Government u-turns on corporation tax cut

The rise will now go ahead and will raise £18bn a year. Explaining why the decision was made, she said: “It is clear that parts of our mini-budget went further and faster than the market was expecting.”

In a short press conference given in Number 10, Truss also confirmed the appointment of former foreign secretary Jeremy Hunt as the new chancellor following the departure of Kwasi Kwarteng earlier today (14 October). 

Some announcements made in the mini-budget have come under immense scrutiny since it took place last month, with the government having previously reversed its top 45% rate of income tax cut during the Conservative Party Conference. 

Following its corporation tax u-turn, the pound accelerated its slide against the dollar - falling by 1.2% to $1.1187. The FTSE 100 index, meanwhile, has climbed 87 points - or 1.3% - to 6,938.