Rishi Sunak has pinned his fate on the economy and Rwanda flights as he struggles to recover from the local elections nightmare.

The PM admitted voters must see that his plan is 'making a difference' after the extraordinary meltdown - capped by the defeat of Tory West Midlands mayor Andy Street on Saturday night. 

Allies have pointed to the likelihood that economic figures later this week will confirm the UK is out of recession, while the first deportations to Rwanda should happen this summer. 

They also seized on projected national share from the local elections, suggesting Labour was not quite far enough ahead for an outright majority at a general election.  

Mr Sunak is gathering his Cabinet this morning and will be out and about on visits later. However, Tory rebels are still considering their next move as panic rises over the possibility of a wipeout. 

Appearing in front of TV cameras yesterday for the first time since the full local election results emerged, the PM acknowledged they were 'disappointing'.

Hinting that the election will not happen until the Autumn, vowed he was 'determined more than ever to demonstrate to the country that we are making progress on the areas that matter to them'.

A defiant Mr Sunak also said he was ready 'to fight' despite the local election results having thrown up fresh questions about his leadership of the Conservatives.

Rishi Sunak (pictured visiting an AI firm in London today) has pinned his fate on the economy and Rwanda flights as he struggles to recover from the local elections nightmare

Keir Starmer (pictured in Birmingham) was jubilant after local elections saw the Conservatives lose almost 500 seats and all-but-one elected mayor

The PM evaded questions about Tory MPs urging him to change course rightwards to win back voters.

The calamitous set of local elections saw the Conservatives lose almost 500 seats and all-but-one elected mayor, which has sparked a fresh battle in the Tory civil war.

Mr Sunak also saw the Tories lose the Blackpool South parliamentary by-election to Labour, with his party only narrowly beating third-placed Reform UK.

The PM has since seized on an analysis of the council results that suggested Labour would miss out on a House of Commons majority - even though experts are clear that voter behaviour is very different and the projection does not factor in Scotland at all. 

'These results suggest we are heading for a hung parliament with Labour as the largest party,' he said yesterday.

'Keir Starmer propped up in Downing Street by the SNP, Liberal Democrats and the Greens would be a disaster for Britain.

'The country doesn't need more political horse trading, but action. We are the only party that has a plan to deliver on the priorities of the people.'

Touring broadcast studios this morning, Cabinet minister Mel Stride insisted the Conservatives still had 'all to play for' at the general election despite the drubbing the party suffered.

The Work and Pensions Secretary told Times Radio: 'Firstly, with local elections clearly turnouts are low. I think a lot of Conservatives stayed away who are disgruntled.'

He said the general election will be an 'entirely difference contest' with 'what is a very volatile electorate'.

Mr Stride acknowledged the results from the May 2 elections had been 'very painful' for the Conservatives, adding the party now had to be 'united' to win back voters.

But he added: 'This is a volatile electorate, there are undoubtedly people that we need to win back to the Conservative cause. I suspect a large number of those people stayed away on election day last Thursday, and it's down to us now to do absolutely everything we can in a united way as the party to bring back those people to the Conservative fold.'