Liz Truss scrapped her plan to freeze corporation tax next year in another dramatic U-turn, hours after she fired her ally Kwasi Kwarteng and replaced him with Jeremy Hunt as UK Chancellor of the Exchequer.
The humiliating reversal follows three weeks of market turmoil since Sept. 23, when Kwarteng announced a massive program of unfunded tax cuts. Faced with no detail on how the government could make the sums add up, traders drove the pound to a record low against the dollar and forced the Bank of England into an emergency intervention to support the bond market.
“It is clear that part of our mini budget went further and faster than the markets were expecting,” Truss said Friday in a short press conference. “So the way we are delivering our mission right now has to change.”
