Liz Truss to hike corporation tax in U-turn; Jeremy Hunt may be new chancellor

Truss also described Hunt as ‘one of the most experienced and widely respected government ministers and parliamentarians’.

“He shares my convictions and ambitions for our country. He will deliver the medium-term fiscal plan at the end of this month. He will see through the support we are providing to help families and businesses, including our energy price guarantee,” The Guardian quoted Truss as saying at Downing Street.

Opening her press conference by saying she has been ‘ambitious for growth’, she said she knows what it’s like ‘to grow up somewhere that isn’t feeling the benefits of growth’.

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“I saw what that meant. And I’m not prepared to accept that for our country. I want a country where people can get good jobs, new businesses can set up and families can afford an even better life,” Truss said, adding she will “always act in the national interest.”

Admitting the situation is difficult, the British PM said, “I want to be honest, this is difficult. But we will get through this storm and we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.”

Bowed to intense pressure from Conservative MPs and the markets by scrapping her signature corporation tax cut from the government’s mini-budget, Truss said “Parts of her government’s mini-budget went further and faster than markets were expected.”

“So the way we are delivering our mission right now has to change. We need to act now to reassure the markets of our discal discipline,” Truss said, adding, “I have therefore decided to keep the increase in corporation tax tat was planned by the previous government.”