The government is set to raise corporation tax despite promising not to do so in the mini-budget, Sky News understands.
She added:"We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term."
It is the second major tax cut U-turn in three weeks after the government confirmed it would not go ahead with a plan to scrap the 45p top rate of income tax promised in the mini-budget on 23 September.Mr Kwarteng cut short his trip to the International Monetary Fund in Washington DC and returned to the UK on Friday morning as expectations of another significant U-turn mounted.
But his early return was not enough to save his job and less than two hours after he landed, he had been sacked.The past three weeks have been marked by economic turmoil, with the pound reaching a record low against the dollar, interest rates soaring and the Bank of England having to intervene. The reversal follows warnings from the Institute for Fiscal Studies, a leading economics think tank, that Mr Kwarteng'sThe government has come under increasing pressure from senior Tories to take steps to reverse aspects of the mini-budget to allay market concerns.
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