The centre-right National Party caucus unanimously backed English at a meeting today morning and he travelled to Government House in Wellington a few hours later to officially take over.
State Services Minister Paula Bennett was named as deputy leader.
English, 54, said he was "excited and humbled" to take the top job after eight years as Key's deputy and finance minister.
"This will be a government supporting economic growth and ensuring that the benefits of growth are widely shared," he told reporters.
"Under their leadership, New Zealanders will continue to benefit from the stable government they expect, along with a dedicated focus on delivering results for families and businesses," he said.
A former farmer with degrees in commerce and literature, English has been in parliament since 1990 and was previously leader of the National Party in 2002 when it suffered its worst election defeat.
"You learn more from losing than you do from winning," said English, who will seek National's fourth straight election win in late 2017.
English said New Zealand's prosperity meant the country did not have the pool of disaffected voters responsible for Brexit and US President-elect Donald Trump's victory.
And he said a priority for his government was ensuring the most needy were given opportunities.
"We have a strong economy, almost unique in the developed world, and most New Zealanders would expect to be able to share in that," he said.
A committed Catholic with six children, English is regarded as far more socially conservative than Key, opposing the 2013 legalisation of same-sex marriage and speaking out against abortion and voluntary euthanasia.
Key, who resigned for family reasons after eight years and prime minister and 10 as party leader, said he was looking forward to becoming an anonymous backbencher.
He congratulated English and Bennett, saying he did not expect the government's direction to change under the new team.
"I don't think it will be a radically different agenda under Bill English," he told reporters.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
