Rishi Sunak says he has been elected as leader of the Conservative party and the UK’s prime minister to fix some mistakes made by his predecessor Liz Truss, who resigned last week after just 45 days in office.

Sunak’s comments were made today in his first speech as Prime Minister outside Downing Street.

He said: “I want to pay tribute to my predecessor Liz truss. She was not wrong to want to improve growth in this country.”

“It is a noble aim. And I admired her restlessness to create change. But some mistakes were made Not borne of ill will or bad intentions. Quite the opposite in fact, but mistakes nonetheless.”

Sunak made the address after being accepted as prime minister by His Majesty King Charles at Buckingham Palace earlier this morning. 

Also in his speech, the new prime minister said: “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.”

“I will unite our country not with words, but with action. I will work day in and day out to deliver for you. This government will have integrity, professionalism and accountability at every level. Trust is earned and I will earn yours.”

Sunak also said he was “grateful” to Boris Johnson for his “incredible achievements as prime minister”.

“I know he would agree that the mandate my party earned in 2019 is not the sole property of any one individual. It is a mandate that belongs to and unites all of us. And the heart of that mandate is our manifesto. I will deliver on its promise.”

“A stronger NHS, better schools, safer streets, control of our borders, protecting our environment supporting our Armed Forces leveling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate, and create jobs.”

He concluded: “I stand here before you ready to lead our country into the future, to put your needs above politics, to reach out and build a government that represents the very best traditions of my party.”

“Together, we can achieve incredible things. We will create a future worthy of the sacrifices so many have made and fill tomorrow and every day thereafter with hope.”

It was announced yesterday that the former chancellor would become the new prime minister after Penny Mordaunt dropped out of the running for party leadership.

After the news was announced, Cluttons director of research and insight Grainne Gilmore said the appointment of a new prime minister is a “much-needed step away from the political instability of the last few months”.

“The next hurdle is the budget next Monday, but if there are no major surprises, there will then be an opportunity for politicians to get back to business as usual, something which the markets and businesses will welcome.”

Speaking on residential, Gilmore adds: “More political certainty should mean that money market rates, which determine the pricing of fixed-rate mortgages, begin to recede, which could bring down the cost of fixed-rate deals.”

“However, it is very likely that the Bank of England will increase the base rate next month, which will result in higher payments for those on variable rate home loans.”

“Once the government is stabilised, they should prioritise providing clarity around housing policies, including planning reforms, to provide a clear steer for homeowners and businesses across the industry.”

Meanwhile, Audley Group chief executive Nick Sanderson commented that Sunak “has a task on his hands and must get his feet under the table quickly”. 

“Key issues like housing, health and social care have been left on the ‘to-do’ list through the political turmoil of the last few months, and now desperately need attention. This doesn’t have to mean investment, especially at a time when the government needs to look at cost-cutting, but it does require thinking cleverly.”

“Planning reform, which mandates for age-specific housing in any new housing scheme, would have the single greatest impact on both the housing market, but also the way we look after our ageing population.”

“And importantly, for the new prime minister, this doesn’t need a cash injection from the government coffers. Progress has started with the cross-departmental Housing with Care taskforce, and this must now be prioritised.”

Sunak said yesterday that the country now needs “stability and unity and I will make it my utmost priority to bring our party and our country together”.

His appointment today makes him the country’s third prime minister is as many months.

Sunak served as chancellor of the exchequer from 2020 to 2022, notably during the pandemic.