Liz Truss has gone back on her plans to reverse proposed corporation tax increases, a key part of her leadership campaign, despite the government saying repeatedly that nothing would change.
It comes after she sacked her chancellor Kwasi Kwarteng earlier on Friday afternoon, with Jeremy Hunt installed in his place.
She told a Downing Street press conference: "It is clear that parts of our mini-budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change."I have therefore decided to keep the increase in corporation tax that was planned by the previous government.
"This will raise £18 billion per year. It will act as a down payment on our full medium-term fiscal plan which will be accompanied by a forecast from the independent [Office for Budget Responsibility]. "We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term."She added: "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."
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Heathrow Airport: PM says she backs expansion with third runwayLiz Truss indicates she backs her transport secretary's support for Heathrow airport expansion.
Read more »
No fault evictions will be banned, says Liz TrussThe prime minister confirms that the government will stick to its promise to protect tenants in England.
Read more »