LIZ Truss has announced a ANOTHER mini budget u-turn after she fired Kwasi Kwarteng as Chancellor this afternoon.
The PM confirmed that plans to scrap a rise in corporation tax next year will no longer go ahead.
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In a press conference this afternoon the PM said: “It is clear that parts of our mini budget went further and faster than markets were expecting.
“So the way we are delivering our mission right now has to change. We need to act now to reassure the markets of our fiscal discipline.
“I have therefore decided to keep the increase in corporation tax that was planned by the previous government.”
Ms Truss added: “We owe it to the next generation to improve our economic performance, to deliver higher wages, new jobs and better public services and to ease the burden of debt.
“I have acted decisively today because my priority is ensuring our country’s economic stability as Prime Minister, I will always act in the national interest. This is always my first consideration.”
The PM admitted she found u-turning again “difficult”.
But she vowed: “we will get through this storm”.
Ms Truss promised to deliver “the strong and sustained growth that can transform the prosperity of our country for generations to come”.
The PM appointed Jeremy Hunt as Chancellor today after sacking her close ally Mr Kwarteng.
The MP was only in the role for 38 days, making him the UK’s second shortest ever Chancellor.
In his resignation letter Mr Kwarteng said: “You have asked me to stand aside as your Chancellor. I have accepted.
“It is important now we move forward to emphasise your government’s commitment to fiscal discipline… I look forward to supporting you from the backbenches.
“We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. I believe your vision is the right one.
“It has been an honour to serve as your first Chancellor.”
An embattled Mr Kwarteng last night hinted a u-turn on corporation tax was imminent, as he said “let’s see” if the promised tax cut goes ahead.
This morning the ex-Chancellor touched down in London after cutting short his US trip to hold urgent talks with Ms Truss.
Within minutes of landing at Heathrow Airport reports emerged that he would be fired by his close friend and ally, the PM.
Rebellious Tory MPs have been urging the ex-Chancellor to row back on his £45billion mini budget tax spree to calm the jitters in the money markets.
Mr Kwarteng yesterday admitted his “Growth Plan”, delivered less than three weeks ago, had caused some “turbulence”.
But he remained steadfastly committed to his laser-focused mission to turbocharge the economy – and insisted he was “going nowhere”.
Treasury sources said he was coming back to the UK early to work on his Halloween statement, where he will lay out his plan to wrestle down Britain’s debt.
TIMELINE OF TURMOIL
September 5 Liz Truss beats Rishi Sunak to win the Tory leadership race
September 6 Liz Truss is formally appointed as PM of the UK
September 23 Kwasi Kwarteng unveils his controversial mini-budget, including £45bn worth of tax cuts
September 26 The pound falls to its lowest level against the dollar since decriminalisation in 1971. Sterling fell by more than 4% to just $1.03 in early trading in Asia, before recovering to $1.09 in the afternoon
September 28 The Bank of England made a dramatic intervention today in a bid to save Brits’ pensions, as several funds faced collapse
October 2 Conservative Party Conference kicked off in Birmingham. A row breaks out over whether the PM should uprate benefits in line with inflation
October 3 Kwasi Kwarteng confirms u-turn on scrapping the 45p top rate of income tax. Meanwhile, ministers and MPs tear each other apart in private briefings and publicly over the PM’s handling of the economy
October 7 House prices dipped in September as mortgage interest rates soared
October 12 Tory MPs demand the PM gets a grip on the economy at an extremely tense meeting of the 1922 backbench committee
October 14 Kwasi Kwarteng is sacked as Chancellor by his friend and ally, the PM
This morning new trade minister Greg Hands insisted there were “no plans” to change the mini-Budget and tried to play down the uncertainty.
He told LBC: “The Prime Minister and the Chancellor are absolutely determined to stick to the growth plan, to stick to the changes they outlined.
“There are absolutely no plans to change anything, except for the fact that there is going to be a medium-term fiscal plan.”
