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| This is difficult, Liz Truss admits after major U-turn | This is difficult, Liz Truss admits after major U-turn |
| (31 minutes later) | |
| WATCH: Liz Truss asked why she should stay on as PM | |
| WATCH: Liz Truss asked why she should stay on as PM | |
| Liz Truss has described sacking her chancellor and scrapping a major economic policy after just 39 days as prime minister as "difficult". | Liz Truss has described sacking her chancellor and scrapping a major economic policy after just 39 days as prime minister as "difficult". |
| In a brief statement after a day of turmoil, she reversed planned cuts to business tax aimed at boosting growth. | In a brief statement after a day of turmoil, she reversed planned cuts to business tax aimed at boosting growth. |
| She admitted "parts of our mini-budget went further and faster" than the markets were expecting. | She admitted "parts of our mini-budget went further and faster" than the markets were expecting. |
| But she insisted she would stay on as PM to see through her "mission" to get the economy growing. | But she insisted she would stay on as PM to see through her "mission" to get the economy growing. |
| "I'm absolutely determined to see through what I promised - to deliver a higher growth, more prosperous United Kingdom to see us though the storm we face," Ms Truss said. | "I'm absolutely determined to see through what I promised - to deliver a higher growth, more prosperous United Kingdom to see us though the storm we face," Ms Truss said. |
| The eight-minute news conference came after a dramatic day in which the prime minister fired Kwasi Kwarteng as chancellor after he returned early from a US summit. | The eight-minute news conference came after a dramatic day in which the prime minister fired Kwasi Kwarteng as chancellor after he returned early from a US summit. |
| Some Tory MPs have been calling for the prime minister to resign following the news conference, which one senior backbencher branded "a mega disaster". | Some Tory MPs have been calling for the prime minister to resign following the news conference, which one senior backbencher branded "a mega disaster". |
| The Liberal Democrats and the SNP have called for a general election, while shadow chancellor Rachel Reeves said a new government led by Labour is "what this country needs". | The Liberal Democrats and the SNP have called for a general election, while shadow chancellor Rachel Reeves said a new government led by Labour is "what this country needs". |
| But Ms Truss has ruled out a general election until 2024 and with the government's large majority in Parliament the opposition would find it very difficult to trigger one. | But Ms Truss has ruled out a general election until 2024 and with the government's large majority in Parliament the opposition would find it very difficult to trigger one. |
| Live updates: Truss confirms new tax U-turn | Live updates: Truss confirms new tax U-turn |
| Sturgeon urges Tories to oust 'lame duck' Truss | |
| Markets react as Truss announces new tax U-turn | Markets react as Truss announces new tax U-turn |
| The prime minister has appointed former Health Secretary Jeremy Hunt - who backed Rishi Sunak in the Tory leadership contest - as the new chancellor. | The prime minister has appointed former Health Secretary Jeremy Hunt - who backed Rishi Sunak in the Tory leadership contest - as the new chancellor. |
| Ms Truss said her new chancellor shared her vision for the country and would deliver a statement on her economic plan at the end of this month. | Ms Truss said her new chancellor shared her vision for the country and would deliver a statement on her economic plan at the end of this month. |
| Admitting "we need to act now to reassure the markets", Ms Truss struck a solemn tone as she reversed a key policy to scrap the planned rise in corporation tax from 19% to 25%. | Admitting "we need to act now to reassure the markets", Ms Truss struck a solemn tone as she reversed a key policy to scrap the planned rise in corporation tax from 19% to 25%. |
| She said the move should raise £18bn a year in tax revenue for the government and act as a "down payment" on her economic plan. | She said the move should raise £18bn a year in tax revenue for the government and act as a "down payment" on her economic plan. |
| "I want to be honest, this is difficult," Ms Truss said. "But we will get through this storm." | "I want to be honest, this is difficult," Ms Truss said. "But we will get through this storm." |
| Following her statement, Ms Truss took questions from four journalists, all of whom asked her why she had not left office along with Mr Kwarteng. | Following her statement, Ms Truss took questions from four journalists, all of whom asked her why she had not left office along with Mr Kwarteng. |
| She said she was "determined to see through what I've promised" before leaving abruptly, shocking some journalists who did not get a chance to ask questions. | She said she was "determined to see through what I've promised" before leaving abruptly, shocking some journalists who did not get a chance to ask questions. |
| The statement marks the second major U-turn on the mini-budget after Ms Truss cancelled her plan to scrap the top rate of income tax earlier this month. | The statement marks the second major U-turn on the mini-budget after Ms Truss cancelled her plan to scrap the top rate of income tax earlier this month. |
| In office for 39 days, Ms Truss won the Conservative Party leadership last month after promising to slash taxes and deregulate the economy in a bid to "get Britain moving". | In office for 39 days, Ms Truss won the Conservative Party leadership last month after promising to slash taxes and deregulate the economy in a bid to "get Britain moving". |
| On 23 September, Mr Kwarteng unveiled a so-called mini-budget to deliver the prime minister's vision, announcing the biggest package of tax cuts in decades. | On 23 September, Mr Kwarteng unveiled a so-called mini-budget to deliver the prime minister's vision, announcing the biggest package of tax cuts in decades. |
| But the mini-budget spooked financial markets and sparked a revolt among Tory MPs, who urged the prime minister to drop parts of her economic plan to shore up the UK's finances. | But the mini-budget spooked financial markets and sparked a revolt among Tory MPs, who urged the prime minister to drop parts of her economic plan to shore up the UK's finances. |
| The prime minister said she and Jeremy Hunt shared the same vision for the country | |
| Ms Truss's statement has intensified speculation about her future, with some Tory MPs sharing their thoughts with the BBC."She will have to resign," said one senior backbencher said, adding "she is worse than Corbyn", referring to the former Labour leader. | |
| A former cabinet minister said "we cannot go on like this indefinitely", adding the "electorate are not going to forgive us" if Tory MPs oust another prime minister. | |
| One of her supporters said "that was the worst press conference I have seen in a decade and a half". | One of her supporters said "that was the worst press conference I have seen in a decade and a half". |
| Another MP, who voted for Ms Truss in the leadership election, said "I had my hands over my eyes" during the speech. | Another MP, who voted for Ms Truss in the leadership election, said "I had my hands over my eyes" during the speech. |
| One Scottish Tory MP said the statement made former PM Theresa May's "worst speech look like the Gettysburg Address", referring to a famous speech delivered by President Abraham Lincoln. | |
| There has been muted reaction among Ms Truss's supporters so far. | There has been muted reaction among Ms Truss's supporters so far. |
| But members of Ms Truss's cabinet have been tweeting support for her and the new chancellor, Mr Hunt. | But members of Ms Truss's cabinet have been tweeting support for her and the new chancellor, Mr Hunt. |
| Former chancellor Nadhim Zahawi tweeted: "It's time to get Britain moving. We are determined to grow the economy, eliminate the Covid backlog and protect people from Putin's energy warfare." | Former chancellor Nadhim Zahawi tweeted: "It's time to get Britain moving. We are determined to grow the economy, eliminate the Covid backlog and protect people from Putin's energy warfare." |
| In a tweet, Deputy Prime Minister Therese Coffey - a close ally of Ms Truss - said the PM was "right to act now to ensure our country's economic stability". | In a tweet, Deputy Prime Minister Therese Coffey - a close ally of Ms Truss - said the PM was "right to act now to ensure our country's economic stability". |
| Commenting on Mr Hunt's appointment, the Levelling Up Secretary Simon Clarke said the new chancellor was "hugely capable and experienced". | |
| On a day of fast-moving political developments: | |
| Mr Kwarteng cut short a visit to the US to hold talks with the prime minister in Downing Street | |
| By early Friday afternoon, Mr Kwarteng had been sacked as chancellor amid intense speculation of a U-turn | |
| In a letter to the PM, Mr Kwarteng said Ms Truss's economic vision was "right" for the country | |
| Responding, Ms Truss said she was "deeply sorry" to lose him and thanked him for putting "the national interest first" by standing down | |
| Government borrowing costs rose and the pound's value fell after the PM's latest U-turn | |
| Some economists warned that the latest developments might not be enough to restore the UK's credibility | |
| Scotland's First Minister Nicola Sturgeon called for a general election, saying Ms Truss is "unfit to hold the office of prime minister" |