RISHI Sunak said he will begin fixing the mistakes made by Liz Truss’s short-lived government “immediately”, signalling that public spending cuts may be needed to do so.

The new Prime Minister used his first speech before entering No 10 to thank his two predecessors of the past two months, but tried to draw a line under their leadership.

Sunak said he would put "economic stability and confidence at the heart of the government’s agenda" in the wake of Truss's disastrous mini-Budget that saw the pound hit record lows against the dollar and the Bank of England take emergency action to protect pension funds

He admitted that "mistakes were made" – but not out of "ill will or bad intentions" – adding that he had been made Prime Minister "in part to fix them".

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Sunak further said that sorting out the economic situation would "mean difficult decisions to come".

"Will not leave your children and grandchildren with a debt to settle that we were too weak to pay ourselves," he added.

As well as pointing to Truss’s economic mismanagement, Sunak also hinted at a departure from Boris Johnson’s style of governing.

The new Tory leader said his government would have “integrity, professionalism, and accountability at every level”.

However, he paid tribute to Johnson, who he said had a "warmth and generosity of spirit", and Truss, who he said had a "restlessness to create change".

Sunak further hinted at arguments against holding a General Election – which opposition parties and even some Tories have called for – saying that the mandate won in 2019 was “not the sole property of any one individual” but belonged to the Conservatives as a whole.

He pledged to deliver the heart of the manifesto that had won the 2019 mandate, citing levelling up and "building an economy that embraces the opportunities of Brexit" as key aims. 

The speech came after Sunak, 42, became the UK’s first Hindu PM, the first of Asian heritage, and the youngest for more than 200 years.

The National: Liz Truss resigning as prime minister on Thursday.

He was appointed Prime Minister by the King after the resignation of Truss (above) after just 49 days in office, making her the shortest-serving leader in history.

SNP Westminster leader Ian Blackford claimed that Sunak was "running scared of democracy by refusing to hold an election". 

He went on: "He is feart of voters and too afraid to face their verdict, after the Tories plunged the UK into economic chaos.

"People are paying through their teeth for Tory mistakes as mortgages rise, pensions fall, and inflation soars. No one voted for this – and the Tories have no mandate to impose the devastating cuts they are now planning.

"Rishi Sunak shares the blame for the Tory economic crisis. He cannot present himself as the answer to a problem he created as chancellor when he imposed a hard Brexit, slashed Universal Credit, and raised taxes on everyone else while his own family avoided them."