Rishi Sunak Set to Be UK’s Next Prime Minister

Borrowing costs for the UK government fell on Monday as former chancellor Rishi Sunak became the favourite to replace Liz Truss as prime minister.

The pound also rose against the dollar initially, before falling back below $1.13.

Sunak is currently the only candidate backed by more than 100 Tory MPs, the level required to take part in the ballot of party members.

Former PM Boris Johnson dropped out of the contest on Sunday.

Commons leader Penny Mordaunt remains in the race but is some way off securing 100 backers according to a BBC tally of MPs who have publicly declared their intentions.

The deadline is 14:00 BST on Monday.