Kwasi Kwarteng has been sacked as Chancellor of the Exchequer making him one of the shortest-serving chancellors in modern British politics.

A central part of Liz Truss’ leadership campaign was to scrap plans to up the rate of Corporation Tax from 19 per cent to 25 per cent -at a cost of £18billion This was unveiled by Kwasi Kwarteng as a policy three weeks ago in his disastrous unfunded tax-cutting mini-budget. PM Truss is now expected to announce the rate will go up next year after all, after weeks of economic and political turmoil that now threatens to undermine her position.

Tory whips have warned Truss could face a leadership challenge if the long-awaited economic statement on 31st October fails to end the turbulence in the financial markets. The big question is will either Rishi Sunak or Penny Mordaunt, both failed leadership challengers in the summer, or even Boris Johnson be in line to replace her as Prime Minister.

Mel Stride, Central Devon Conservative MP and chairman of the Treasury Committee, seemed to confirm changes to the mini-budget on BBC Breakfast this morning. He said, ‘What I think I’d like to hear is that these rumours that there will be a reset moment around the tax measures that he announced in late September are correct because I think things have reached a stage now with the markets and with confidence in those financial markets where we need a fundamental reset, so I’m hoping that it’s to engage in conversations with the PM and others and to row back on those unfunded tax cuts announced in September.’

The fall in the pound and pension funds have been illustrated in this cartoon…