Rishi Sunak officially became the UK’s 57th prime minister after meeting King Charles III on Tuesday.
Sunak, 42, is the country's first British Asian premier.
The monarch formally asked the new Tory leader to form the new government at the Buckingham palace.
Sunak, the former Treasury chief, won the Conservative party's leadership race after rival Penny Mordaunt dropped out minutes before the candidacy deadline.
After accepting the duty to form a government, Sunak said the UK is “facing a profound economic crisis.”
“The aftermath of COVID still lingers, Putin's war in Ukraine has destabilized energy markets and supply chains the world over,” Sunak said at Downing Street.
Paying tributes to his predecessor Liz Truss, Sunak said “some mistakes were made – not born of ill will, or bad intentions.”
“I have been elected as leader of my party and your prime minister in part to fix them.”
“I will place economic stability and confidence at the heart of this government's agenda,” Sunak added.
He said: “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.”
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