Hours after sacking her chancellor, Kwasi Kwarteng, the Prime Minister made another dramatic U-turn promising that a planned rise in corporation tax from the present 19% to 25% will go ahead next year after all.

The rise – proposed by former chancellor Rishi Sunak – will raise £18 billion and is the second U- turn that Liz Truss has made since outlining her mini-budget three weeks ago. Abandoning the tax rise was one of Team Truss’s main drivers to helping businesses grow and attract overseas investment.

At a brief and grisly press conference this afternoon, Truss 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.”