Liz Truss is expected to be forced to scrap parts of Kwasi Kwarteng's mini-budget within days, amid growing pressure from senior Tories to reassure markets and rescue her administration.
The Chancellor is likely to find a significant section of the mini-budget redrawn on his return from the International Monetary Fund’s annual meeting in Washington to London. Days of open revolt among Tory MPs have resulted in an emerging market consensus that another U-turn is on the cards.
The Prime Minister’s key pledge to scrap the planned increase in corporation tax from 19% to 25% is widely seen as a likely casualty in the coming days. The prediction comes amid reports that senior Tories are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, both of whom she beat in the leadership election.
