Chancellor sacked as Truss U-turns on corporation tax...

In a dramatic, fast-moving day, the Chancellor Kwasi Kwarteng was sacked ahead of a press conference by Liz Truss which reversed the planned cut to corporation tax.

In a brief news conference in which she once again refused to say sorry or apologise for the fallout from the mini-Budget, Truss said she was still committed to her low-tax, high-growth agenda, but did admit that her government’s mini-budget 'went further and faster than markets were expecting'.

She said: "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."

She made no mention of changes to the stamp duty cut that was announced at the mini-Budget, suggesting that this cut will remain in place.

Kwarteng was sacked after only six weeks in the role and replaced by former Health Secretary Jeremy Hunt, who is now the fourth Chancellor this year alone.

Kwarteng's sacking makes him the second shortest-serving Chancellor in history and comes after he was forced to hurry back from a meeting with the IMF and fellow finance leaders in Washington.

He and Truss have been under huge pressure since the mini-Budget was announced - which saw a series of unfunded tax cuts that quickly spooked the markets, saw the pound tumbling to record lows against the dollar and mortgage rates soaring in anticipiation of higher interest rates.

Truss said the medium-term fiscal plan will still go ahead at the end of this month (October 31), delivered by Hunt. This will be accompanied by forecasts from the independent OBR.

Kwarteng, Truss's closest political ally and her ideological soulmate, was in position for only 38 days, 25 days fewer than his predecessor Nadhim Zahawi (who was only really in the role on a caretaker basis).

The Guardian reports that Truss and Kwarteng held different views on how far the government should go in reversing key elements of its plan to reassure the markets and ease the fears of worried Conservative MPs.

Timothy Douglas, Head of Policy and Campaigns at trade body Propertymark, said of the apppointment of the new Chancellor: “Reflecting on the recent announcement that Jeremy Hunt has now entered his new position as Chancellor, we would firstly like to welcome him into his role but secondly ask that he works with us to tackle issues faced across the housing sector.

“The ex-Chancellor, Kwarteng’s introduction of the recent review to Stamp Duty was welcomed and will help to bring people's budgets in line with rising house prices. It is disappointing however to see a U-turn on keeping Corporation Tax low announced today which will mean that next year’s rises will see agencies and company landlords tighten their belts whilst facing other growing costs."