Liz Truss has chaired the first meeting of her Cabinet ahead of a debut showdown against Sir Keir Starmer at Prime Minister's Questions at lunchtime.
The Prime Minister finished appointing her top team last night and met with her senior ministers in No 10 this morning.
Ms Truss was expected to present them with her final plan for tackling rising energy bills and the wider cost-of-living crisis. The meeting lasted for approximately one hour.
The premier will head to the House of Commons later this morning to take part in her first PMQs at noon.
She will undoubtedly be given a warm welcome by Tory MPs when she arrives in the Commons but Sir Keir will be keen to set the tone for their future clashes by subjecting her to a brutal grilling.
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Andrew Bailey, the Governor of the Bank of England, has said a recession is the "most likely outcome" for the UK economy.
He told the Treasury Select Committee: "The recession, I hope it doesn't happen, but obviously we have forecast it because we think it is sadly the most likely outcome.
"Of course it is overwhelmingly caused by the actions of Russia and the impact on energy prices."
Chancellor Kwasi Kwarteng is facing a "dangerous cocktail of weak growth and pressures on public services" and he must be honest with the public about the difficult choices he will have to make in the coming months, according to a leading think tank.
The Institute for Government said in a new report that Mr Kwarteng will have to choose between cutting spending on public services, raising other taxes and breaking the government's fiscal rules if he goes ahead with the tax cuts promised by Liz Truss.
The think tank said Mr Kwarteng should use the emergency fiscal event being planned for later this month to spell out how he will approach spending and tax beyond this winter.
Tom Pope, the IfG's deputy chief economist, said: "Kwarteng faces a dangerous cocktail of weak growth and pressures on public services, and Truss's tax cuts will more than use up the remaining, and diminished, fiscal headroom before any extra money is provided for public services.
"It is encouraging that Truss is looking at policies to boost growth, but cuts to tax rates are unlikely to be achieve this and Kwarteng should instead explore tax reforms that would improve the UK's flawed system. Suspending or abandoning the fiscal rules would only be a temporary solution, and the new chancellor will need to acknowledge the fiscal reality sooner or later."
Andrew Bailey, the Governor of the Bank of England, is currently giving evidence to the Treasury Select Committee.
He said that there has been "extreme volatility" in energy markets in recent weeks. He said he welcomed the fact that Liz Truss will set out her plan on energy bills this week.
He told MPs: "I do very much welcome the fact that there will be, as I understand it, announcements this week because I think that will help to sort of in a sense frame policy and that is important.
"I think it is important that there is a clear way forward on policy so I welcome that because I think that will be important for markets to understand what is going to happen."
Liz Truss did not used to be a fan of dishing out cash.
The Prime Minister began her campaign for the top job by stating her goal is "lowering the tax burden, not giving out handouts".
But circumstance has forced her hand. Spiralling energy bills mean Ms Truss has conceded she will be forced to dig deep into the Treasury's pocket.
Here is a breakdown of how Ms Truss could fund her energy bill giveaway.
Today: Liz Truss held her first Cabinet meeting and will face Sir Keir Starmer at Prime Minister's Questions at noon. Appointments of junior ministers will then be made this afternoon.
Tomorrow: Ms Truss is expected to outline measures aimed at tackling the energy crisis which will include freezing energy bills for households at around £2,500.
Within first two weeks: The premier will bring in an emergency budget which will cut taxes, reverse the National Insurance hike and suspend the green levy on energy bills.
Week beginning September 19: Ms Truss expected to head to New York for the United Nations general assembly.
October 2-5: The Conservative Party's annual conference will take place in Birmingham.
Joe Biden stressed the importance of upholding the Northern Ireland Protocol in his first phone call with Liz Truss last night.
According to the White House's account of the call, the two discussed their "shared commitment to protecting the gains of the Belfast/Good Friday Agreement and the importance of reaching a negotiated agreement with the European Union on the Northern Ireland Protocol".
The transatlantic relationship could be strained if Ms Truss pushes ahead with a plan to override parts of the Protocol, with Mr Biden proud of his Irish roots and taking a keen interest in the issue.
You can read the full story here.
The first meeting of Liz Truss's Cabinet has now concluded and senior ministers have started to leave No 10. The meeting lasted for approximately one hour.
Anne-Marie Trevelyan, the Transport Secretary, was the first minister to leave, closely followed by Ranil Jayawardena, the Environment Secretary, and Kit Malthouse, the Education Secretary.
Mr Jayawardena described the first Cabinet meeting as "very positive" when journalists asked him how it went as he left.
Scotland Secretary Alister Jack and Culture Secretary Michelle Donelan were also seen leaving.
Liz Truss used her first speech as Prime Minister yesterday to reassure the country that the new Government will be bringing forward new cost-of-living help.
The exact details of the scheme are yet to be confirmed but it is expected that Ms Truss will announce a freeze on annual energy bills for households at around £2,500.
That freeze is likely to last for this winter and next winter with help also expected to be brought forward for struggling businesses.
The vast intervention will be funded with borrowing, and the total cost could be more than £150 billion.
You can read more about what we know here.
?? It is a privilege to be appointed the Secretary of State for @DefraGovUK.
?? From food security and backing British farmers, to water security and growing our rural economy, I know that there is much to do.
????? It is so important to recognise where our food comes from.
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Kemi Badenoch, the new International Trade Secretary, arrived at No 10 at 8.50am, 20 minutes after Cabinet was due to start.
Therese Coffey, the new Health Secretary, has insisted that spending on health and social care will remain "exactly the same" despite Liz Truss's planned reversal of the National Insurance hike.
She told BBC Breakfast: "Instead of having in effect a ring-fenced levy, we will be funding that out of general taxation, so the investment going into health and social care will stay exactly the same."
On hospitals, Ms Coffey said: "There are actually thousands of people currently in hospital today, who don't need clinically to be in hospital that need that care for once they leave hospital. That's why it's this combination of focusing on social care and health is going to be critical."
The first meeting of Liz Truss's new Cabinet is now well underway inside No 10.
It is a major moment for the new Government and we are expecting to receive a readout from Downing Street a little bit later on this morning setting out what was discussed.
The cost-of-living crisis will undoubtedly feature heavily and Ms Truss is also likely to want to use the meeting to set the tone for her administration and to spell out her key aims and objectives.
David Lammy, Labour's shadow foreign secretary, has revealed he sent private messages to Kwasi Kwarteng and James Cleverly to congratulate them on being appointed as Chancellor and Foreign Secretary.
Commenting on the diversity of the new Cabinet, Mr Lammy told Times Radio: "I think that we are a multi-ethnic, multicultural country. I remember when we won the Olympics and staged the Olympics in 2012, that was the vision we presented to the world.
"This story really began under Tony Blair with the appointment of people like Paul Boateng, Valerie Amos, Patricia Scotland who's now Secretary General of the Commonwealth, Valerie Amos, who's running an Oxford College.
"And I'm very, very pleased to see these very big offices of state in the hands of people I disagree with, of course, I disagree with Kwasi Kwarteng and James Cleverly, but I did text them yesterday to congratulate them. It's a great achievement."
Cabinet ministers are now arriving at No 10 ahead of the first meeting of Liz Truss's new top team this morning.
Kit Malthouse, the new Education Secretary, and Anne-Marie Trevelyan, the new Transport Secretary, were among those photographed as they arrived.
Suella Braverman, the new Home Secretary, and Jacob Rees-Mogg, the new Business Secretary, were also photographed.
Perhaps unsurprisingly all the Cabinet arrivals seemed to be in very good moods.
The meeting is due to get underway at approximately 8.30am.
Liz Truss spoke with Joe Biden last night and Downing Street has just released a picture of the phone call taking place.
No 10 said last night that Ms Truss "looked forward to working closely with President Biden as leaders of free democracies to tackle shared challenges, particularly the extreme economic problems unleashed by Putin's war".
Therese Coffey has said she will do her best to be a "role model" as Health Secretary.
LBC Radio presenter Nick Ferrari told Ms Coffey during an interview this morning: "Some commentators have suggested that as someone who likes a cigar and possibly enjoys the odd noggin, as do I, and, let's be candid, you and I could possibly do with losing a pound or two, you are not necessarily the best example to be the Secretary of State for Health. Therese Coffey, how would you respond?"
Ms Coffey said: "My focus is on how we deliver for patients and I appreciate I may not be the role model but I am sure that the Chief Medical Officer and others I am sure will continue to be role models in that regard and I will do my best as well."
She added: "I will probably get all sorts of comments, Nick, but nevertheless, on a more serious matter, I have been a patient of the NHS too and have had some brilliant experiences and I have had some experiences where it could have been better. My focus is on patients and that is what I will be making sure the department focuses on too."
Therese Coffey's phone started playing a song by the American rapper Dr Dre during a broadcast interview with LBC Radio this morning.
Ms Coffey's phone started to play the artist's "Still D.R.E." song, prompting the presenter Nick Ferrari to ask: "Are you alright over there? Have you got a phone ringing? Are you okay?"
Ms Coffey replied with a laugh: "I have just realised my alarm is going off on my phone, I apologise. You are getting a bit of Dr Dre. It is just an eight o'clock alarm."
Therese Coffey has said her priority for improving the NHS will be based on the acronym of "ABCD" - ambulances, backlog, care, doctors and dentists.
The new Health Secretary told LBC Radio that "we need to make improvements and we need to make them quickly".
Asked if she is concerned about potential industrial action in the NHS over pay disputes, she said: "Well, I hope that of course people will continue to put their patients first. I think that really matters. But it is not for me to determine [pay awards]."
She added: "I think people will be receiving a significant package that has already been agreed and that is through the independent pay review body. We have accepted that recommendation."
Asked if she knew how much junior doctor pay is due to go up by, Ms Coffey said: "I don't have that information to hand."
It is worth pointing out that when Therese Coffey said Liz Truss will unveil her energy bills plan "this week", that could mean it is Thursday or Friday because the House of Commons is sitting both days. That may seem incredibly obvious, but let me explain.
The expectation would be that a major announcement such as freezing energy bills would be delivered first to the Commons which means Ms Truss would need to announce it on a sitting day. The Commons does not sit every Friday.
Fridays are normally set aside for the debate of Private Members' Bills - draft legislation brought forward by backbench MPs - rather than normal Government business and they are not usually well-attended.
That means that Thursday - tomorrow - is looking like the best bet for the big announcement.
Liz Truss's Cabinet is the most diverse Cabinet ever assembled.
For the first time in history, none of the Great Offices of State - Prime Minister, Chancellor, Home Secretary and Foreign Secretary - is held by a white man.
You can read a full breakdown of who got what job here.
Therese Coffey defended Liz Truss's new Cabinet after the Prime Minister decided to axe Rishi Sunak supporters and fill her top team with her own backers.
Ms Coffey said that she believes Ms Truss has appointed a "really diverse Cabinet" and it is now entirely "focused on delivery".
Asked if she has any concerns that the composition of the Cabinet could alienate some Tory MPs - namely those who did not support Ms Truss during the leadership contest - Ms Coffey said she believes the Government will be a "broad church".
She told Sky News: "She isn't focused on people who support her or not, she is focused on a government of all the talents.
"The rest of the Government will continue to be appointed today and I think people will be able to see that we will continue to focus and have a broad church of people in our Government and I am very conscious that the Conservative Party... will continue to be united and to make sure that we really turn our focus on delivery of our manifesto, delivery against the challenges that we face today, right now, and indeed making sure that we are also concerned, sufficiently, to make sure that we are focused on the next general election too."
Therese Coffey was asked how Liz Truss intends to fund her energy bills plan.
The Deputy Prime Minister said that "more will be said about aspects of that during this week" but would not be drawn on the specifics.
Told that "general taxation" would not be enough to fund a bills freeze and that borrowing will be required, Ms Coffey again said that details will be "set out during this week and people, including you, will just have to wait for the detail of that".
Therese Coffey is on the morning broadcast round for the new Government.
The Deputy Prime Minister and Health Secretary said she believed Liz Truss set out a "clear vision" for the nation when she delivered her first speech in Downing Street yesterday afternoon.
Asked when Ms Truss will announce her new energy bills plan, Ms Coffey said that the Government is still "finalising the details".
Asked again when the plan will be announced, Ms Coffey said the "intention" is for the proposals to be set out to Parliament this week.
Here is a reminder of who is in Liz Truss's first Cabinet:
Also attending Cabinet: Wendy Morton (Chief Whip), Chris Philp (Chief Secretary to the Treasury), Michael Ellis (Attorney General), Edward Argar (Minister for the Cabinet Office), Vicky Ford (Minister for Development), Tom Tugendhat (Minister for Security), James Heappey (Armed Forces Minister), and Graham Stuart (Climate Minister).
Good morning and welcome to today's politics live blog.
Liz Truss will meet with her Cabinet in No 10 at 8.30am and she is expected to present her senior ministers with her final plan for tackling rising energy bills.
Ms Truss will then head to the House of Commons for her debut Prime Minister's Questions at noon.
It promises to be another very busy day in Westminster and I will be on hand to guide you through the key developments.