PM Liz Truss has announced another U-turn in her government’s tax-cut plan, in an effort to reassure financial markets.
Truss says she will reverse her plan to scrap an increase in corporation tax and admits the government’s mini-budget had gone “faster and further” than many expected
Asked why she should stay on as PM, she says she is “determined to see through what I promised”
It comes after the PM sacked her chancellor, Kwasi Kwarteng, and replaced him with former health and foreign secretary Jeremy Hunt
Kwarteng lost his job just three weeks after he announced unfunded tax cuts that triggered financial turmoil
In a letter, Kwarteng backs Truss’s economic “vision” for the country and says he will continue to support her from the backbenches
The PM has been under growing pressure from within her party to rethink her economic plans, with one Tory MP telling the BBC: “It’s checkmate, we’re screwed”
