Truss confirms new tax U-turn and insists she will stay as PM - BBC News

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Truss confirms new tax U-turn and insists she will stay as PM - BBC News
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'Liz Truss has sacked her chancellor for carrying out the policies of Liz Truss' Labour's Jonathan Ashworth says 'we have a government in meltdown' as he calls for a change of government

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 expectedIt 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”

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