But her efforts to salvage her position failed to win over financial markets and Conservative MPs,and she now faces speculation of a bid to oust her from Downing Street in the coming weeks,as she reversed plans to cut corporation tax,which will now rise from 19 per cent to 25 per cent next April.
In an eight-minute press conference in which she took just four questions on Friday (London time),Truss said she wanted to be “honest” that the country is facing a “difficult” situation.
She had sacked Kwarteng after dramatically summoning him to return from Washington early,where he was attending the annual meeting of the International Monetary Fund with foreign counterparts,including meeting with Australia’s treasurer Jim Chalmers.
“People across this country rightly want stability,” Truss said,adding:“It is clear that parts of our ‘mini’ Budget went further and faster than markets were expecting.”
“I have therefore decided to keep the increase in corporation tax that was planned by the previous government,” she said. “This will raise £18bn a year.”
The pound dropped following her briefing to $1.119 against the US dollar,while yields on gilts tipped higher to 4.5 per cent.