Liz Truss bows to pressure with corporation tax U-turn ‘on the table’

Liz Truss made the promise to cancel the corporation tax rise a central plank of her leadership campaign. Photograph: UK Parliament/Jessica Taylor/PA

Liz Truss has bowed to intense pressure from Conservative MPs and the markets by agreeing to redraw her mini-budget, paving the way for a major U-turn on her signature corporation tax cut.

In another serious blow to her authority as prime minister, government sources told the Guardian that a climbdown on the plan to scrap the rise in corporation tax was now “on the table”.