast bowler in Test cricket.

Jeremy Hunt – knighthood

Jeremy Hunt.
Pic: Reuters
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Jeremy Hunt.
Pic: Reuters

A former chancellor and serial runner-up in Tory leadership competitions, Jeremy Hunt was ever present in Conservative cabinets while the party was in government.

He was both foreign secretary and defence secretary before failing to take over the party after Theresa May stood aside.

Following a stint on the backbenches, Mr Hunt returned as chancellor under Liz Truss in a bid to stabilise markets – retaining this position under Rishi Sunak.

Despite persistent speculation he was set to be ditched in favour of Claire Coutinho, Mr Hunt kept his job until the 2024 general election – where he won his seat and now sits as a backbencher.

James Cleverly – knighthood

James Cleverly.
Pic: PA
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James Cleverly.
Pic: PA

A former leader of the Conservatives in the London Assembly, James Cleverly entered parliament at the 2015 general election as the MP for Braintree.

In 2018, he was appointed deputy chairman of the party, and in April 2019, was appointed a minister in the Brexit department.

Boris Johnson appointed him as party chairman after taking over the top job, and he took on a succession of junior ministerial posts before becoming education secretary following Mr Johnson’s resignation as prime minister.

Liz Truss appointed him as foreign secretary – a post he held until November 2023 when Rishi Sunak brought back David Cameron for the role, and he took over as home secretary – a post he held until the general election.

Mr Cleverly was one of the lucky cabinet ministers to survive the Labour landslide and retained his seat. But he was less successful in the Conservative Party leadership contest, losing out in the final round of MP voting.

Andrew Mitchell – knighthood

Andrew Mitchell.
Pic: PA
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Andrew Mitchell.
Pic: PA

The former deputy foreign secretary has been a fixture in Westminster since 1987, when he was first elected as the MP for Gedling. He was appointed to the government in 1994, but lost his seat in the 1997 Tony Blair landslide.

He returned to parliament in 2001 as the MP for Sutton Coldfield, and took on a number of shadow cabinet and then cabinet roles, culminating in his appointment to the Foreign Office in 2022, before becoming deputy foreign secretary to David Cameron in 2024.

He rose to public prominence in September 2012 when he allegedly swore when a police officer told him to dismount his bicycle and leave Downing Street through the pedestrian gate rather than the main gate. The incident became known as “Plebgate”.

Mel Stride – knighthood

Shadow chancellor of the Exchequer Mel Stride after Rachel Reeves delivered her spring statement to MPs.
Pic: PA
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Shadow chancellor Mel Stride.
Pic: PA

One of Rishi Sunak’s closest aides, he chaired his campaign to be Tory leader against Liz Truss and was rewarded with the Work and Pensions brief when his man finally entered Number 10.

He was also a prominent figure in the downfall of Ms Truss as chair of the Treasury select committee – regularly requesting information from the Treasury and Bank of England that highlighted damaging information.

A capable media performer, he was ever present during the general election as he tried unsuccessfully to get Mr Sunak back into office.

Mr Stride kept his seat after the vote, and was rewarded by Kemi Badenoch with a role as shadow chancellor of the exchequer.

Stephen Massey – peerage

Stephen Massey
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Stephen Massey

Described as a “sensible man” by former chancellor George Osborne, Stephen Massey was appointed chief executive of the Conservative Party in November 2022 after Rishi Sunak took over as leader in the coronation leadership contest following the collapse of the Truss government.

Having spent his career as a financial adviser, Mr Sunak probably thought he was a safe pair of hands in which to entrust the leadership of the party machinery as they built their war chest ahead of the general election to come.

The personal donations of £343,000 to the party and £25,000 to Mr Sunak’s leadership campaign also likely made him an attractive candidate for the job.

Has Rishi Sunak previously awarded honours?

Mr Sunak previously granted peerages to former prime minister Theresa May, Sir Graham Brady, the former chairman of the influential Conservative backbench 1922 committee, as well as his right-hand man Liam Booth-Smith on 4 July 2024 – the day of the general election.

He lost the election by a landslide to Sir Keir Starmer’s Labour Party, and resigned as prime minister that day. He remains in parliament as the MP for Richmond and Northallerton.

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This is a remarkable step by the government – and Donald Trump, China and Reform UK have all played their part

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This is a remarkable step by the government - and Donald Trump, China and Reform UK have all played their part

When the sun sets on Scunthorpe this Saturday, the town’s steelworks will likely have a new boss – Jonathan Reynolds.

The law that parliament will almost certainly approve this weekend hands the business secretary the powers to direct staff at British Steel, order raw materials and, crucially, keep the blast furnaces at the plant open.

This is not full nationalisation.

But it is an extraordinary step.

The Chinese firm Jingye will – on paper – remain the owner of British Steel.

But the UK state will insert itself into the corporate set-up to legally override the wishes of the multinational company.

A form of martial law invoked and applied to private enterprise.

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That will come at a cost to the taxpayer.

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No number has been specified, but there are wages to pay and orders to make at a site estimated to already be losing £700,000 a day.

There is also clear frustration in government at how the Chinese owners have engaged in negotiations around modernising the Scunthorpe site.

“Jingye have not been forthright throughout this process”, said the business secretary in his department’s official announcement about the new laws.

Time is so tight because of the nature of the steel-making process.

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Inside the UK’s last blast furnaces

Once switched off, blast furnaces are very hard to turn back on.

If this had happened in Scunthorpe – as seemed likely in a matter of days – then it would have been game over.

This move keeps the show on the road and opens up more time for talks over the long-term future of the plant.

While the official line in Whitehall is that “all options are on the table”, nationalisation seems increasingly likely.

That would need more legislation, if it was done – as seems likely – without the approval of the current owner.

Finding an alternative commercial partner has not been ruled out, but one is not waiting in the wings either.

As for what that long-term future looks like, with just five years of life left in the Scunthorpe blast furnaces, modernisation is inevitable.

Port Talbot’s plant saw its blast furnaces closed last year amid a switch to the more environmentally friendly electric arc furnaces and a loss of thousands of jobs.

A general view shows British Steel's Scunthorpe plant.
Pic Reuters
Image:
A general view shows British Steel’s Scunthorpe plant.
Pic Reuters

Political figures in Wales are now questioning why nationalisation wasn’t on the table for this site.

The response from government is that the deal was done by the previous Tory administration and the owners of the South Wales site agreed to the terms.

But there is also a sense that this decision over British Steel is being shaped by the domestic and international political context.

Labour came to power promising to revitalise left-behind communities and inject a sense of pride back into places still reeling from the loss of traditional industry.

With that in mind, it would be politically intolerable to see the UK’s last two blast furnaces closed and thousands of jobs lost in a relatively deprived part of the country.

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One of the two blast furnaces at British Steel's Scunthorpe operation
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One of the two blast furnaces at British Steel’s Scunthorpe operation

Reform UK’s position of pushing for full and immediate nationalisation is also relevant, given the party is in electoral pursuit of Labour in many parts of the country where decline in manufacturing has been felt most acutely.

The geo-political situation is perhaps more pressing though.

Just look at the strength of the prime minister’s language in his Downing Street address – “our economic and national security are all on the line”.

The government’s reaction to the turmoil caused by President Donald Trump’s pronouncements on tariffs and security has been to emphasise the need to increase domestic resilience in both business and defence.

Becoming the only G7 nation unable to produce virgin steel at a time when globalisation appears to be in retreat hardly fits with that narrative.

It would also present serious practical questions about the ability of the UK to produce steel for defence and the broader switch to green energy production.

Then there is the intriguing subplot around US-China trade.

While this decision is separate from discussions with the White House on tariffs, one can imagine how a UK move to wrestle control of a site of national importance from its Chinese owner might go down with a US president currently engaged in a fierce trade war with Beijing.

This is a remarkable step from the government, but it is more a punctuation mark than a full answer.

The tension between manufacturing and decarbonisation remains, as do the challenges presented by a global economy appearing to fragment significantly.

But one thing is for sure.

As a political parable about changes to traditional industry and the challenges of globalisation, the saga of British Steel is hard to beat.

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

Hundreds of barber shops and other cash-heavy businesses have been targeted in a three-week money laundering blitz.

Police went to 265 premises, including vape shops, nail bars, American-themed sweet shops and car washes across England in a crackdown on high street crime.

The National Crime Agency (NCA) said 35 arrests were made, 97 people suspected to be victims of modern slavery were placed under police protection, and bank accounts containing more than £1m were frozen.

More than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, and more than 8,000 illegal vapes were also seized during Operation Machinize, which involved 19 different police forces and regional organised crime units.

Officers also found two cannabis farms containing a total of 150 plants, while 10 shops have been shut down.

The NCA estimates that £12bn of criminal cash is generated in the UK each year with businesses such as barber shops, vape shops, nail bars, American-themed sweet shops and car washes often used by criminals.

Goods seized during their visit to a vape shop in Rochdale.
Pic: GMP/PA
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Goods seized during a visit to a vape shop in Rochdale. Pic: GMP/PA

Police officers at a shop in Tameside. 
Pic: GMP/PA
Image:
Police officers at a shop in Tameside. Pic: GMP/PA

Rachael Herbert, deputy director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targeted barber shops and other high street businesses being used as cover for a whole range of criminality, all across the country.

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“We have seen links to drug trafficking and distribution, organised immigration crime, modern slavery and human trafficking, firearms, and the sale of illicit tobacco and vapes.

“We know cash-intensive businesses are used as fronts for money laundering, facilitating some of the highest harm and highest impact offending in the UK.”

Pic: NCA
Image:
Money laundering crackdown. Pic: NCA

Security minister Dan Jarvis said the operation “highlights the scale and complexity of the criminality our towns and cities face”.

“High street crime undermines our security, our borders, and the confidence of our communities, and I am determined to take the decisive action necessary to bring those responsible to justice,” he said.

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